ISO 55000 What You Need To Know Complimentary eBook By James Reyes-Picknell 2014 Conscious Asset We are thought leaders in physical asset management with extensive experience managing physical assets and helping our clients manage them beEer. We have grown over the past ten years in capability and capacity, now delivering consulHng services, coaching and training through both our own sta and talented aliated specialist rms around the world. To Learn More About Our Services Visit www.consciousasset.com

Content Part 1 | ISO 55000 Here At Last! 1 Part 2 | Whats In ISO 55001? 5 Part 3 | Whats In ISO 55002? 11 Part 4 | Should I Bother? 14 Part 5 | ISO 55000 CerHcaHon Requires Competent Asset Managers 18

Part 1 | ISO 55000 Here At Last! Whats in ISO55000? The long awaited ISO 55000 series of standards was ocially released 15 Jan 2014. It comprises 3 separate standards: 1. ISO 55000, Asset Management Overview, Principals and Terminology 2. ISO 55001, Asset Management Management Systems Requirements 3. ISO 55002, Asset Management Management Systems Guidelines for the ApplicaHon of

ISO 55001 Inside ISO 55000 you will nd: an overview of what Asset Management is a descripHon of the benets of Asset Management, a deniHon of assets as , fundamentals so that users of the standards understand why these standards are of

benet, a descripHon of the relaHonship between Asset Management and the Asset Management

System, an overview of the Asset Management System and its elements, a glossary of terminology, a list of other related acHviHes that are addressed in other standards and a diagram showing relaHonships of the key elements of an Asset Management System. The inuence of the BriHsh Standards PAS 55-1 and -2 are evident in how the document and both ISO 55001 and 55002 are structured. Of course PAS 55 was prepared with a long term goal that it would lead to development of an InternaHonal Standard. PAS 55 went through two iteraHons an original issue in 2004 and a revision in 2008. The rst issue was a very dicult read, the second easier and now the ISO is much easier to read, understand and no doubt to apply. As a North American (Canadian) and an author I nd the language and terminology used in the ISO far less confusing, more general, hence more conducive to good communicaHon. Its easier to read!

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Whats in ISO 55000? con$nued ISO 55000 is also generic it can be applied in any industry or context and indeed that is its intenHon. The requirement of the standard is straight-forward. An organizaHon (company, plant, mine, school board, etc.) has a porgolio of assets. It has a corporate strategy (or equivalent) that provides overall objecHves for the enHre organizaHon. Those assets are intended (somehow) to deliver on part of those objecHves. The Asset Management System creates the link from corporate objecHves, through a number of interacHng elements to establish policy (i.e.: rules), asset management objecHves and processes through which to achieve them. Asset Management itself, is the acHvity of execuHng on that set of processes to realize value (as the organizaHon denes it) from those assets. In PAS 55, organizaHonal strategic plan informed asset management policy, then strategy, objecHves and plans. ISO 55000 isnt all that dierent except in how the terminology is used. Here is ISO 55000, we have strategy and objecHves (corporate level) informing policy, objecHves and processes. It is more direct and it uses the word strategy less liberally. ISO 55000 makes it clear that Asset Management is an acHvity (something you do) to implement the Asset Management System (something you dene). The AM System is not just a computerized program as some might be inclined to believe. It may well employ computerized tools and probably needs to, but the AM System is not in itself a computerized tool or system, nor does it need to be. Asset Management is data and informaHon intensive. It touches on nearly all aspects of any business, although many outside of our eld probably recognize that so clearly. Under the heading of leadership the standard points out that this is a mulH-disciplinary and mulH-level endeavor involving the whole organizaHon. There are plenty of examples of physical assets that have had a big impact on companies. For example: Finances: the impact of BPs Deepwater Horizon disaster in the Gulf of Mexico is expected

to cost BP upwards of $42 billion (not to menHon the human, environmental and reputaHonal costs);

The recent Lac MeganHc train derailment and re resulted in deaths, destrucHon of a town, and the bankruptcy of Montreal, Maine and AtlanHc Railway its assets are now being aucHoned;

ProducHon: the BP renery explosion and re in Texas City in 2005 had a 437,000 barrel per day impact in addiHon to its well documented human and environmental impacts.

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Whats in ISO 55000? con$nued Safety: the above examples all involve fataliHes. Sadly, as engineers, our mistakes do ooen

put humans at risk and ooen in large numbers. Even staHc civil assets can make big news like the Montreal Champlain Bridge (now being reinforced aoer years of decay) and the I35W bridge into Minneapolis that collapsed in 2007 killing 13 and injuring 145.

Public Image: BPs image is not one of being green despite all its markeHng to the contrary. One of the companies it acquired (Amoco in 1998) had also suered irreparable damage from its disastrous oil spill (1.6 million barrels) when the ship Amoco Cadiz grounded in Normandy France (1978). Todays environmental awareness is driving hotel chains to upgrade their building porgolios to new LEEDS standards lest they risk loss of business from a younger and more environmentally savvy clientele and even from governments who are insisHng on LEEDS standards being met.

Environment: again, look to the above examples. Failure of even simple systems designed to keep wildlife away from waste ponds can result in both loss of wildlife and reputaHon. Canadas oil sands producers have been regularly accused of neglect, even though in some cases weather has contributed to the losses.

