Asset Management an IAM Perspective

Transcription

1 Asset Management an IAM Perspective David McKeown Chief Executive 22 May 2013 AMT-Sybex Conference, Stratford-upon-Avon

2 The Institute Individual & Corporate Members Finance / accountants as well as engineers Source of good practice & cross-industry thinking. Alliancing and collaborating world-wide

3 Agenda Assets: their management and purpose So why did the IAM initiate ISO55000? Where are we right now? What will be different in an ISO55000 world? What is the IAM doing to support Individual and Corporate Members and the public generally?

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24 What about your assets? When you maintain your home, what are your criteria? Performance? Level of Service? Spend the money on a holiday instead! Do you do it out of OPEX or CAPEX with a loan? How do you value it / cost it? Historic / Fair Value? Or outcomes more than valuation?

25 What about YOU? What is your useful life? What is your remaining life? Do you have a strategy or even an asset management plan? Who for? Top management? Done a report card lately? What is your value!!!!!!

26 Agenda Assets: their management and purpose So why did the IAM initiate ISO55000? Where are we right now? What will be different in an ISO55000 world? What is the IAM doing to support Individual and Corporate Members and the public generally?

27 Asset Management in 2013 The understanding of Asset Management has developed significantly over the last decade A number of approaches, standards and models have been developed across the world e.g. BSI PAS 55 ISO will define the requirements for a good practice AM Management System It will deliberately contain nothing on how well a business needs to develop its Asset Management capabilities It does not in itself guarantee you will do asset management There is a growing demand for Asset Management knowledge, guidance and qualifications to support ISO55000 These need to be developed in a global context

28 BSI PAS 55:2008 BSI PAS 55:2003 effective April 2004: Part 1 The Specification Part 2 Guidelines PAS 55 : 2008 effective September 2008 Key principles: Inclusive Whole Life Optimized BSI best seller global default standard still needs improvement (eg infrastructure -v- the rest) The IAM Toolkit: PAS55; Competences Framework; and PAS55 Assessment Methodology. Risk-based Data-supported Continuous improvement Pragmatic

29 Revising PAS55 49 organisations from 15 industries in 10 countries Organisations sponsoring PAS 55 Review Industry Sectors Organisations sponsoring PAS 55 Review Geographical footprint Electricity/gas distribution Scandinavia Australia Far East Power generation North America Manufacturing UK Water Transport Engineering/ consultancy Multinational Mining Benelux

30 Benefits of adopting PAS55 Credibility for all stakeholders audit trail for decision making Raises board room visibility Transferable and not prescriptive - common language Encourages improved communication in business Independent of business model Risk based decision making encourages a cost effective approach Provision of a framework that is sustainable Enables gap analysis to develop best practice benchmarking opportunities Transparency of decision making (keeps you out of court?) Puts AM on the map Holistic

31 Certification Pros Credibility of BSI Recognised Standard Regulators like it Independent certification Easy to communicate success Aligned with other standards ISO9001 Cons Perceived as a lot of additional work External Costs Go / No Go no incentive to out-perform Just a badge Fear of embarrassment / regulator reaction

32 The Choices Choices for the IAM, in 2008: PAS55 / BS / EN / ISO??? Risks of lowest common denominator Time and lack of control IAM wants to move on to how to and capability Aim to promote convergence of thinking / theory and collaboration worldwide

33 Agenda Assets: their management and purpose So why did the IAM initiate ISO55000? Where are we right now? What will be different in an ISO55000 world? What is the IAM doing to support Individual and Corporate Members and the public generally?

34 What is ISO/PC251? Tasked with developing 3 International Standards ISO Asset management Overview, principles and terminology ISO Asset management Management systems - Requirements ISO Asset management Management systems - Guidelines on the application of ISO 55001

35 ISO PC251 Preliminary Meeting London June 2010

36 A Brief History Background UK submitted NWIP in July 2009 for an Asset Management ISO London Meeting resulted in formation of a Project Committee BSI PAS 55:2008 adopted as the Base Document (PAS55 released in 2003 and revised in 2008 developed by 49 organisations from 15 industries in 10 different countries) ISO/PC251 Melbourne Mar11: Initial Plenary Meeting - 40 representatives from 14 countries Now 27 participating countries with 10 observers (number of delegates varies) Calgary was biggest ever meeting with 80 delegates approx

37 Participating Members 1. Argentina 2. Australia 3. Belgium 4. Brazil 5. Canada 6. Chile 7. China 8. Colombia 9. Czech Republic 10. Denmark 11. Finland 12. France 13. Germany 14. India 15. Ireland 16. Italy 17. Japan 18. Korea 19. Mexico 20. Netherlands 21. Norway 22. Peru 23. Portugal 24. Russian Federation 25. South Africa 26. Spain 27. Sweden 28. Switzerland 29. United Arab Emirates 30. United Kingdom 31. United States

