ISO 55000 and the benefits of implementation for Councils

Tom CarpenterCEO, IQ-AM Pty LtdCertified Asset Management AssessorAsset Management Council AMBOK Team Member and Victorian Chapter ChairJAS-ANZ Accreditation AuditorISO PC 251 Australian Co-RepresentativeISO WG39 Australian RepresentativeJAS-ANZ Accreditation Scheme Tech Committee Representative

Presentation © IQ-AM Pty LtdRTO 22515ABN 77147017525Some content from other sources utilised for educational purposes

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External Drivers

• Regulators:− Economic− Environmental− OH&S

• Government:− Central agencies – Treasuries− Service Agencies

• Insurance/ Risk Management• Legal (Protection and Attack)• Customers and Community• Boards/Governance

/Top Management• Investors and Lenders

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Case

Stu

dy

External Drivers

The Victorian Black SaturdayBushfire Royal Commissioninvestigated:

– Asset Design– Maintenance– Asset Age– Risk analysis and management– Resources, skills, management

and supervision– Training– Renewal and Replacement funding– Customer willingness to pay

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4

Asset management translates the organization's objectives into asset-related decisions, plans and activities, using a risk based approach. 1

3.3.1asset management: coordinated activity of an organization (3.1.14) to realize value from assets (3.2.1) 1

Definition:

What it does:

What is Asset Management?

1 Definition and text extracted from ISO 55000 FDIS Draft (© ISO, 2013)

International Standard

ISO 55000 – DefinitionsISO 55001 – Requirements

ISO 55002 – Guidelines

WSAA – Aquamark & future ISO Standard

IPWEA - IIMM

WA Treasury – Guidelines

Regulators will use the International Standardas the independent ‘test’ or benchmark

Ausroads – Guidelines

Organisational/ Other Guidelines & Standards

What is Asset Management?

however:

the outputs (activities and decisions) generated or impacted on at least 82% of industry’s Total costs.

During an utility industry benchmarking study it was determined that the cost of the Asset Management ‘System’ made up only 3% of industry cost –

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Shutdown/Outage

Preventive Modification Corrective(ISO 55001 Clause 10.1 (c))

Example of alignment of Managing the Organisation, the AMS, AM and managing

AssetsOrganisational Objectives(ISO 55001 Clauses 4.1, 4.2)

Maintenance Plan(Strategy)

(ISO 55001 Clause 6.2.2)

Maintenance Plan (Tactics and Program)

(ISO 55001 Clause 8.1)

Asset Management Plan(s)(ISO 55001 Clauses 4.4, 5.2, 6.1, 6.2)

Proactive Activities/Actions(ISO 55001 Clause 10.2)

Predictive Activities(ISO 55001 Clause 10.2)

Preventive(ISO 55001 Clause 10.1

(called up by 10.2))

Manufacturer’srecommendations, time and/or usage,MTBF, or expected

life based

Outputs fromcontinuous or

periodic conditionmonitoring

Outputs fromstatistical analysis,

FMECA, RCA,RCM, Failure

prediction models

‘Dynamic’ programming

pathway

‘Passive’ programming

pathway

Corrective Action(ISO 55001 Clause 10.1)

Unplanned/Reactive EVENTS

Emergency/Crisis(ISO 55001 Clause 10.1(a))

BreakdownImmediate CorrectiveMaintenance (CIM)

(ISO 55001 Clause 10.1 (a))

DeferredDeferred CorrectiveMaintenance (CDM)

(ISO 55001 Clause 10.1 (a))

Remedial(ISO 55001 Clause 10.1 (b))

IN FROM

Improvement/Renewal/Replacement(ISO 55001 Clause 10.1 (c))

Op

era

tio

na

l Capital Processes/Plans

(ISO 55001 Clause 10.1 (c))

OUT TO

Imp

rove

me

nt/

Re

ne

wa

l/R

ep

lace

me

nt

Routine and/or Running(ISO 55001 Clause 10.1 (c))

(ISO 55001 Clauses9.3 (c), (f), (g), 10.2)