Quality: mass producHon relies heavily on physical assets working correctly to produce within specied tolerances. Failures in those assets can impact on product quality and result in either high rates of rejects or out of spec product reaching the public. In 2008, Maple Leaf Foods, a Canadian food producer sold tainted meat products that resulted in 22 deaths and 57 conrmed cases of listeriosis. Not only was quality impacted, but also costs, public safety and company reputaHon.

Security: in cases where high value products are being processed, failures in physical assets can result in product loss or exposure to risk of theo. In diamond mining operaHons, once diamonds are separated from the Kimberlite ore, they are usually processed in closed systems. As the worlds hardest substance they wear transport piping systems easily and spillage must be cleaned up, all diamonds recovered and the systems repaired. All of those acHviHes require human intervenHon in close proximity to an extremely high value product. Likewise, any failure in any producHon line will expose the product to workers, contractors and possibly others who can take advantage of the opportunity for their own gain.

All of these examples, and there are many more, represent risks that must be managed. Good asset management entails the idenHcaHon, assessment, management and miHgaHon of these risks and their consequences. Risk management is one of the important corporate funcHons that is directly and inHmately impacted by asset management acHviHes. It is also an excellent example of where the integraHon of asset management with other corporate funcHons provides substanHal potenHal benet to companies that adopt these standards. Indeed, asset management, because of its interplay with other corporate funcHons, provides an excellent catalyst for the integraHon of those ooen isolated funcHons. Good asset management can lower a broad spectrum of risks, reduce costs, improve producHon and revenue generaHng capacity.

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Whats in ISO 55000? con$nued ISO 55000 provides an excellent conceptual framework to achieve these improvements. It is of course a voluntary standard there is no regulatory impetus behind it (at least not yet), but its benets are far reaching and potenHally quite substanHal. It is context specic and sensiHve, so it may not be for everyone, but for any company that has a signicant investment in physical assets, it is at the very least worthy of invesHgaHon.

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Part 2 | Whats in ISO 55001? Whats in the new standard ISO 55001? The long awaited ISO 55000 series of standards was ocially released 15 Jan 2014. It comprises 3 separate standards: 1. ISO 55000, Asset Management Overview, Principals and Terminology 2. ISO 55001, Asset Management Management Systems Requirements 3. ISO 55002, Asset Management Management Systems Guidelines for the ApplicaHon of

ISO 55001. This chapter focuses on ISO 55001, arguably the meat of the set of standards where we nd a deniHon of what is required. Guidance on the how comes in ISO 55002. Inside ISO 55001 you will nd the same structure described in 55000 containing explanaAons of what is needed with respect to: OrganizaHonal context Leadership Planning Support OperaHon Performance evaluaHon and Improvement. Keep in mind that the requirement of the standard is straight-forward. An organizaHon (company, plant, mine, school board, etc.) has a porgolio of assets. It has a corporate strategy (or equivalent) that provides overall objecHves for the enHre organizaHon. Those assets are intended (somehow) to deliver on part of those objecHves. The Asset Management System creates the link from corporate objecHves, through a number of interacHng elements to establish policy (i.e.: rules), asset management objecHves and processes through which to achieve them. Asset Management itself, is the acHvity of execuHng on that set of processes to realize value (as the organizaHon denes it) from those assets. ISO 55000 makes it clear that Asset Management is an acHvity (something you do) to implement the Asset Management System (something you dene). 5

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Whats in ISO 55001? con$nued The AM System is not just a computerized program as some might be inclined to believe. It may employ computerized tools and probably needs to, but the AM System is not in itself a computerized tool or system, nor does it need to be. Asset Management is data and informaHon intensive. It touches on nearly all aspects of any business, although many outside of our eld probably recognize that so clearly. Under the heading of leadership the standard points out that this is a mulH-disciplinary and mulH-level endeavor involving the whole organizaHon. Lets look at each part of ISO 55001 separately. In each of the following areas the standard sets out requirements of what should be done to meet what are considered good asset management pracHces. OrganizaHon context: An organizaHon determines its external and internal drivers and constraints anything relevant to its purpose and ability to achieve the outcomes of its AM system. The Strategic Asset Management Plan (SAMP) includes AM objecHves (linked to corporate strategic intent and objecHves). An organizaHon must determine and understand which stakeholders are relevant to the AM system, their requirements and expectaHons, the criteria for AM decision making, stakeholder requirements for nancial and non-nancial informaHon and its reporHng both internally and externally. The scope of the AM System must be dened. What are the boundaries of its span (i.e.: to what does it apply?) This considers the above drivers, constraints, requirements and any interacHons required with other management systems. There are requirements to document all of this and to conHnually improve the AM System, describing it all within a well-documented SAMP. Leadership: The standard describes three main requirements leadership and commitment, policy and organizaHonal roles, responsibiliHes and authoriHes. Leadership and commitment requires that top management ensure: The AM Policy, SAMP and objecHves are established and compaHble with organizaHonal

objecHves, AM system requirements are integrated into the organizaHons business processes, Resources are available, CommunicaHon of the importance of eecHve AM and of conrming to AM System

requirements,

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Whats in ISO 55001? con$nued The AM system achieves intended outcomes, That personnel contribute to the eecHveness of the AM system, Cross-funcHonal collaboraHon, ConHnual improvement, That support and other management roles demonstrate leadership and That risk management is aligned with the organizaHons risk management approach. Much of this is arguable just good business management pracHce in a complex business having separate funcHonal areas that must ulHmately work towards common goals in each and all areas. An AM Policy must be established that is appropriate to the organizaHon, provides a framework for seung objecHves and saHsfying them, as well as conHnuous improvement. It must be consistent with the organizaHons plan and policies, be appropriate to the organizaHons assets and operaHons, be available, communicated and periodically reviewed, updated if needed. Top management must also ensure that roles, responsibiliHes and authoriHes are assigned, communicated and eecHvely executed to: Establish and update the SAMP, Ensure the AM System delivers, Ensure it complies to the ISO itself, Ensure the AM System is suitable, adequate and eecHve, Establish and update AM plans (as needed) and Ensure reporHng on performance of the AM System to top management.

