ASSET MANAGEMENT what is it and why? David McKeown CEO, Institute of Asset Management

Transcription

1 ASSET MANAGEMENT what is it and why? David McKeown CEO, Institute of Asset Management CEAI, Mumbai, India 12 October 2017

2 My own experience Chartered Electrical Engineer Background in railways: primarily signalling, control and other safety systems with responsibility for maintenance and performance Military (Army Officer) and some air traffic experience Over 10 years experience as free-lance consultant: business process and major projects (UK Channel Tunnel Rail Link) Full-time CEO of the Institute of Asset Management since Sep09 Direct experience of behaviours and organizational processes in public and private sectors, military, volunteer / charity, professional not-forprofit Focused on selection, training and personal development, workforce organisation and culture change including evidence of competence to do safety engineering 2

3 Asset Management is boring Today s talk is not about Asset Management! 3

4 4 Agenda Asset Management, Assets & Value Managing Assets in a Business Context The IAM 2 Decades of Progress PAS55 to ISO55000 Resources to help you Qualifications, Endorsed Assessors & Trainers Q & A

5 Question.. What is Asset Management? Is it the same thing as Management of Assets? 5

6 Scope of Asset Management What is Asset Management? Is it the same thing as Management of Assets? Asset Management is the: coordinated activities of an organization to realize value from assets NOT the management of assets! Business / purpose centric NOT asset centric - The Line of Sight 6

7 Asset Management is NOT just about the Management of Assets and this includes FM / Maintenance a vitally important task 7

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13 Other Colas are available 13

14 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? 14

15 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!!!!!! 15

16 Value? A man who knows the price of everything and the value of nothing. Oscar Wilde, Lady Windermere's Fan Answering the question, what is a cynic? 16

17 17 Agenda Asset Management, Assets & Value Managing Assets in a Business Context The IAM 2 Decades of Progress PAS55 to ISO55000 Resources to help you Qualifications, Endorsed Assessors & Trainers Q & A

18 When should we measure?

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20 Inputs, Output or Process / Activity and Approach?

21 The whole-life approach matters 21

22 Paul Poon CEO, China Light & Power

23 Paul Poon - CLP 23

24 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? How can we achieve our aims better? 24

25 Do we agree? Asset Management is Transformation rather than a Project Long-term Thinking Clarity of Purpose Line of Sight VALUE - centric (not assets or system) 25

26 26 Agenda Asset Management, Assets & Value Managing Assets in a Business Context The IAM 2 Decades of Progress PAS55 to ISO55000 Resources to help you Qualifications, Endorsed Assessors & Trainers Q & A

27 The Institute To be recognised as the leading, international, professional body for asset management Individual & Corporate Members Finance / accountants as well as engineers Source of good practice & cross-industry thinking. Alliancing and collaborating world-wide 27

28 Member Growth The IAM has not actively marketed or recruited members Graphs do not include Affiliates and similar categories 28

29 Who are we? The IAM is a Professional Association comprising a Learned Society complemented by a Membership Body Our focus is therefore the discipline as well as competent people We need to develop and disseminate knowledge, training and good practice to support the Corporate Journey and the Individual Journey We need to support people and organisations at all stages of this journey We need better engagement with all our members and the wider Asset Management community We need to develop the Institute to enable our objectives to be achieved 29

30 Timeline 1994 Creation 2000 Concept of an Asset Management standard 2004 Reformation new Constitution / Legals / Board 2008 Birth: Launch Toolkit, Branding and plan 2009 First Office & CEO (Teenager!) 2014 Celebrate first 2 Decades IAM office created Nov 09 new CEO and Office Manager Previously was only 1 person equivalent office service

31 A Mature Institute Asset Management as a true Profession Relevant to new and experienced Asset Managers Thought Leaders Cross Sector International