(ISO 55001 Clauses9.3 (c), (f), (g))

(ISO 55001Clause 6.1)

(ISO 55001 Clause 6.1)

Pe

rfo

rma

nce

mo

nito

rin

g a

nd

re

po

rtin

g(I

SO

550

01

Cla

us

es 7

.5,

9.1

, 1

0.1

(d

), (

e),

10.3

)

© 2013ISO 55001 Maintenance Logic Map(based on DIS draft, may be subject to change)

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Management System Certification

ISO 5500#

AS

SE

T M

AN

AG

EM

EN

T P

LAN

NIN

G

EnablingProcessesfor AssetManagement

Asset ManagementInformation Systemsand DataManagement

AssetManagementPhilosophy & Framework

LEGAL AND STAKEHOLDER REQUIREMENTS AND EXPECTATIONS

Asset data and information systems

Implement asset management solutionsAsset Solutions – operate, maintain, renew,

enhance, retireNon-asset solutions – demand management,

insurance, failure management

Asset management processes, procedures& standards for each asset type

Optimised asset management strategy,objectives, level of service targets and plans

ASSET MANAGEMENT POLICY

ORGANISATIONALSTRATEGIC PLAN

Vision, Mission, Objectives, Level of Service,Business Policies, Risk

Ope

ratio

nal

Pla

nnin

gT

actic

alP

lann

ing

Str

ateg

icP

lann

ing

Mon

itorin

g an

d re

view

Con

tinua

l Im

prov

emen

t

Existing frameworks and understanding

Asset Management Decision-Making Whole-life Cost & Value Optimisation Operations & Maintenance Decision-Making Capital Investment Decision-Making Resourcing Strategy & Optimisation Shutdowns & Outage Strategy & Optimisation Ageing Assets Strategy

Is this Asset Management?

The GFMAM1 Landscape

1GFMAM – Global Forum for Maintenance and Asset Management

The GFMAM 39 essential Asset Management SubjectsSubject Group Asset Management Subject Asset Management Strategy and Planning Asset Management Policy

Asset Management Strategy Demand Analysis Strategic Planning Asset Management Plan

GFMAM Landscape

GFMAM – Global Forum for Maintenance and Asset Management

The GFMAM 39 essential Asset Management SubjectsSubject Group Asset Management Subject Lifecycle Delivery Activities

Technical Standards & Legislation Asset Acquisition & Commissioning Systems Engineering Configuration Management Maintenance Delivery Reliability Engineering Asset Operations Resource Management Shutdown & Outage Management Fault & Incident Response Asset Rationalisation and Disposal

Asset Knowledge Enablers

Asset Information Strategy Asset Knowledge Standards Asset Information Systems Asset Data and Knowledge

Is this Asset Management?

GFMAM Landscape

GFMAM – Global Forum for Maintenance and Asset Management

The GFMAM 39 essential Asset Management SubjectsSubject Group Asset Management Subject Organization and People Enablers

Contract & Supplier Management Asset Management Leadership Organizational Structure & Culture Competence & Behaviour

Risk & Review Criticality, Risk Assessment and Management Contingency Planning & Resilience Analysis Sustainable Development Weather and Climate Change Asset & Systems Change Management Assets & Systems Performance & Health Monitoring Management Review, Audit & Assurance Accounting Practices Stakeholder Relations

Is this Asset Management?

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Is this Asset Management?

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Systems Thinking:

Definition of a ‘System’1:A system is a group of interacting, interrelated, and interdependent components that form a complex and unified whole

Systems have several defining characteristics1:• Every system has a purpose within a larger system• All of a system's parts must be present for the system to carry out

its purpose optimally. • A system's parts must be arranged in a specific way for the system

to carry out its purpose. • Systems change in response to feedback. • Systems maintain their stability by making adjustments based on

feedback. 1 Extracted from: http://www.pegasuscom.com/systems-thinking.html

What is Asset Management?

A group of interacting, and interdependent interrelated,components that form a complex and unified whole

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What is Asset Management?

i.e. from this to this…

…or is it also how you put the activities together?

and avoid this…

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What is Asset Management?