AM It is not something that can be abdicated to lower levels of management. DelegaHon does not absolve top management of responsibility nor parHcipaHon. Planning: Planning is a key element of the AM System it is where the details of how the organizaHon will deal with risks, opportuniHes and its AM objecHves. Plans describe what the organizaHon will do to execute on AM. The standard outlines a number of requirements that those plans should meet / consider. As in any endeavor, there are both risks and opportuniHes. Those must be idenHed and addressed to ensure the AM System can achieve its intended outcomes, to prevent or reduce undesired eects and to achieve conHnual improvement. Plans are needed to address both the risks and opportuniHes, considering how they may change with Hme and organizaHonal context. Again, those acHviHes must also integrate with AM System processes and in turn with other organizaHonal processes.

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Whats in ISO 55001? con$nued ISO 55000 provides an excellent conceptual framework to achieve these improvements. It is of course a voluntary standard there is no regulatory impetus behind it (at least not yet), but its benets are far reaching and potenHally quite substanHal. It is context specic and sensiHve, so it may not be for everyone, but for any company that has a signicant investment in physical assets, it is at the very least worthy of invesHgaHon. ObjecHves are established for all relevant funcHons and levels considering requirements of stakeholders and other nancial, technical, legal, regulatory and organizaHonal requirements. Those objecHves should be aligned with organizaHonal objecHves, consistent with the AM policy, be established and updated using AM decision making criteria, be included within the SAMP, be measurable, monitored, communicated, reviewed and updated as appropriate. All of this should be documented. Note that this is a recurring theme through the standard. ObjecHves require plans for their achievement and those plans should include the various acHviHes, resources and other nancing. Like the objecHves the plans must be aligned and consistent with the rest of the AM system. The plans should determine and document: Decision making and prioriHzing methods and criteria, Processes and methods for managing assets throughout their life cycles, What will be done, Resources, Time frames, EvaluaHon criteria, An overall Hme horizon for the plan, Review periods, AcHons to address risks and opportuniHes (idenHcaHon, assessment, signicance and

acHons to deal with those risks and opportuniHes). Risk management for assets must be considered in the organizaHons overall risk management approach and conHngency planning.

This is arguably the area where you will see the greatest opportunity to integrate in a meaningful way with other established organizaHonal processes and methods, especially risk management. Support: AM does not exist in a vacuum. CooperaHon and collaboraHon with other funcHonal areas will be required for eecHve AM and execuHon of the AM System. Resources are needed to establish, implement, maintain and conHnually improve the AM system itself and collaboraHon outside of the AM organizaHon or funcHonal area will be required. Those doing the work must be competent. While that should go without saying it is stated explicitly that persons must be educated, trained and experienced and where needed acHon is required to ensure they are. EecHveness of the acHons take (e.g. training) should be evaluated and documented informaHon is retained to provide evidence of competence. Periodically the competency needs should be evaluated and updated as needed.

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Whats in ISO 55001? con$nued The organizaHon must establish its own informaHon requirements to support assets, AM and the AM System in achieving the organizaHonal objecHves. The informaHon should consider risks, roles, responsibiliHes, processes, procedures, acHviHes, informaHon exchange, impact of quality, availability and management of informaHon on decision making. InformaHon requirements are dened in detail including specic informaHon aEributes, quality requirements, how and when collecHon, analysis and evaluaHon will take place. This is all managed through dened processes and it must all align with other organizaHonal processes (nancial and non-nancial) as well as uHlized terminology (to avoid confusion and miscommunicaHon). InformaHon must be consistent across its various uses the concept of enter once, use many Hmes comes to mind. A page describes documentaHon requirements but it boils down to having a formal document management system in place for all the informaHon (processes, plans, procedures, methods, etc.) described in the standard. DocumentaHon must be kept current and only those current versions available for use where and as needed. OperaHon: This secHon outlines the requirement to plan, implement and control the processes needed to meet and implement all the plans. Criteria for the processes are determined, control is applied, informaHon is documented to ensure condence and evidence is established and to treat and monitor risks. Change must be managed. Change presents risks, both temporary and permanent that must be managed. There is a requirement to manage these risks and miHgate any adverse eects. The standard recognizes that outsourcing of acHviHes is not uncommon. The risks associated with outsourcing must be idenHed and managed. Outsourced acHviHes must sHll be managed, again as with top managements responsibility, acHviHes can be delegated through outsourcing but responsibility cannot be abdicated. Performance EvaluaHon: OrganizaHons must determine what needs to be monitored and measured, the methods to monitor, measure, analyze, evaluate and validate results, when it shall be done and what results should be analyzed and evaluated. This is used to report on asset performance, asset management performance (including both nancial and non-nancial results) and the eecHveness of the AM system itself including risk management. Evidence of the results of performance management acHviHes is kept as documented informaHon. Internal audits are required at planned intervals to ensure AM System conformance with organizaHon requirements, the requirements of the ISO 55001 standard and that the AM System is eecHvely implemented and maintained. An audit program is established including frequency, methods, responsibiliHes, planning and reporHng, consideraHon of the processes and results of previous audits. Each audit has dened audit criteria and scope, auditors should be objecHve and imparHal, results are reported to management and documentaHon is retained.

