the iso 55000 asset management standard what does … · the asset management system in iso 55000...

THE ISO 55000 ASSET MANAGEMENT STANDARD

What does this mean for my organization?

Salman Zafar, Advisor, Corporate Asset Management

Vanessa Chau, Manager, Corporate Asset Management

City of Brampton

AGENDA

• Introduction - City of Brampton

• Brampton’s Corporate Asset Management Journey

• ISO 55000 Standard for Asset Management

• Assets, Asset Management & Asset Management System

• Asset Management Planning Regulation in Ontario

• Brampton’s Corporate Asset Management Road Map

• Brampton’s Corporate Asset Management Governance Structure

• Benefits of Alignment with ISO 55000

• Key Takeaways

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CITY OF BRAMPTON

Brampton’s Corporate Asset Management Journey

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Corporate Asset Management Office

▪ Representation from all Service Areas in

Corporate Asset Management Network

▪ Developed a Corporate AM Plan to meet

requirements of Federal Gas Tax Agreement

▪ Council Endorsed Corporate AM Roadmap

Asset Management Planning Regulation

▪ Strategic Asset Management Policy

▪ Comprehensive Asset Inventory

▪ Levels of Service Framework

▪ Integration with Financial Planning

Training & Innovation Centre

▪ Launched Asset Management Training and

Innovation Centre

▪ 100+ Graduates to date

Future Ready Brampton

▪ Evidence Based Decision Making

▪ Sustainable Levels of Service

▪Alignment with ISO 55000

2016 2018 - 2024 2024+2017

ISO 55000 Standards for Asset Management

• ISO 55000 series represent a global consensus on asset management. They provide the terminology, requirements and guidance for implementing, maintaining and improving an asset management system:

➢ ISO 55000: Overview, Principles and Terminology

➢ ISO 55001: Management Systems – Requirements

➢ ISO 55002: Management Systems – Guidelines for application

• Increase value generated by organization by identifying the best means to integrate all activities within that organization to achieve its purpose efficiently and effectively.

• Best Means => Extract maximum value from assets by balancing risk, cost, and asset performance.

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Objectives of ISO 55000

• Identify Value assets provide.

• Alignment between technical, financial and operational decisions that collectively enable the achievement of corporate objectives.

• Leadership and commitment from top management in using asset management as an evidence based decision making framework.

• Assurance that assets will continue to fulfill their required purpose.

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What’s an Asset? It’s All About the Value!

➢ An asset is “a thing, item, or entity that has potential or actual value to an

organization.”

➢ Assets fundamentally exist to provide value to customers.

➢ In municipal context, what’s the value of our infrastructure assets ???

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Brampton’s Infrastructure Assets

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Information Technology

Condition: Good

Fire

Corporate Fleet

Parks

Stormwater

Animal Services

Corporate Facilities

Library

Recreation & Culture

Service Brampton

Condition: Fair

Condition: Fair

Condition: Good Condition: Good

Condition: GoodCondition: Good

Condition: Fair

Condition: Good

Condition: Fair

Condition: Good

Condition: Good

Overall Condition: Good

Total Replacement Value: $5.5 Billion

Transportation

Transit

What is Asset Management?

• “Coordinated activity of an organization to realize value from its assets.”

• Asset Management “involves the balancing of costs, opportunities, and risks against

the desired performance of assets, to achieve the organizational objectives.”

(Source: ISO 55000)

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Value Based Decision Making

• Identify the criteria that brings the greatest value to the organization.

• Prioritize Investments based on value and constraints.

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• Maximize Value for Money:

Balance between life-cycle costs, desired quality, performance,

service levels and environmental, social and economic impacts.

(Source: IAM)

Value Based Decision Making

Which of the following is not a value metric?

a) Reputation (consequence of failure)

b) Reliability (probability of failure)

c) Safety (consequence of failure)

d) Cost (consequence of failure)

e) Environment (social responsibility)

f) Resilience and Interdependency (consequence of failure)

g) Customer Service (consequence of failure)

h) Regulatory Compliance (consequence of failure)

i) Impact on Strategic Objectives (election commitments)

j) Community Attachment (culture and heritage)11

The Asset Management System in ISO 55000

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Clarity about organizational

priorities and goals

(Source: ISO 55000)

• Set of interrelated and

interacting elements that set

the asset management policy,

strategies, plan, processes

and asset information systems

to ensure that organizational

objectives are met.

