Aust.

AM Collaborative
Group (AAMCOG)
An introduction to ISO 55000
What to do guide
20th October 2014

Overview
Why Bother?
What are the Benefits of ISO 55000?

Key Components of the Code

How it fits in with business processes

What does and ISO compliant business look like?

How do the key aspects of the Code manifest in a business

Moving from theory to delivering benefits

Case Studies
Roadmap to Readiness

Context
My Background:
Utility Industry (esp. Urban Water Services) and
Government (State and Local).

History:
AM in these sectors have evolved from an asset centric
practice to a Whole of business process for delivering
outcomes
ISO 55000 reinforces this process
This evolution has been supported by development of key
technical standards such as IIMM:

Benefits of ISO 55001

What are we trying to achieve?

Improved Business Performance through:

Understanding Levels of Service

Ensuring Consistency in Capital Works Planning
Capacity to deliver (CapX and Op X (LoS)
System Integration

Improved O&M Efficiency

Integration between planning and ops
Benchmarking performance

Risk Management
Better understanding of Corporate risks, (incl Planning, Preparedness, response & recovery)

Governance Framework:
Linking organisational objectives to organisational capacity
Measuring organisational performance

Sustainability of the Business outcomes

Condition (and performance)
Asset knowledge

Key Components of the

Code

ISO 55000
What is ISO 55000?
International Standard for development of an Asset Management System
This means a System of Management and NOT an IT application

General Principles:
a) Assets exist to provide value to the organization and its
stakeholders..
b) Asset management turns the organizational strategic intent into decisions
and actions on assets to realize their value.
c) Strong leadership and an engaged workforce are a key determinant of
value realization... (&)
d) Asset management requires a focus on continual improvement

Scope of 55001

Planning (Cl 6)

Leadership (Cl 5)
Leadership and Commitment to AM
AM Policy (intent)
Responsibilities/authorities assigned & communicated
Alignment w corporate and strategic goals

Setting the Corporate/Strategic goals

Plans and objectives that convert strategic outcomes
to business and tactical action at all levels
Identifies and addresses risk
Communication and engagement

Operations (Cl 8)
Control the process to deliver targeted outcomes across all functions (Service delivery, Maintenance, Capital delivery)
Consider how outsources activities are controlled and integrated.

Support (Cl 7)
Provide resources (skills, IT, $)
Maintain or capability (competence)

Performance (Cl 9)
Monitoring, measurement,
analysis and evaluation

Improvement (Cl 10)

Suitability, adequacy and
effectiveness of AMS

ISO 55000 as a Business Plan ?

Organisational Context:
What is the organisation trying to achieve?
Needs and expectations of stakeholders?
What are our capabilities?

Strategy and Planning:

Leadership and Commitment

Roles/responsibilities across the organisation
Performance Framework; and
Risk Management

Operations
HOW do we deliver outcomes at the coalface

Asset Lifecycle, operational strategies, etc.

Support:
Maintaining Capability (Skills, IT. Financial)

Governance Frameworks:
AM Framework:
Performance Management and continuous improvement

What would an ISO

compliant business look
like?

ISO Compliant Organisation

Organisational Context (Cl 4):
What am I looking for?
Clearly defined understanding and response to:

Statutory obligations (what we HAVE to do),

Stakeholder needs (what our stakeholders WANT us to do)

Business Capacity (what we have the CAPACITY to deliver); and

Industry Trends (what we need to watch in future)

Sound understanding of current and projected levels of service and how these may change over time
A statement of the criteria that drives the businesses AM processes

Where would I find it?

Corporate Plan or Strategic Plan

Customer Charter/Customer Contract
Service Delivery Strategy
Stakeholder Management Plan
AM Policy (intent)

This is the WHY we do what we do

ISO Compliant Organisation

Leadership and Planning (Cl 5 & 6):
What am I looking for?

An AM Framework that highlights the businesses INTENT for AM

A governance structure which clearly allocates organisational AM responsibilities;
A process for identifying, quantifying and transparently managing risk
Clear linkages between the INTENT & the objectives at each level of the organisation

Translating strategy into action

Linking levels of service and cost of service

Where would I find it?