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Whats in ISO 55001? con$nued Top management has responsibility to review the AM System periodically to ensure its suitability, adequacy and eecHveness. Audits and top management reviews lead into the conHnual improvement process and like all else in the system, everything is documented. Improvement: Non-conformiHes occur if the AM system or elements of it are not followed. Incidents are when a failure of some sort results from an inadequacy or non-conformity within the system. AcHons to control and correct are required along with dealing with consequences. An evaluaHon of the need to eliminate the cause is required to ensure that it does not happen again or elsewhere. Once decided upon, acHon is taken to correct and those acHons are reviewed for eecHveness. If necessary, the AM system should change. Again, documented informaHon is required. PrevenHve acHons are required. The organizaHon should establish processes to idenHfy potenHal failures in asset performance and evaluate the need for prevenHve acHon. And that is the extent of the requirements. For those of us familiar with good management pracHces, these requirements echo those pracHces nicely, albeit with an AM twist. The standard also contains an annex lisHng subject areas that are addressed in other published internaHonal, regional or naHonal standards, but does not tell the reader where to nd them. It merely lists the topics, but that does provide a good point at which to search for other potenHally relevant standards in your area or jurisdicHon. Conclusion: ISO 55001 does a good job of outlining what acHons should be taken by any organizaHon that wishes to manage its physical assets responsibly. While much of it is common sense, it is not always pracHced and this standard provides reminders of what might be missing. A common theme is that everything is documented including the processes, procedures, etc. and the measurements and other reports that provide evidence of compliance. Clearly there is a need to collaborate with other funcHonal areas within the organizaHon, most notably nance, human resources, informaHon management (IT / Systems) and top management.

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Part 3 | Whats in ISO 55002? Whats in the new standard ISO 55002? The long awaited ISO 55000 series of standards was ocially released 15 Jan 2014. It comprises 3 separate standards, and we're covering all of them in this eBook. 1. ISO 55000, Asset Management Overview, Principals and Terminology - 2. ISO 55001, Asset Management Management Systems Requirements 3. ISO 55002, Asset Management Management Systems Guidelines for the ApplicaHon of

ISO 55001 This third part of our eBook, focuses on ISO 55002, the guidelines. Inside ISO 55002 you will nd the same structure described in 55000 and 55001 including use of the same paragraph numbering as 55001 to make cross referencing easy. I wont reiterate the content of the second paper on ISO 55001 here it is recommended that it be read before reading this. If you are familiar with the UK PAS 55-1 and 55-2 specicaHons, then you will recall that 55-2 (also guidelines) not only cross reference 55-1, they include the actual text in red boxes. It is possible to read only PAS 55-2 and know exactly what is said in 55-1. While ISO has done a good job of cross referencing, it has not included the exact text. You cannot probably get away with buying only the ISO 55002 document on its own, but (like PAS 55) the authors have made it easy to avoid jumping back and forth between documents. ISO 55002 does a very nice job of melding the high level requirements of ISO 55000 (including general explanaHons of why) with the more specic requirements of what is needed from 55001 and added considerable value in the form of how and helpful Hps, ideas and pointers on what to consider. ISO 55002 could almost be used as a training course because it gives sucient detail of how to go about meeHng the requirements of 55501 to inform someone who is somewhat new to asset management.

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Whats in ISO 55002? con$nued Top management has responsibility to review the AM System periodically to ensure its suitability, adequacy and eecHveness. Audits and top management reviews lead into the conHnual improvement process and like all else in the system, everything is documented. In reading ISO 55002 it is possible to get a good understanding of why the standards exist, what they require and what sort of things are needed to implement then. Having said that, it is no idiots guide the reader must understand good management pracHces and would certainly benet from having a technical background, given the subject maEer. In ISO 55002 the reader also gets claricaHon on what sort of documentaHon is / is not needed and where it may be found. Although there is talk of Policy, Strategic Asset Management Plan, objecHves, etc., there is clearly no requirement to build a bureaucraHc empire. In poinHng out where informaHon may be found or included ISO 55002, clears up (at least in this authors opinion) the confusion that lead to criHcism of PAS 55-1 and 55-2 being overly bureaucraHc. While the informaHon must be available and documented, there is a great deal of laHtude on just where the informaHon resides. What is likely to be the biggest challenge to users of the standard is that whilst they may well be doing much of what the standards call for in terms of acHon in the eld, they may not have it well documented. Tying it all together will require some eort, as it did for PAS 55, but there are a number of helpful Hps that will help keep the level of eort reasonable. Most of ISO 55002 expands on the requirements of ISO 55001, adding descripHve text, examples, Hps and things to consider. It is not prescripHve there will sHll be a need to interpret the requirements and put them into acHon in a way that makes sense to your organizaHon, but the standard goes a long way towards making that easy. Its not quite a checklist, but you could use it as such with a bit of cauHon. If anything, it has more in it than many organizaHons will need because it is generic. If it were tailored for specic industries it might be a shorter document. The areas where the most elaboraHon on the requirements of ISO 55001 can be found are the areas where experience (much of it with PAS 55) reveals that companies are likely to need the most help. DocumenHng processes, etc., was a weak point in eorts to implement PAS 55. Companies had processes, ooen good ones, but they were not well documented nor consistent across the organizaHon. While they were doing the right things, they were not doing them the same way in all cases, nor could they show an outsider what they did.

