professor joe mathew asset...
TRANSCRIPT
Professor Joe Mathew Asset Institute
Slides by Peter Way PSMMember of MB 19 Standards Australia Mirror CommitteeChair, IPWEA NAMS.AU
Can these new ISO AM standards help you?
Should you apply these standards?
What’s in the Standards and How best to use them to add value
Session Format
• ISO 55000 ‐ Benefits of Asset Management
• The Value proposition• Tools for implementation
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
The International Writing Committee
• PC 251 – has 31 Member Countries – has 12 Observer Countries
• Five Meetings of PC 251 over 3 years
Australian Representation onISO 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
One of the first ISO MS Standards to be published with the ISO common High Level Structure
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
• What benefits will the standards deliver? • How will they integrate with other management systems?
Some Key Questions
• What are the implications for your organization?
• How can they provide better value for my customers?
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 scope ‐ which assets involved
• Asset Lifecycle approach‐ Life Stages to suit each organization
• Strong focus on riskmanagement
Who will use these Standards?
Those;• establishing, maintaining, improving an asset management system
• delivering asset management activities and service providers
• parties assessing conformance of the organization’s ability to meet legal, regulatory and contractual requirements
Why will they be used?• Because it is good business practice• To provide better value from our assets• 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
• Competitive advantage• Insurers may require it
Scope of 55000
This International Standard provides an overview of asset management, its principles and terminology, and the expected benefits from adopting asset management.
Benefits of the Standards • Enables an organization to achieve its
objectives through the effective and efficient management of its assets.
• Provides assurance that those objectives can be achieved consistently and sustainably over time.
ISO 55001
• Specifies the requirements for a management systemfor asset management – 73 “Shalls”
• Apply in entirety – But Scalable to suit organisation needs
• Focus on physical Assets – but can apply to All Assets– e.g. non‐physical assets such as leases, brands, intellectual property rights, reputation or agreements
ISO 55002 – An Overview
• Provides Guidelines for the application of ISO 55001• Contains explanatory text necessary to clarify the requirements specified in ISO 55001
• Provides examples to support implementation• Does not provide guidance for managing specific asset types.
• Follows the same format as 55001
Why Organizations need to Control and Exercise Governance of Assets
• To realize VALUE– Through managing risk and opportunity
• To achieve balance of cost, risk & performance• AM uses risk based approach to translate organizational objectives into asset related decisions, plans/activities
Cost
Performance Risk
2.2 Benefits of Asset Management
• improved financial performance• informed asset investment decisions • managed risk• improved services and outputs• demonstrated social responsibility
2.2 Benefits of AM Cont’d
• demonstrated compliance• enhanced reputation• improved organizational sustainability• improved efficiency and effectiveness
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 TermsFig 1 ISO 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 – AM Fundamentals
Assets exist to provide value to the organization and its stakeholdersAsset management is not about just the assets, but the value they can provide to the organization and stakeholders – via services or products.
AlignmentAsset management translates the organizational objectives into technical and financial decisions, plans and activities.
55000 – AM Fundamentals con’t
Leadership and workplace culture are criticalLeadership 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 purposeThe need for assurance arises from the need to effectively govern an organization.
• NOT a Software System• NOT an Information Management System• IS a set of tools, including;
– policies, – plans, – business processes and – information systems, which are integrated to deliver the asset management activities
AM System – What is it?
• The AM system coordinates contributions from and interaction between the many functional units within an organization impacting on asset management
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.
• A positive contribution to infrastructure/industrial competiveness to the benefit of stakeholders including customers
IPWEA Tools and Resources
The IIMM• The International Infrastructure Management Manual (IIMM) has evolved over many years.
• Widely accepted as the international leading document on infrastructure AM.
• The IIMM provides valuable guidance to organizations on ‘how’ to implement good AM practice for infrastructure assets.
• Includes over 100 case studies demonstrating good practice across a wide range of assets and countries.
IIMM Supplement – Free Download• Mapping process to identify relevant Sections from IIMM against each of the 55001 Requirements.
• Provides the ‘How to’ on applying the IIMM to meet the ISO 55001 requirements.
• Go to www.ipwea.org/IIMMSupplement
Conformance Issues
• What will your stakeholders expect?• What are the costs/benefits?• Concern regarding the competence
– Auditors in the AM MS field
• IPWEA involved in establishing a technical evaluation process for AM Auditors
To Certify or Not for Conformance?
• As with other ISO standards, many organizations may choose not to seek formal certification
• Certification can be an expensive and time consuming process
Conformance Certification
• As a minimum –– be aware of these new standards– look at opportunities to align with and embed the principles of the standards within the organization
• Helps bring structure and consistency to the practice of asset management
• Makes the processes stronger over time.
Conformance Certification
What will be your organization’s 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?
• Currently as part of the NAMS.PLUS Program• National Asset Management Assessment Framework (NAMAF)
developed through ACELG for local government• Developing a Maturity Assessment Framework for ISO 55001• Opportunity to self assess or utilise third party.
IPWEA AM Maturity Assessment
Example Maturity Assessment Framework
Summary Graphs
Detailed Graphs
• 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• Organizations to decide on appropriate level of certifying
compliance
IPWEA Policy on the ISO Standards