• Means by which an

organization practices the

discipline of asset

management

Asset Management Line of Sight in ISO 55000

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Asset Management Line of Sight in ISO 55000

Lin

e o

f Si

ght

(Source: ISO 55000)

Clear understanding of

how assets enable the

organization to attain

its corporate objectives

IAM’s Asset Management Framework: How the Asset Management System Works?

15(Source: IAM)

Brampton’s 2016-2018 Strategic Plan

Brampton’s 2016-2018 Strategic Plan

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Municipal Asset Management Planning

Implications of Ontario Regulation 588/17

Strategic Policy Core Infrastructure All Infrastructure Financial Strategy Annual Review

• Define Role of Council and

senior management

• Integration with Budgets &

Long-Term Financial Plan

• Alignment with Official Plan

• Alignment with Master Plans

• Community Engagement

• Climate Change Mitigation &

Resiliency

• Phase 1: Roads, Bridges

& Stormwater

• Inventory of Assets

• Current Levels of Service

• Cost to Maintain Current

Levels of Service

• Phase 2: All Assets

• Inventory of Assets

• Current Levels of Service

• Cost to Maintain Current

Levels of Service

• Builds on Phase 1 & 2

• Proposed Levels of Service

based on Sustainability &

Affordability

• Lifecycle Management

• Financial Strategy

• Annual Update to

Council

• CAM Plan update

every 5 years

Asset Management System for Ontario Municipalities

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Strategic Asset Management Policy

Levels of Service Strategy

Financial Strategy

Risk Management Strategy

Corporate Asset Information Strategy

Asset Management Governance Strategy Communication

Strategy

Asset Lifecycle Management Strategy Demand

Management Strategy

Maintenance Management

Strategy

State of Local Infrastructure Report

Service Area Asset Management Plans

Corporate Asset

Management

Strategies

Corporate Asset Management Plan

Corporate Strategic Plan, Official Plan and Master Plans

Core Assets: Roads, Bridges, Stormwater

All Other Assets: Transit, Fire, Fleet, Parks, Recreation, Facilities, IT,

Library, Animal Services, Service Brampton, etc.

Ongoing Improvements

Ongoing Improvements

Ongoing Improvements

Ongoing Improvements

Ongoing Improvements

Ongoing Improvements

Corporate

Asset

Management

Roadmap

High Priority

Initiatives

Strategic Asset

Management PolicyCore Infrastructure Plan All Assets Plan

All Infrastructure Assets

Target Levels of Service &

Financial Strategy

2018 2019 2020 2021 2022 2023 2024

People P1. AM Governance

Strategy

S5. Develop a Corporate

Asset Information

Strategy

S7. Integration with

Official Plan & Master

Plans

S15. Develop AM

Strategies

Assets

A1. Enhance & Maintain

Comprehensive Asset

Registry

A13. Linear Assets

Registry

S9. Develop &

Implement AMPs by

Service Area

Business

Processes

BP6. Comprehensive

CAM prioritization into

Financial Budgeting &

Long-term Financial

Plan

Technology

A12. CWMS

Implementation

T1. Integration with

Technology Masterplan

Brampton’s Corporate Asset Management (AM) Governance Structure

Corporate Leadership Team

Asset Management Steering Committee

Council

AM Network AM Technical LeadsCorporate AM Office

Directly involved in delivering

the services: 80+ staff

Strategically develop, administer and

support asset management activitiesImplements the CAM Roadmap in

collaboration with the AM Technical Leads

Approves and endorse strategies and plans.

Council reviews progress annually

Provides guidance on

high priority initiatives

Benefits of Alignment with ISO 55000

• Informed asset investment decisions

• Demonstrated compliance

• Enhanced reputation

• Improved organizational sustainability

• Improved efficiency and effectiveness

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“integrate all activities”

“lose the silos mentality”

Brampton’s Asset Management Maturity Assessment

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Where we are Where we want to be

Conclusion: It’s a Way of Doing Business!

• Ensures resources are wisely invested

• Continually balances performance, risk and expenditures

• Ensures customer levels of service are met

• Ensures that organization strategic plans are delivered

• Does all this in the most efficient and cost effective manner

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Questions?

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Email: caminfo@brampton.ca

Visit www.brampton.ca/CAM