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Whats in ISO55002? con$nued Similarly, record keeping was typically weak. In PAS 55 term records is used to mean informaHon that proves compliance (e.g.: readings, measurements, etc. that are recorded as evidence), while documentaHon meant the descripHons of what should be done (e.g.: policy, procedures). In ISO 55000/1/2 that disHncHon is not quite as clear. All of it is referred to as informaHon and the records are documented informaHon. All in all, ISO 55002 is a very handy document that delivers exactly what its Htle suggests guidelines. It is neither prescripHve nor confusing and it provides a lot of useful Hps and ideas. Anyone considering implementaHon of the ISO 55000 series standards and especially those who are leading the compliance eort within companies and other organizaHons will nd ISO 55002 very useful, perhaps the most useful document of the three.

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Part 4 | Should I Bother? Should I Bother With The New Standard? AM is a whole life cycle approach to managing the assets we depend upon in modern life for just about everything. Our electricity, water, gas and telecommunicaHons all come to us via some form of physical asset. We use physical assets to travel on, in, over and through other physical infrastructure assets. We live, work, entertain, heal, learn, teach, govern and play in physical infrastructure assets. We manufacture in physical plants. We service our physical assets using other physical assets. Physical assets are integral with modern life and have been ever since man invented his rst tools. It makes sense to take care of them and to do so in an ecient and cost eecHve manner. Aoer all the Hme and money we save from taking care of our assets can be spent in other pursuits. Over Hme the complexity of those assets has grown and with it the level of knowledge and skill needed to take care of them. Maintainers ooen lament the inaEenHon to maintenance concerns shown by designers of physical systems. Designers, ooen highly specialized, lack the experience of a maintainer but know how to design if the requirements are well stated and clear. Throughout their useful life assets will require repair, upkeep and eventual replacement. What is the best maintenance program? What is the ideal age at which to replace the assets? What should we replace them with? How can we best uHlize new technologies? What risks are created when the asset fails? What can we do to idenHfy, manage and miHgate those risks? These challenges and quesHons we must answer or pay a high price for our ignorance. Good Asset Management gives us a framework to answer those quesHons and deal with those challenges. Thats not to say that AM is new. It is not, but it has not always answered all our quesHons and met these challenges as eecHvely as it might. When systems fail unexpectedly or take inordinate long Hmes to repair, when the costs of keeping a system funcHonal are much higher than we anHcipated, when we cant get the performance we expect, we are seeing signs of Asset Management that has fallen short.

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Should I Bother? con$nued Good Asset Management enables us to: Spend capital money wisely, ensuring the maximum return on investment or value for the money in the long term, Achieve anHcipated producHon levels consistently, Achieve desired service levels consistently, Manage and miHgate risks to producHon, service levels, costs, revenues, health, safety, environment, security and public image, Do all of the above at a safe minimum cost, Replace assets at a point in Hme that ensures the minimum life cycle cost to the organizaHon, Ensure that all the needed informaHon to sustain our systems is up to date, available where and when needed and to those who need it. If we were doing this consistently today we would see fewer disasters such as the train derailment, fataliHes and environmental harm done in Lac MeganHc, the losses and damage done when the Deepwater Horizon suered its explosion in the Gulf of Mexico and the collapse of bridges such as I35W in St. Paul / Minneapolis. The best examples of good AM today (outside of military applicaHons) are probably found in the airline industry and nuclear power generaHon. Even there, we make mistakes and suer consequences from natural and man-made disasters, but far fewer than we might otherwise. The airline industry today crashes planes at a rate that is roughly 1 / 120th the rate it was 40 to 50 years ago. UHliHes (gas, electric, water, telecoms) have long provided reliable service over long periods of Hme, generally suering outages only during natural disasters. The tradiHonal approach, well known to reliability engineers, is to build in redundancy. If one fails, the other takes over. In nuclear power we even see mulHple levels of redundancy because of the serious consequences of some failures. While successful, that approach is also expensive. It means doubling up (or more) on assets that cost a great deal of money. That spending is becoming unsustainable and uHliHes are being forced to consider alternaHves. They are being squeezed between the rates they can charge and the amounts they can spend. Where regulated, those pressures are immense. Good AM, and ISO 55000 / 1 / 2 wont solve the problems for us, but they do provide a framework which enables us to make the best possible choices and deal, as best we can, with those challenges. It is an enabler. It requires us to consider factors we might otherwise or tradiHonally ignored. It makes us think a bit more. It forces us out of the, weve always done it this way, mindset. Businesses focus on the products they produce, the services they deliver. Likewise, governments and other bodies focus on whatever they deliver. Making sure we choose the best opHon when we are considering a new system, making sure we design the most cost eecHve maintenance program, making sure we have a plan for refurbishment and replacement, etc., are not top of mind in most organizaHons. Even organizaHons that make extensive use of physical assets (e.g.: a mine, an electric uHlity) tend to focus their aEenHon on what they do, not what they do it with.