38 Observing Members 1. Armenia 2. Austria 3. Hong Kong 4. Hungary 5. Iceland 6. Iraq 7. Israel 8. Malaysia 9. Morocco 10. New Zealand 11. Slovakia 12. Thailand

39 The Programme Melbourne Washington Pretoria Prague Calgary Mar 2011 Oct 2011 Feb 2012 Jun 2012 April 2013 Feb 2014 Month Stage Working Drafts Cttee Drafts DIS Comments Resolution FDIS Jun 2011 Distribute WD2 Sep 2011 WD2 Comments RCVD CD2 For Ballot DIS CD1 For Comment

40 Current Status All three documents are agreed by PC251 to be ready for Final Draft International Standard status 1 month for editing and PC251 approval 2 months international ballot / translation etc Potentially published in October 2013! One of the first ISO Standards to be published with the ISO common High Level Structure (as per Annex SL) ISO9001 and ISO14001 are currently revising to align them with ISO55000 and Annex SL ISO 17021/5 Competence Requirements for Certification and Auditing in draft to be published for comment simultaneously

41 Diagrams!

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43 Asset Management coordinated activity of an organization to realize value from assets Note 1: Realization of value will normally involve a balancing of costs, risks, opportunities and performance benefits. Note 2: activity also refers to the application of the elements of the AM system Note 3: the term activity has a broad meaning and can include, for example the approach, the planning, the plans and their implementation

44 Asset Management System Management System set of interrelated or interacting elements of an organisation to establish policies and objectives and processes to achieve those objectives Note 1: A management system can address a single discipline or several disciplines. Note 2: The system elements include the organisation s structure, roles and responsibilities, planning, operation, etc. Note 3: The scope of a management system may include the whole of the organization, specific and identified functions of the organisation, specific and identified sections of the organisation, or one or more functions across a group of organisations. Note 4: The asset management management system also includes the strategies and plans.

45 Life & Life Cycle Life Cycle the stages involved in the management of an asset Note 1: The naming and number of the stages and the activities under each stage are usually different by industry sectors and determined by the organization Asset Life period from asset creation to asset end-of-life

46 Understanding Asset Value PAS55 = Plant, machinery, property, buildings, vehicles and other items that have a distinct value to the organization ISO = something that has potential or actual value to an organization So how do you extract value?

47 Asset Management Fundamentals (previously Principles ) Value - Assets exist to provide value to the organization and its stakeholders Alignment - Asset management translates organizational intent into technical and financial decisions, plans and activities Leadership - Leadership and workplace culture are determinants of realization of value Assurance - As a process, asset management assures that assets will fulfil the required purpose Source ISO May 2013

48 Agenda Assets: their management and purpose So why did the IAM initiate ISO55000? Where are we right now? What will be different in an ISO55000 world? What is the IAM doing to support Individual and Corporate Members and the public generally?

49 Business Drivers What asset costs can be reduced, deferred or eliminated? How can we spend less on assets and achieve our targets? How can we get better returns on capital employed? How can we avoid the risk of assets being unavailable when we need them? How can we demonstrate levels of asset related risk are known and appropriate? How can we improve the deployment and maintenance of assets?

50 So, will it work? Does Microsoft Word work? Management and Leadership Culture and Vision and Line-of-Sight Levels of Service / Perceived Value FD attitude and database ( also fair value etc)? Training formal and on-the-job The Asset Management Profession

51 Some thoughts Utilities, infrastructure & the permanent asset Regulation, supervision and governance (cf Sarbanes Oxley) Compliance driven adoption without business benefit Audit and Due Diligence Investor analysis, stock market and share prices Mature consideration of how much / how excellent and differentiation for targeted stakeholders Will manufacturing adopt to same extent? Public sector and Local Government National Government & national mind-sets (taxpayer)

52 Agenda Assets: their management and purpose So why did the IAM initiate ISO55000? Where are we right now? What will be different in an ISO55000 world? What is the IAM doing to support Individual and Corporate Members and the public generally?

53 Asset Management Anatomy Intro Disambiguation (asset management and Infra / Enterprise / Physical / Strategic etc) Principles & Philosophy (history, PAS55, ISO uses PAS55) and using the ISO Principles; The Scope of Asset Management (uses model and similar diagrams linking strongly with LoS etc; 39 Subjects (as per Warwick doc)

54 The Boundary

55 Core

56 Landscape

57 IAM Framework

58 Current Work Body of Knowledge Knowledge Centre (incl case studies) Subject Specific Guidelines (see The Anatomy ) Maturity / Excellence work stream Asset Management Certificate & Diploma International Accord Project Reviewing Endorsed Trainer & Assessor Schemes Events - strategic review (incl badging ) International relationships & Global Forum (GFMAM)

59 Why do Asset Management? Business benefit Real value, performance, risk control etc Governance & longer-term thinking People and silos / business processes Stakeholder demand similar to ISO etc Future Compliance ISO 55000/1/2 Financial / Annual Reports Just Good Management!

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62 Further Information Thank you for listening Do ask Questions