ProfessorJoeMathew

AssetInstitute
SlidesbyPeterWayPSM
MemberofMB19StandardsAustraliaMirrorCommittee
Chair,IPWEANAMS.AU

CanthesenewISOAM
standardshelpyou?

Shouldyouapplythesestandards?

WhatsintheStandardsand
Howbesttousethemtoaddvalue

SessionFormat
ISO55000 BenefitsofAsset
Management
TheValueproposition
Toolsforimplementation

StandardsContents
TheISO55000suiteincludes:
ISO55000Assetmanagement Overview,principlesand
terminology
ISO55001Assetmanagement ManagementSystem
Requirements
ISO55002Assetmanagement Managementsystems
GuidelinesontheapplicationofISO55001

TheInternationalWritingCommittee
PC251
has31MemberCountries
has12ObserverCountries

FiveMeetingsofPC251over3years

AustralianRepresentationon
ISOPC251AssetManagement
MainSectorsinvolved:
Academia UWA(Chair)
Water WSAAandAWA
Energy EnergyNetworksAustralia
Infrastructure IPWEA
Mining CRCMining
Industry AMC
Defence ADO
Unions APESMA

Timeframe

OneofthefirstISOMSStandardstobe
publishedwiththeISOcommonHighLevel
Structure

DevelopmentInputs
PAS55anearlycatalyst BUTnewStandardsmore
generic
ISOManagementSystemStandardspreparation
guidelines:
ISOJointTechnicalCoOrdinationGroup
CommonLanguage
Standardterminology

ConsistencywithotherManagementSystems;
Risk
Environmental
Quality

SomeKeyQuestions
Whatbenefitswillthestandardsdeliver?
Howwilltheyintegratewithothermanagement
systems?
Whataretheimplicationsforyour
organization?
Howcantheyprovidebettervalue
formycustomers?

SomeKeyIssues
AllaboutaMANAGEMENTSYSTEMforasset
management
What todoNOT How todoit
CanbeappliedtoANY assets notjustPhysicalassets
Eachorganizationdeterminesscope whichassets
involved
AssetLifecycle approach LifeStagestosuiteach
organization
Strongfocusonrisk management

WhowillusetheseStandards?
Those;
establishing,maintaining,improvinganasset
managementsystem
deliveringassetmanagementactivities
andserviceproviders
partiesassessingconformanceofthe
organizationsabilitytomeetlegal,
regulatoryandcontractualrequirements

Whywilltheybeused?
Becauseitisgoodbusinesspractice
Toprovidebettervaluefromourassets
Tofosterbetterorganizationalmanagement
processes
Todrivecontinuousimprovement
Tosatisfystakeholdersseekingassurance
abouthowwelltheassetsaremanaged
Becauseregulatorsorlegislationdictates
suchandmayberequiresthirdparty
certification
Competitiveadvantage
Insurersmayrequireit

Scopeof55000
ThisInternationalStandardprovidesanoverviewofasset
management,itsprinciplesandterminology,andthe
expectedbenefitsfromadoptingassetmanagement.
BenefitsoftheStandards
Enablesanorganizationtoachieveits
objectivesthroughtheeffectiveand
efficientmanagementofitsassets.
Providesassurancethatthoseobjectives
canbeachievedconsistentlyand
sustainablyovertime.

ISO55001
Specifiestherequirements foramanagementsystem
forassetmanagement 73Shalls
Applyinentirety ButScalabletosuitorganisation
needs
FocusonphysicalAssets butcanapplytoAllAssets
e.g.nonphysicalassetssuchasleases,brands,intellectual
propertyrights,reputationoragreements

ISO55002 AnOverview
ProvidesGuidelinesfortheapplicationofISO55001
Containsexplanatorytextnecessarytoclarifythe
requirementsspecifiedinISO55001
Providesexamplestosupportimplementation
Doesnotprovideguidanceformanagingspecificasset
types.
Followsthesameformatas55001

WhyOrganizationsneedtoControl
andExerciseGovernanceofAssets
Torealize VALUE
Throughmanagingriskandopportunity

Toachievebalance ofcost,risk&performance
AMusesriskbasedapproachtotranslateorganizational
objectivesintoassetrelateddecisions,plans/activities
Cost

Performance

Risk

2.2BenefitsofAssetManagement

improvedfinancialperformance
informedassetinvestmentdecisions
managedrisk
improvedservicesandoutputs
demonstratedsocialresponsibility

2.2BenefitsofAMContd

demonstratedcompliance
enhancedreputation
improvedorganizationalsustainability
improvedefficiencyandeffectiveness

SomeDefinitions
Asset: Item,thingorentity thathaspotentialoractual
VALUE toanorganization
Itemcanbephysicalornonphysical
Thevaluewillvarybetweendifferentorganizationsandtheir
stakeholders
Valuecanbetangibleorintangible,financialornonfinancial
Canbeappliedtoalltypesofassetsandbyalltypesandsizesof
organizations

AssetManagement&AMSystem
AssetManagement:
Coordinatedactivitiesofanorganisationtorealisevalue
fromassetsinthedeliveryofitsoutcomesorobjectives
Involvesbalanceofcosts,risksandbenefits overtime.
AMSystem:
Asetofinterrelatedorinteractingelementsofan
organization,thatestablishassetmanagementpolicies
andobjectives,andtheprocessesneededtoachieve
thoseobjectives.