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Should I Bother? con$nued Physical assets are ooen taken for granted and the more reliable they get, the more that tends to happen. The more complex they get, the more there is that can go wrong. We make beEer use of materials through very sophisHcated engineering leaving less room for error. Managing assets today is more complex than it was 10, 20, 50, 100 or more years ago. Yet in many organizaHons, the management of those assets is sHll carried out as it was years ago. Managers responsible for those assets learned their business years ago. The new internaHonal standards will challenge their thinking and drive a search for new soluHons to problems that some organizaHons may not even be aware they have (unHl it is too late). ISO 55000 / 55001 and 55002 will sHr this pot, challenge the status quo and lead to a whole new regime of asset care. Is it going to be expensive? How can we aord it? Good asset management is all about doing the right things the right way. If that is dierent from what is being done today, it will save money and likely eort. In the long term there should be no doubt that good AM, applied as the standards say, to the extent appropriate for your organizaHon, will result in less spending and more output from those assets. In the short term however, there is a probably a hurdle to cross, but it may not be as signicant as you might think. Most organizaHons managing physical assets already have a good deal of the pracHces as described in the ISOs in place. They may not be used consistently, not documented, records showing compliance may not exist but the basic pracHces, in many cases are already there. The eort to align with ISO 55000 need not be onerous nor without benets. Imagine a company with several plants, each doing its own engineering and maintenance their own ways. By becoming consistent they can now share resources, share knowledge and experience. The most eecHve processes among the plants can be chosen for all to use (assuming it is appropriate to all of them). There is a mulHplier eect you are using the creaHvity and knowledge of more people to solve a common challenge. In working with mulH-site organizaHons, Ive consistently seen the benets of collaboraHon and teamwork. It doesnt usually result in cookie cuEer soluHons either. Rather, basic processes and methods are the same with local variaHons to account for local dierences. Instead of burdening each site with a project, they share the workload a real help in todays lean economy. InformaHon is going to be one challenge in most organizaHons. They have it all over the place today and it is not always accessible nor up to date when needed. Good AM would require that informaHon to be brought up to date and made accessible to those who need it on an as needed basis. Maintenance could actually idenHfy the correct parts for xing equipment! Engineering could rely on drawings of the plant to be accurate representaHons of what is installed and operaHng!

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Should I Bother? con$nued Geung that informaHon cleaned up is a bit of eort. Companies are ooen swimming in data that they cannot hope to use without some sort of data mining project. The very term, data mining, implies that there is a lot of waste to be sioed through. Why? The lack of fore-thought that created that is symptomaHc of the lack of good asset management pracHces. Good AM promises to do a lot of good. There will be some short term pain in aligning to the standards and geung thinking aligned with those good pracHces, but the payos will be substanHal. Long term gains are almost certain. Short term gains, if the transiHon is handled well, can easily pay for the cost of transiHon. In many cases, the transiHon need not be as painful as you might expect. ExisHng pracHces and processes have served companies well for years. They dont need to change overnight nor do they necessarily need to change. Choose the best of what you have, standardize it, document it and then follow it. Whats to be lost? Only ineciency and ineecHveness.

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Part 5 | ISO 55000 CertiGication Requires Competent Asset Managers Learn About ISO 55000 CerHcaHon With the advent of ISO 55000, 55001 and 55002 there will naturally be a desire for some companies to get cerHed. In fact in the UK, the rst cerHcaHon by the BriHsh Standards InsHtute has already taken place and less than a month aoer the standards were ocially released! If your organizaHon was already PAS 55 cerHed, it should be a small leap to ISO cerHcaHon aoer all, it was based on PAS 55 and if anything, it appears to be a bit less onerous as well as beEer suited to broader applicaHon. CerHcaHon against ISO 55001 applies only to the management system for a facility, installaHon, company or other porgolio of assets. It DOES NOT apply to people, but people can be cerHed as Asset Managers. You can self-assess and self-cerHfy but that could appear somewhat self-serving to a third party that may have reason to doubt your word. To get around that you need an independent assessor. ISO 55001 cerHcaHon must be carried out by an accredited cerHfying body. It is not just anyone that can do it. Another standard comes into play. ISO 17021-5 (Conformity assessment -- Requirements for bodies providing audit and cerHcaHon of management systems -- Part 5: Competence requirements for audiHng and cerHcaHon of asset management systems), is the conrmed requirement for assessors and cerHfying bodies to have specic asset management knowledge to carry out the requisite audits. Thats a good thing too if the assessor meets the requirements of ISO 17021-5, then your assessor will know what they are looking at and be quite capable to determining what is good or compliant to ISO 55001 in your Asset Management System. 18