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What is Asset Management?

Asset Management Council AM Framework:

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Managing theOrganisation

AssetManagement

Coordinated activity of an organisation to

realize value from assets

AssetManagement

System

Set of inter-related or Interacting Elements to establish AM policy, AM objectives and processes

to achieve those objectives

AssetPortfolio

Assets that are within the scope of the asset management system

ISO 55000 - Relationships betweenkey terms (modified)

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Being Certified…

ISO 9000Issues:• Failure to recognise that the QMS had a purpose• Failure to link process quality to improvement in

outputs or outcomes• Quality control of audit process

“Ring the boss, tell him we’ve fixed all the potholes”

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Organizational context

Elements of the ISO 55001 AMS

Leadership

Planning

Support

Operation

Performance evaluation

Improvement

asset management: coordinated activity of an organization to realize value from assets

Leaders

hip

(550

01

Cl 5

)To

p M

anag

emen

tAM

Lea

der

ship

& C

om

mitm

ent

(550

01

Cl 5.

1)

AM

Role

s, R

esponsibili

ties

& A

uth

orities

(550

01 C

l 5.3

)

Elements of the ISO 55001 AMS

Organisational Context(55001 Cl 4)

Organisational Objectives

(55001 Cl 4.1, 4.2)

AM Stakeholder’s

needs & expectations(55001 Cl 4.2)

Asset & Organisational

Capability(55001 Cl 4.1, 4.2)

Management/Business System

Integration(55001 Cl 4.3, 6.1)

Organisational Corporate Plan(55001 Cl 5.2)

Scope ofAssets

(55001 Cl 4.3)

Nature & Scale of

Operations(55001 Cl 5.2)

Relevant Organisational

Policies(55001 Cl 5.2)

Internal & External Issues

(Operating Env)

(55001 Cl 4.1, 4.2)

AM & AMS Operations (55001 Cl 8)

Change Management(55001 Cl 8.2)

Outsourced Activities(55001 Cl 8.3)

Plan, Implement & Control(55001 Cl 8.1)

Asset Portfolio

Products and Services

Stakeholders Incl. Customers(55001 Cl 4.1, 4.2)

Strategic Plan for Asset Management (55001 Cl 4.4)

AM Objectives

(55001 Cl 6.2.1)

AM Decision Making Criteria (55001 Cl 4.2)

AM Decision Making & Prioritisation Methodologies & Tools (55001 Cl 6.2.2)

AM

Polic

y(5

5001

Cl 5

.2)

Risks an

d O

pportu

nities (55001 C

l 6.1, 8.2)

Perform

ance Evalu

ation (550

01 C

l 9)

Audit (550

01 C

l 9.2)

Man

agem

ent R

eview (55001 Cl 9.3)

Monito

r & R

eport (550

01 C

l 4.2, 9.1)

Impro

vemen

t Activities (550

01 C

l 10)

Preventive/ Pred

ictive (55001 Cl 10.2)Failu

res & In

ciden

ts (55001 Cl 10.1)Contin

ual Im

pro

vemen

t (55001 Cl 10.3)

AM Plan(s)(55001 Cl 6.2.2)

AM Support (55001 Cl 7)

Competence(55001 Cl 7.2)

Resources(55001 Cl 7.1)

Awareness(55001 Cl 7.3)

Communication(55001 Cl 7.3)

Information(55001 Cl 7.5)

Information Management

& Control(55001 Cl 7.6, 4.2)

LEGENDAM System Element

AM System Interface/ Overlap Element

Overarching AM System Element applying to all other Elements

AM System key linkage

External System Element

NOTE: Based on ISO 55001 DIS Draft(subject to change)

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Buyer Beware!

