ISO 55000 – NEW STANDARDS FOR ASSET MANAGEMENT

Peter Way PSM

Chair – NAMS.AU - IPWEA

Member of MB 19 (Australia Mirror

Committee)

Some Key Questions

• What will the standards

deliver?

• Will they replace existing

manuals and practice guides

- such as IIMM?

• Will they create a stimulus for

new guidance and practice?

• Implications for Parks and

Facilities Managers?

Presentation Agenda

Slide 3

1. Current status of the ISO Asset

Management Standards Development

2. An overview of the ISO 55000 suite of

asset management Standards

3. Address the foregoing questions

4. Implications for AMs

5. Your Questions

The International Writing Committee

• PC 251

– has 31 Member Countries

– has 12 Observer Countries

• Five Meetings of PC 251 over 3 years

Australian Representation ISO PC 251 Asset Management

• Main Sectors involved:

– Academia – UWA (Chair)

– Water – WSAA and AWA

– Energy – Energy Networks Australia

– Infrastructure – IPWEA

– Mining – CRC Mining

– Industry – AMC

– Defence – ADO

– Unions - APESMA

Timeframe

Standards Contents

• The ISO 55000 suite includes:

– ISO 55000 Asset management – Overview,

principles and terminology

– ISO 55001 Asset management – Management

System - Requirements

– ISO 55002 Asset management – Management

systems - Guidelines on the application of ISO

55001

Development Inputs

• PAS 55 an early catalyst – BUT new Standards

more generic

• ISO Management System Standards preparation

guidelines:

– ISO Joint Technical Co-Ordination Group

• Common Language

• Standard terminology

– Consistency with other Management Systems;

• Risk

• Environmental

• Quality

Some Key Issues

• All about a MANAGEMENT SYSTEM for asset management

• “What to do” NOT “How to do it”

• Can be applied to ANY assets – not just Physical assets

• Each organization determines which assets involved

• Asset Lifecycle approach- Life Stages to suit each organization.

Who will use these Standards?

– Those establishing, maintaining or improving an asset management system,

– Those delivering asset management activities and service providers,

– Internal and external parties assessing conformance of the organization’s ability to meet legal, regulatory and contractual requirements and the organization’s own requirements.

Why will they be used?

• Because it is good business

practice

• To foster better organizational management processes

• To drive continuous improvement

• To satisfy stakeholders seeking assurance

about how well the assets are managed

• Because regulators or legislation dictates such and maybe requires third party certification

Some Definitions Asset: Item, thing or entity that has potential or actual VALUE to an organization

Item can be physical or non-physical.

The value will vary between different

organizations and their stakeholders.

Value can be tangible or intangible,

financial or non-financial.

Can be applied to all types of assets and by all types and sizes of organizations.

Asset Management & AM System

•Asset Management: –Coordinated activities of an organisation to realise value from assets in the delivery of its outcomes or objectives –Involves balance of costs, risks and benefits - over time

•AM System:

–A set of interrelated or interacting elements of an organization, that establish asset management policies and objectives, and the processes needed to achieve those objectives.

Relationship between Key Terms Fig 1 DIS 55000

Managing the Organisation

Asset Management

Asset management

system

Asset portfolio

Coordinated activity of an organization to realize value from assets

Set of interrelated or interacting elements to establish AM policy, AM

objectives and processes to achieve those

objectives

Assets that are within the scope of the asset management system

55000 - Asset Management Fundamentals

Assets exist to provide value to the organization and its stakeholders

Asset management is not about just the assets, but the value they can provide to the organization and stakeholders – via services or products

Alignment

Asset management translates the organizational objectives into technical and financial decisions, plans and activities.

55000 - Asset Management Fundamentals

Leadership and workplace culture are critical

Leadership and commitment from all managerial levels is essential for successfully establishing, operating and improving asset management within the organization.

Asset management assures that assets will fulfill their required purpose

The need for assurance arises from the need to effectively govern an organization.

Asset Management System

• Context of the

organisation

• Leadership

• Planning

• Support

• Operation

• Performance

evaluation

• Improvement

Fig C1 DIS 55000

ISO 55001

• Specifies the requirements for a management system for asset management – 73 “Shalls”

• Apply in entirety – But Scalable to suit organisation needs

• Focus on physical Assets – but can apply to All Assets

– Eg. non-physical assets such as leases, brands, intellectual property rights, reputation or agreements.