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ISO 55000 CerHcaHon con$nued The ISO 55000 series requires that you not only demonstrate you have processes (similar to those required by quality standards) but that you also follow those processes. This is a key improvement on other ISOs. Its been a long standing joke that a company can comply with all the quality standards and boast about it all they want while sHll producing junk. Sadly there has always been some truth behind that. ISO 55000 was wriEen with that aw in mind. It does not permit you to get away with having the documented processes that do not reect good pracHce. In that sense it goes well beyond the quality standards. The requirements that a cerHer must meet are consequently more stringent. This puts pressure on cerHfying bodies that already exist they may not have those competent asset managers just yet. We expect that you might see some hiring to close that gap. Its unlikely an auditor who knows quality and other ISOs will also be fully conversant with Asset Management pracHces. OrganizaHons like BSI, DNV, NSF and others who are well known for their cerHcaHon acHviHes may need some ramp up Hme (although we know BSI has already issued at least one cerHcaHon in the UK). Given the newness of the standards there is liEle in the way of training that is specic to it aimed at helping end users idenHfy what they must do to get their organizaHons compliant. That will change quickly. Our own rm is in the process of becoming capable of delivering training for the Asset Management Academy (UK) and ulHmately to cerHfy Asset Managers under the InsHtute of Asset Management (IAM) endorsed training scheme here in North America. In regulated industries (water, gas, electricity, telecoms) the regulators have been watching internaHonal developments closely. MunicipaliHes have taken a keen interest as well. All of them have mandates to ensure services are delivered safely and at low costs. If they are smart about it, they will make ISO 55001 compliance mandatory and let their uHliHes know that this should lower their costs, not increase them. Rates for delivery of electricity, gas, etc. should in fact be lowered by it. Whether or not the regulators have the gumpHon to take that stand remains to be seen, but it is their mandate to take a strong stance to lower rates paid by the public. In no way should uHliHes who gain compliance require more money to do it. They may need to pay for help as they align themselves to the standards but once alignment is achieved the benets should begin paying for the eort. Thats a challenge for cash ow management, but doesnt warrant new money. Sadly the incenHves for uHliHes have, at least in some cases, encouraged runaway capital spending to replace aging assets rather than wise spending on maintenance to opHmize the life cycle costs. Mindsets there are likely to have to change as well! By being independently cerHed, uHliHes will be in a posiHon to righgully say that they are managing their assets well and to a globally recognized standard. It will mean that they are delivering value, opHmizing Life Cycle Cost, spending capital wisely and maintaining to a high standard so services are delivered as reliably as pracHcable.

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ISO 55000 CerHcaHon con$nued MunicipaliHes have been demonstraHng a great deal of interest. Clearly they want to keep tax hikes down in the interests of their poliHcians geung re-elected. Unlike the uHliHes, they have some self-interest at stake by keeping costs down and that is always a good moHvator. Through independent cerHcaHon they could make some preEy strong claims to competency and good husbandry of the assets in their charge. Good life cycle asset management pracHces should ensure that municipaliHes get the most value for what they spend over the long term and not just spending as liEle as possible and leaving a long term headache for the next elected regime or the ones aoer. Geung cerHed will entail having an accredited assessor that meets the requirements of ISO 17021-5 to come in and perform an audit. He / she will look for evidence of your documented processes, etc. and evidence that you are following those processes. Theyll want to see AM Policy, ObjecHves, Plans, your processes, informaHon management systems, etc. Theyll want to see that you are following conHnuous improvement processes through an audit plan and that you have a mechanism in place to ensure improvements to asset management and the asset management system are carried out. Once saHsed that you are doing all that and have it in place, well documented, that you are doing it consistently theyll cerHfy you. Those organizaHons that have been doing what they can to align with PAS 55 (even if they havent been aiming at cerHcaHon) are likely to be ahead of the game. The requirements of PAS 55 are not at all dissimilar from ISO 55001. Experience in the UK and elsewhere that PAS 55 was used revealed that documentaHon, consistency and record keeping are all likely to be a bit weak. Processes of the various management systems, engineering, risk, quality, maintenance, etc. are unlikely to be well integrated at the outset. Our management habits and performance management regimes here in North America and elsewhere have tended to promote silo thinking and behavior. Departments ooen dont collaborate well if at all in some extreme cases they even work at cross purposes. That is ooen evident in the areas of inventory management and maintenance where poor informaHon sharing and lack of collaboraHon can create a host of operaHonal problems. This sort of dissonance isnt restricted only to those two areas. Lack of collaboraHon is ooen very easy to spot. Where it impacts on, or is impacted by, Asset Management that will need to change. ISO 55001 and its implementaHon will provide an excellent catalyst for integraHng those various disparate management systems. The result should be less bureaucraHc and benecial in terms of ensuring overall corporate goals are met more eciently and eecHvely. We can expect companies to go through a period of reecHon on their processes and systems. That will be followed by some form of re-engineering (not downsizing real re-engineering) of their processes aoer theyve determined where the various touch points are and how they need to be working more smoothly. Consciousasset.com