RelationshipbetweenKeyTerms
Fig1ISO55000
Managing the
Organisation

Asset
Management
Asset
management
system

Asset
portfolio

Coordinatedactivityof
anorganizationtorealize
value fromassets
Setofinterrelatedor
interactingelements to
establishAMpolicy,AM
objectivesandprocesses
toachievethose
objectives

Assetsthatarewithin
thescopeoftheasset
managementsystem

55000 AMFundamentals
Assetsexisttoprovidevaluetotheorganizationandits
stakeholders
Assetmanagementisnotaboutjusttheassets,butthe
valuetheycanprovidetotheorganizationand
stakeholders viaservicesorproducts.
Alignment
Assetmanagementtranslatestheorganizational
objectivesintotechnicalandfinancialdecisions,plansand
activities.

55000 AMFundamentals cont

Leadershipandworkplaceculturearecritical
Leadershipandcommitmentfromallmanageriallevelsis
essentialforsuccessfullyestablishing,operatingand
improvingassetmanagementwithintheorganization.
Assetmanagementassuresthatassets
willfulfilltheirrequiredpurpose
Theneedforassurancearisesfromthe
needtoeffectivelygovernan
organization.

AMSystem Whatisit?
NOTaSoftwareSystem
NOTanInformationManagementSystem
ISasetoftools,including;

policies,
plans,
businessprocessesand
informationsystems,whichareintegratedtodeliver
theassetmanagementactivities

TheAMsystemcoordinatescontributionsfromand
interactionbetweenthemanyfunctionalunitswithin
anorganizationimpactingonassetmanagement

WhatwilltheStandardsdeliver?
AFrameworkforaconsistentManagementSystem
approachtoAM
GreatercommitmentatSeniorManagementlevel
Betterintegrationofassetmanagementandfinancial
management
Moreeffectiveassetmanagementprocess.
Apositivecontributionto
infrastructure/industrialcompetiveness
tothebenefitofstakeholdersincluding
customers

IPWEAToolsandResources

TheIIMM
TheInternationalInfrastructure
ManagementManual(IIMM)has
evolvedovermanyyears.
Widelyacceptedastheinternationalleading
documentoninfrastructureAM.
TheIIMMprovidesvaluableguidanceto
organizationsonhow toimplementgoodAM
practiceforinfrastructureassets.
Includesover100casestudiesdemonstratinggood
practiceacrossawiderangeofassetsandcountries.

IIMMSupplement FreeDownload
Mappingprocesstoidentify
relevantSectionsfromIIMM
againsteachofthe55001
Requirements.
ProvidestheHowtoon
applyingtheIIMMtomeettheISO
55001requirements.
Goto
www.ipwea.org/IIMMSupplement

ConformanceIssues

ToCertifyorNotforConformance?
Whatwillyourstakeholdersexpect?
Whatarethecosts/benefits?
Concernregardingthecompetence
AuditorsintheAMMSfield

IPWEAinvolvedinestablishinga
technicalevaluationprocessfor
AMAuditors

ConformanceCertification
AswithotherISOstandards,many
organizationsmaychoosenottoseek
formalcertification
Certificationcanbeanexpensive
andtimeconsumingprocess

ConformanceCertification
Asaminimum
beawareofthesenewstandards
lookatopportunitiestoalignwithandembedtheprinciples
ofthestandardswithintheorganization
Helpsbringstructureandconsistencytothepracticeofasset
management
Makestheprocessesstrongerovertime.

Whatwillbeyourorganizationspositiononthe
Standards?
Considerapplicationforpursuitofgood
practice?
Voluntarilyapplytosatisfystakeholders?
Applyandlooktoselfcertifycompliance?
Applywiththirdpartyaccreditation?
WaitandseewhatGovernment
orRegulatorrequires?

IPWEAAMMaturityAssessment
CurrentlyaspartoftheNAMS.PLUSProgram
NationalAssetManagementAssessmentFramework(NAMAF)
developedthroughACELGforlocalgovernment
DevelopingaMaturityAssessmentFrameworkforISO55001
Opportunitytoselfassessorutilisethirdparty.

ExampleMaturityAssessmentFramework

SummaryGraphs

DetailedGraphs

IPWEAPolicyontheISOStandards
Allinfrastructureorgsshouldconsiderforbenefitsfromapplying
aMSapproach
Governmentstopromoteatlevelappropriateto
business/communityneeds
Notprescriptive applytothoseassetsandatlevelappropriate
tostakeholderneeds
Notjustforcompliance partofoverallmanagementapproach
Organizationstodecideonappropriatelevelofcertifying
compliance

YourQuestions?
PeterWayPSM
peter.way@ipwea.org
www.nams.au.com