ISO 55001 - Asset Management System Key issues:

• Implements the 55000 Standard Fundamentals

• Organisation chooses which ‘assets’ to apply ISO 55001 to.

• Integration of technical and financial, in particular:

AM decision making processes

Accrual accounting and IFRS

requirements

Uses risk based decision making – that produces a balance between risk, cost

and performance outcomes

55001 – Overview of Contents

• Context of the Organisation

– Needs/Expectations of Stakeholders incl Customers

– Scope of the AM system and to which assets it will apply.

• Leadership and Commitment

– AM Policy

– Roles, responsibilities and authorities

• Planning – for both the AM System and AM

– Risks and Opportunities

– AM Objectives and Strategic AM Plan (SAMP)

Content Cont’d

• Support – for both the AM System and AM

– Resources, Competence, Awareness

– Communication

– Information management

• Operation and Control

– Change management

– Outsourcing

Content Cont’d

• Performance Evaluation

– Monitoring and Review

– Auditing

• Improvement

– Nonconformity

– Corrective and Preventive Action

– Continual improvement

Asset Management Plans

Includes (amongst other requirements):

1. What will be done and by who

2. The timescales for the plan

3. Resource needs for the plan (including financials)

4. Risks associated with the plan and how they are mitigated

5. Review period for the plan

Drivers for Applying the Standards

What will the Standards deliver? • A Framework for a consistent Management

System approach to AM.

• Greater commitment at Senior Management level.

• Better integration of asset management

and financial management.

• More effective asset management

process.

• Better VALUE to stakeholders

Will it replace existing manuals and practice guides such as IIMM?

• My view – Answer is resounding NO!

• IIMM provides the necessary “How To” meet the Standards requirements.

• However the IIMM does need to recognise and be tailored to work with the ISO Standards.

IIMM Update – Status Report

• Commenced mapping process to identify Sections from IIMM against the 55001 Requirements.

• Producing an Addendum to highlight how to apply the IIMM in meeting ISO 55001 requirements.

Will the Standards create a stimulus for new guidance and practice?

• Can if applied appropriately and not just for sake of compliance.

• Lessons can be learned from a more globally consistent approach.

• Promoting integration of management systems can break down silos.

• Look at any gaps between current practice and what is promoted in the Standards.

IPWEA Policy on the ISO Standards

• All infrastructure orgs should consider for benefits from applying a MS approach.

• Governments to promote at level appropriate to business/community needs.

• Not prescriptive – apply to those assets and at level appropriate to stakeholder needs.

• Not just for compliance – part of overall management approach.

• Orgs to decide on appropriate level of certifying compliance.

To Audit or Not for Compliance?

• What will your stakeholders expect?

• What are the costs/benefits?

• Concern regarding the competence

–Auditors in the AM MS field.

• IPWEA in discussions with AMC (and others)

–to establish a technical evaluation process for AM Auditors.

Next Steps on ISO?

• Standards Australia to resolve through MB19 Committee whether to adopt or modify.

• Likely to be in place by beginning of next year.

• IPWEA to run series of 1 day workshops to raise awareness and assist in implementation.

– Highlight Policy

– Using the IIMM as “How To” guide.

What will be your position on the Standards?

• Consider application for pursuit of good practice?

• Voluntarily apply to satisfy stakeholders?

• Apply and look to self-certify compliance?

• Apply with third party accreditation?

• Wait and see what Government or Regulator requires?

Ignore at your peril?

Some other IPWEA Resources

• Practice Notes on Condition Assessment:

– Parks under development

– Buildings PN3 – Facilities Managers

– Levels of Service – out soon

• NATSPEC and AUS-SPEC Documentation:

– Parks and Open Space maintenance

– Building maintenance and operation specifications including Public toilets

http://www.natspec.com.au/Documents/techguides.asp

Workshops for Facilities Managers

• Buildings PN3 - 2 Day

Workshops

– Case Studies

– Hands on Condition

assessments

• Buildings.PLUS FREE Webinar Series

www.ipwea.org/assetmanagement

Your Questions?