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ISO 55000 CerHcaHon con$nued Theyll need to document pracHces that in many cases will already be in place and established. Weve all experienced dierent ways of doing the same things in dierent departments. Work requests for repairs are a good example of something that, despite the best eorts of maintenance managers, ooen get handled in a variety of ways. Department heads need only complain. Operators are forced to complete work requests on a computer. Other users who are unfamiliar with the work request screens can call a dispatcher Chances are, if the organizaHon has any sort of size, it will need to determine the best of several dierent ways of doing just about everything, seEle on a single ecient and eecHve process, document it well and then put it into pracHce at all locaHons. Training and enforcement of new pracHces is likely to follow. If an organizaHon wants to align with, not necessarily be cerHed to, ISO 55001, theyll sHll have a bit of work to do. UlHmately it will pay o in eciencies and increased eecHveness but in the short term it may entail a bit of change pain. Expect it. To start, have an assessor come in and carry out an audit. This assessor need not be from a cerHfying body but you do want someone familiar with the standards and also with an established track record in asset management. In other words someone who could comply with ISO 17021-5. The intent of this audit isnt to get cerHed, it is to nd out what work is needed. You can do this yourself of course, but do you really understand the standards well enough to do that competently? A self-assessment will get you started on the obvious areas of non-compliance but it may not take you down the complete path. One consideraHon is that if you are not in the business of audiHng nor the business of helping organizaHons deal with changes on a large scale, there is a good chance you wont be enHrely successful. That sort of work is not your strength. There is no shame in geung outside help to do something that isnt your main business or core competency. Once that review is completed youll know what is required. A plan will be needed to correct any deciencies or non-compliances and that plan will require execuHon. Its no dierent than any other improvement iniHaHve except that in this case youll have a goal in mind that can actually be checked and veried by an independent third party assessor, and if they are compliant to ISO 17021-5, they can then cerHfy you against ISO 55001. The accredited assessors who are empowered to cerHfy you must be independent. They should not be in a posiHon to benet from your preparaHons for cerHcaHon. Any outside help you get to do that cannot cerHfy you against the standard. Of course an organizaHon accredited to cerHfy you can help you prepare for cerHcaHon, but you will need to get an independent third party to actually carry out the audit and cerHcaHon. For example, you could invite our rm to help your organizaHon get ready for cerHcaHon and wed gladly help, but we cannot cerHfy you ourselves. We can however deliver training and administer the cerHcaHon of individuals as Asset Managers.

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ISO 55000 CerHcaHon con$nued ISO 55001 cerHcaHon isnt required by any regulatory or other body just yet but we can expect that will come in Hme. It is likely to happen in regulated industries and municipaliHes fairly soon but as disasters conHnue to strike and reveal asset management pracHces that were wanHng, we can expect a call for some standards to be followed even in other industries. One that comes to mind is railways. In North America we are increasingly shipping large volumes of highly ammable, volaHle and toxic substances by rail. Pipeline construcHon is increasingly subjected to poliHcal meddling and seemingly endless reviews so trains are an alternaHve for bulk shipping. Recently there have been several very high prole derailments with res and fataliHes. In Canada the disaster at Lac MeganHc is a prime example. To blame are arguably insucient operaHng pracHces, poor watch-keeping, parking on an incline leading into a populated area (with a curve in the line), lack of communicaHon between the re department and the train operator, carriage of a volaHle substance that didnt behave as expected, lack of tesHng protocols, lack of regulaHon covering the carriage of hazardous substances, poor labelling of whats in the cars, poliHcal nger poinHng, criminal or near-criminal business decisions, declaring bankruptcy to get o the hook, inadequate insurance coverage, just plain greed and so on. That train had crossed about half of the conHnent and arguably that same disaster could have happened anywhere along its route. Not long aoer Lac MeganHc another derailment involving the same crude from the same eld occurred in the US mid-west near Casselton, ND, in Jan 2014 another happened near Plaster Rock, New Brunswick and another in Mississippi. A recent study shows that train derailments typically spill more oil than pipeline ruptures. Perhaps ISO 55000 oers at least part of the soluHon to this problem. Bridges are geung old in North America. Several have collapsed and some with fataliHes. We all know they deteriorate with age but we dont know when they will be weakened to the point of collapse. Money for upkeep is ooen cut because spending on maintenance isnt sexy and doesnt win votes. Money for new construcHon dierent story. But rebuilding all the bridges on the conHnent is going to be expensive its not a viable opHon for cash strapped, indebted governments with resHve consHtuents already feeling the double whammy of a bad economy and high taxes. Again, perhaps ISO 55000 can help at least with part of the problem. Other areas where applicaHon of good Asset Management can help include airports (most are horribly crowded and struggling to keep up with air travel volumes that were predicted years ago), roads in larger ciHes that cant handle the volumes of car trac due to poor transport infrastructure planning (or lack of it). Integrated and mulH-disciplined collaboraHon can certainly help of course the poliHcians will need to get out of the way too. Even private industry can benet. ISO 55000s aim of opHmizing the value we get from our assets, doing it safely and in an environmentally friendly way has got to be consistent with what every company that uses physical assets wants to achieve. Why live with the conHnuance of mediocrity in the face of sH compeHHon from less expensive places to do business elsewhere in the world?

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ISO 55000 CerHcaHon con$nued In some cases it is liEle more than shipping costs over long distances that keep oshore compeHHon oshore and producHon faciliHes alive in North America. But those costs wont act as a protecHve barrier forever. Geung smart will help ISO 55000 provides the framework. The Hme for good asset management, compliant to a recognized and well thought out standard is here. ISO 55000, 55001 and 55002 provide that standard. They provide an opportunity. Geung there will be a bit of work not onerous, but not insignicant either. It will force collaboraHon on a level that is rarely achieved today in most organizaHons. It will require people to change perspecHves and paradigms. It will force dinosaurs to look at newer and beEer ways to do things. Its Hme has come. Save money, make more, provide more reliable services whats not to like about it?

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ISO 55000 What You Need To Know Complimentary eBook By James Reyes-Picknell 2014 Conscious Asset We are thought leaders in physical asset management with extensive experience managing physical assets and helping our clients manage them beEer. We have grown over the past ten years in capability and capacity, now delivering consulHng services, coaching and training through both our own sta and talented aliated specialist rms around the world. To Learn More About Our Services Visit www.consciousasset.com

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