Organisation

Conformity Assessment BodyAudit Team

Management System Certification

Management System Certification

Current (transitional) situation• Any Conformity Assessment Body (CAB) accredited to

certify ‘Management Systems’ can certify against ISO 55001

• The CAB is responsible for determining its auditor’s competence

• ISO/IEC 17021-5 (auditor competency technical specification) published on the 1st of April 2014 but neither it, nor 17021-1 are enforceable as there is no ‘accreditation scheme’ for CAB’s

• The Asset Management community had NO decision making ‘power’ in this process

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Management System Certification

• JAS-ANZ has developed a Conformity Assessment Body (CAB) Accreditation Scheme based on:

– ISO/IEC 17021 – Requirement’s for management system auditing CAB’s

– ISO/IEC 17021-5 for ISO55001 audit team technical competencies

– GFMAM AM Landscape

– Asset Management Community providing AM accreditation input

• Processes to be completed:

• JAS-ANZ take the Accreditation Scheme to PAC (Pacific Accreditation Cooperation) – meeting in Mexico in June

• Then to EA (European co-operation for Accreditation) and ANSI-ASQ National Accreditation Board (ANAB)

• Then to the International Accreditation Forum (IAF).

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Other Processes/Activities

• PAS 55 – Technical Specifications are normally withdrawn when a corresponding Standard has been released

• AMCouncil has released an ISO55001 ‘Companion Guide’ document.

• WPiAM has created an auditor knowledge exam and certification (Certified Asset Management Assessor (CAMA)

• IIMM being re-issued (2011 mapping doc avail)

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Management System Certification

Key features of the Accreditation Scheme: Will contain:

– Requirements for the CAB– Requirements for the Client– Interpretation and application of the Standard– Requirements for CAB use of subcontractors

Key features:− Auditor competencies− CAB Report content requirements− Any key elements of ISO55002 (interpretation and

application of ISO55001)

Auditor Competency

Asset Managementis Maintenance in drag…

Asset Managementis Reliability Engineering

in drag…

Asset Managementis Financial Management

in drag…

Asset Managementis Maintenance

Management in drag…

Asset Management isFacility Management

in drag…

Asset Managementis Accounting in drag…

The Asset Manager?

Who can be Certified?

ISSUE: Under what circumstances, or contractual arrangements, will Certification be possible?

Owners?Asset Managers?

Service Providers?

Is the determinant: those who make AND control implementation of life cycle management decisions linked to value generation?

Who can be Certified?

ISSUE: Under what circumstances, or contractual arrangements, will Certification be possible?

• Contracted Service Provision− Unit Cost based activities− Works Management

• BOO/BOOT• Alliances• Others?

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Integrated Management System Auditing

What parts or elements of the ISO 55001 AMS fit under the IBMS framework, & which require Asset Management/AMS specific technical skill.

Common Elementsor Requirements

Oth

er/L

ocal

Sta

ndar

ds,

Legi

slati

on,

Regu

latio

ns

Envi

ronm

enta

l M

anag

emen

t(IS

O 1

4001

)

Asse

t Man

agem

ent

(ISO

550

01)

Qua

lity

Man

agem

ent

(ISO

900

1)

Occ

upati

onal

Hea

lth &

Sa

fety

BS

1800

1/AS

/ N

ZS48

01

Additional specific technical skill required

Impact on consultant service offerings

Issue: Does the Asset Management Process Improvement audit/gap tool I use, address all elements of the ISO 55001 Standard and what is being done to ensure alignment?

ISSUE: Process Improvement data gathering or analysis tools will require mapping or modification

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1. Major nonconformity: One or more elements of ISO 55001 are not met, or the outcome is ineffective.

2. Minor nonconformity: One or more elements of ISO 55001 are not fully met, or the outcome is only partly effective.

3. Conforms (first certification audit) fully documented, performance managed, integrated and subject to defined audit, review, continuous improvement and updating.

4. Conforms at re-certification fully documented, performance managed, integrated and subject to defined audit, review, continuous improvement and updating with proven evidence of continuous improvement action completion.

CERTIFICATION CONFORMANCE GRADES

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CERTIFICATION BENCHMARKING?

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CERTIFICATION PATH TO MATURITY

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KEEPING STAKEHOLDERS ON SIDE

Questions?