AM Policy
AM Framework
AM Plans
Service Delivery Strategy
Roles/ Responsibility Framework
Risk Management Framework

This is the WHAT we will do

ISO Compliant Organisation

Operational (Cl 8):
What am I looking for?
Sound strategies for the delivery of operational elements of the AM strategy

Planning,
Capital and Service delivery,
Operations/maintenance; and
Asset disposal)

Understanding links between condition and performance/service capacity

Where would I find it?

Operational Strategies (ideally linked to the AMPs)

Procurement Strategy
Infrastructure Standards
Configuration Management processes

This is the HOW we will do

ISO Compliant Organisation

Support and Improvement (Cl 7,9 and 10):
What am I looking for?
HR processes for

Allocating resources necessary for delivering the business targeted outcomes.

Ensuring that the business has the capacity to deliver outcomes
Communicating roles, responsibilities and expectations of staff

A strategy for ensuring that information systems support the business

A performance management framework that ties strategy to functional activities.
A commitment to continuous improvement within the business

Where would I find it?

Org Structure, Governance (Accountability) Framework; roles/responsibility statements

Training Needs Assessment and Development plan
Long term IT/IS strategy
Knowledge Management Strategy
Performance Management Framework;
Quality Management Systems and processes

This ENABLES us to do it

How would ISO

compliant business
deliver benefits?

Realising Benefits
External Drivers:
Improved Stakeholder Confidence and Assurance:
Integrated AM Framework that clearly defines agreed outcomes and outlines how they
will be achieved
In the public sector It is highly likely that the existing state based provisions for AM
will be superseded by ISO 55000.

Internal Drivers:
Improved Business Performance:
Change focus from one of process to outcomes
i.e. are the expectations of our asset base (current and future) sustainable?;

Assist in assessing long term financial sustainability

i.e. optimise the investment in the asset base while also understanding the consequences (and risk) of
changing investment and resources and the impact on service outcomes;

Facilitate a review of how AM services are delivered

e.g. are there benefits associated with outsourcing some of our AM functions? If so, what functions are
appropriate to outsource and why? How may out sourcing affect our risk profile and financial goals?

Realising Benefits
Internal Drivers (cont.):
Improved Governance:
Prompt a review of current AM implementation and identify opportunities to
improve the framework for leadership, management, delegation and
performance in the delivery of AM across the organization
Assist the business better define its risk profile and identify how key risks may
be managed or mitigated.

Systems and Processes:

The holy grail of Asset Management is their ability to transform data into
knowledge. ISO 55000 provides a framework for development of processes
and information sharing to ensure reliable & sustainable AM.

The new ISO standard provides a tool which could be used to

ensure better management of assets and sustainable, efficient
and effective service delivery

Case Studies

Transition to ISO 55000

Case Study 1:
Large Water Service Provider
Seeking consolidation of is AM efforts around ISO 55000
Strong Functional AM Capability but fractured
strategic/corporate AM framework

Goals:
Develop a Strategic AM Plan that moves the business toward
IS0 55000
In particular, moving to an Outcomes oriented process (not an
Asset centric activity)

Transition to ISO 55000

Process:
Corporate Transition guided by its Strategic Asset Management
Plan (SAMP)
Typically a SAMP operationalizes corporate strategy;
In this instance, the SAMP operationalizes the AMS itself

Included assessment of key technical standards (e.g. IIMM and

PAS 55)
Engaged stakeholders (internal and external) in the process
The process highlighted current practice, gaps and solutions.

Outcomes:
A SAMP which operationalizes the AMS, for which staff have buy
in and facilitates the businesses moves from an asset centric
business to more Outcomes oriented processes

Transition to ISO 55000

Case Study 2:
Large Regional Council
V Advanced in their AM understanding and processes
Looking at benefits of ISO 55000

Goals:
Considering a 2 step process:
Compliance with ISO 55000 as a step before
Accreditation to ISO 55000.

Transition to ISO 55000

Process:
Comprehensive review of Corporate AM Framework:

AM Policy, Objectives, Leadership

Service Strategy: Service Design, Planning and Delivery
AM Strategy; AM Planning
AM Performance Framework

Developed a Roadmap for next steps:

AM Business Process Mapping
AM Business Plan

Propose:
ISO 55000 Competence Review as a guide for Accreditation

Outcomes:
ISO 5500 has reinvigorated AM in the organisation
Generated a great deal of interest and improvement opportunities;
Highlighted strengths and opportunities within the business

Roadmap to Readiness?

Questions?