Editing Earned value management (section)

== History ==
EVM emerged as a [[financial analysis]] specialty in [[Federal government of the United States|United States government]] programs in the 1960s, with the government requiring contractors to implement an EVM system (EVMS).<ref>{{Cite journal|last=Reichel|first=Chance W.|date=2006|title=Earned value management systems (EVMS): "you too can do earned value management"|url=https://www.pmi.org/learning/library/earned-value-management-systems-analysis-8026|journal=PMI Global Congress 2006—North America, Seattle, WA|location=Newtown Square, Pennsylvania|publisher=Project Management Institute}}</ref><ref>{{Cite web|title=Subpart 34.2—Earned Value Management System|url=https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%2034_2.html|access-date=2021-10-07|website=www.acquisition.gov|archive-date=2021-03-18|archive-url=https://web.archive.org/web/20210318205833/https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%2034_2.html|url-status=dead}}</ref> It has since become a significant branch of [[project management]] and [[cost engineering]]. Project management research investigating the contribution of EVM to project success suggests a moderately strong positive relationship.<ref>{{cite web|last=Marshall |first=Robert A. |title=The contribution of earned value management to project success on contracted efforts: A quantitative statistics approach within the population of experienced practitioners |publisher=PMI (www.pmi.org) |date=2006-11-09 |url=http://www.ncmahq.org/files/articles/jcm07_pp21-33.pdf |access-date=2006-11-09 |url-status=dead |archive-url=https://web.archive.org/web/20110722223448/http://www.ncmahq.org/files/articles/jcm07_pp21-33.pdf |archive-date=July 22, 2011 }}</ref> Implementations of EVM can be scaled to fit projects of all sizes and complexities.

The genesis of EVM occurred in industrial manufacturing at the turn of the 20th century, based largely on the principle of "earned time" popularized by [[Frank Bunker Gilbreth|Frank and Lillian Gilbreth]].

In 1979, EVM was introduced to the architecture and engineering industry in a ''Public Works Magazine'' article by David Burstein, a project manager with a national engineering firm.<ref>{{Cite web |date=2020-06-26 |title=Earned Value: A Decades Old Solution |url=https://blackvector.com/2020/06/26/earned-value-a-decades-old-solution/ |access-date=2022-12-01 |website=BlackVector |archive-date=2022-12-01 |archive-url=https://web.archive.org/web/20221201065947/https://blackvector.com/2020/06/26/earned-value-a-decades-old-solution/ |url-status=dead }}</ref> In the late 1980s and early 1990s, EVM emerged more widely as a project management methodology to be understood and used by managers and executives, not just EVM specialists. Many industrialized nations also began to utilize EVM in their own procurement programs.

An overview of EVM was included in the [[Project Management Institute]] (PMI)'s first [[Project Management Body of Knowledge]] (PMBOK) Guide in 1987 and was expanded in subsequent editions. In the most recent edition of the PMBOK guide, EVM is listed among the general tools and techniques for processes to control project costs.<ref>{{cite book|title=A Guide to the Project Management Body of Knowledge|date=2013|publisher=Project Management Institute|location=Newtown Square, Pennsylvania|pages=217–219}}</ref>

The construction industry was an early commercial adopter of EVM. Closer integration of EVM with the practice of project management accelerated in the 1990s. In 1999, the Performance Management Association merged with the PMI to become its first college, the College of Performance Management (CPM). The [[United States Office of Management and Budget]] began to mandate the use of EVM across all government agencies, and, for the first time, for certain internally managed projects (not just for contractors). EVM also received greater attention by publicly traded companies in response to the [[Sarbanes–Oxley Act]] of 2002.

In Australia, EVM has been codified as the standards AS 4817-2003 and AS 4817–2006.

=== US defense industry ===
The EVM concept took root in the [[United States Department of Defense]] in the 1960s. The original concept was called the [[Program evaluation and review technique|Program Evaluation and Review Technique]], but it was considered overly burdensome and not very adaptable by contractors whom were mandated to use it, and many variations of it began to proliferate among various procurement programs. In 1967, the [[United States Department of Defense|DoD]] established a criterion-based approach, using a set of 35 criteria, called the Cost/Schedule Control Systems Criteria (C/SCSC). In the 1970s and early 1980s, a [[subculture]] of C/SCSC analysis grew, but the technique was often ignored or even actively resisted by [[project manager]]s in both government and industry. C/SCSC was often considered a financial control tool that could be delegated to analytical specialists.

In 1989, EVM leadership was elevated to the [[Under Secretary of Defense for Acquisition and Sustainment|Undersecretary of Defense for Acquisition]], thus making EVM an element of program management and procurement. In 1991, [[United States Secretary of Defense|Secretary of Defense]] [[Dick Cheney]] canceled the Navy [[A-12 Avenger II]] Program because of performance problems detected by EVM. This demonstrated that EVM mattered to secretary-level leadership. In the 1990s, many [[Federal Acquisition Regulation|U.S. Government regulations]] were eliminated or streamlined. However, EVM not only survived the acquisition reform movement, but became strongly associated with the acquisition reform movement itself. Most notably, from 1995 to 1998, ownership of EVM criteria (reduced to 32) was transferred to industry by adoption of ANSI EIA 748-A standard.<ref>{{cite web
 | year = 1998
 | title = ANSI EIA-748 Standard – Earned Value Management Systems
 | edition = June 1998
 | publisher = Electronic Industries Alliance
 | url = https://docs.google.com/viewer?a=v&q=cache:KBVRrCRuFvAJ:www.srs.gov/general/EFCOG/02GovtReferences/03NDIAANSI/ANSIEIA748.pdf+%22Earned+Value+Management+Systems%22+eia+748+1998&gl=us&pid=bl&srcid=ADGEESi2T9LwmXNQkXKLmBWoTmcVB0UypvcMKZQFmW4FvZ2BO3weJ0T1RkClzfptwc3CkVSn52aBNDWYMmUq9nOvPuNyvCbyLL41oLDWjFu9sf0eVS2x_SJgOtIMAxId5Fik67rH_SK1}}</ref>

The use of EVM has expanded beyond the U.S. Department of Defense. It was adopted by the [[National Aeronautics and Space Administration]], the [[United States Department of Energy]] and other technology-related agencies.