32 Key Activities Professional Membership Professionals engaging with their Profession / Networking Magazine, Newsletter and Website Demonstrable competence (Formal Qualifications being developed) Continuing Professional Development Learned Society Knowledge Centre & Research Excellent value and quality Events / Seminars (some endorsed commercial) Projects Standards eg ISO project Sector Specific Guidelines Services Endorsed Trainers Endorsed Assessors Corporate Members ( esp Patrons) ensure industry input / relevance 32

33 Enduring Objectives 1. Collect / Collate / Disseminate existing knowledge and good practice 2. Generate and extend knowledge and good practices 3. Influence public policy and stakeholder expectations 4. Promote capability and excellence in asset owning organisations or their suppliers and structured schemes for recognising these achievements 5. Promote knowledge and competence of individuals and objective schemes for recognising these achievements 6. Deliver Member publications, engagement and networking opportunities and other valuable Member Services 7. Raise profile and respect for IAM and the profession 8. Collaborate and support other bodies having similar objectives 9. Develop and maintain an appropriate and sustainable organisation 33

34 IAM Projects Benefits of Asset Management numerate / evidence Measuring Value it s not all about cash Maturity & Excellence how much AM is worthwhile Corporate Journey - helping organisations start and then continue as far as they wish to improve (Beyond ISO55001) Individual Journey helping people learn about AM and how to do it and assess / recognise competence Culture and organisational good practice Senior Leaders 34

35 35 Agenda Asset Management, Assets & Value Managing Assets in a Business Context The IAM 2 Decades of Progress PAS55 to ISO55000 Resources to help you Qualifications, Endorsed Assessors & Trainers Q & A

36 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

37 ISO

38 David s perception! ISO is not enough Culture & Leadership is of fundamental importance - over and above Management System itself (but significant range of views!) 38

39 People do asset management Leadership & Culture Good asset management is practised by people who understand: financial, operational and technical realities (of their business) quality and price expectations of customers. And because doing asset management well REQUIRES: listening to and convincing people with different agendas, at different levels, in different disciplines integrating a coherent and balanced plan. there is a premium on personal and leadership skills. Who does this / is responsible for doing this well?

40 40 Agenda Asset Management, Assets & Value Managing Assets in a Business Context The IAM 2 Decades of Progress PAS55 to ISO55000 Resources to help you Qualifications, Endorsed Assessors & Trainers Q & A

41 IAM Conceptual Model

42 39 Subjects

43 What do organisations need? PAS55 now ISO55000 Handbook how to do it Processes, sure but who actually does them? IAM Initiatives: 2008 Toolkit incl Competences Framework 2013 Qualifications first exams 2017 Individual Journey / Professionalising the Discipline What are the characteristics of good asset management organisations?

44 People are our greatest asset Yes, when they perform as expected / well Consider risk, cost and performance: Suppose you knew each of your people was fully capable of everything you might want? (or, at least, within reason!) Suppose if this were not the case, you knew? Suppose people believed you were interested? Traditional professions have established evidence of professional achievement Organisations have learned to use them appropriately Asset Management spans multiple professional silos!

45 IAM Framework

46 Asset Management Anatomy Introduction Principles & Philosophy (history, PAS55, ISO uses PAS55) and using the ISO Principles; Scope of Asset Management (uses model and similar diagrams linking strongly with LoS etc; 39 Subjects Download free of charge: 46

47 Spreading the Word Big Picture 47

48 Corporate Journey How To and How Much To 48

49 Guidance on Maturity 49

50 The Endorsed Schemes IAM chose to influence members & informed buyers Announced first Endorsed Assessors & Training Providers in 2010 Been very successful Light touch based on Codes of Practice / Conduct

51 Qualifications 51

52 Routes to Membership Student Associate MIAM FIAM Initial & Continuing Professional Development Chartered CFIAM 52

53 Chapters & Branches To Learn To Share To Network

54 Asset Management We don t know it all yet! But doing Asset Management is simple, not easy Culture & Leadership as much as the system Challenges: Compliance driven or project Proprietary names & confusion (physical/enterprise/etc) Short term costs and other measures Focus on assets not value

55 Further Information Thank you for listening Do ask Questions

56 CEAI Delegates more info!

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58 When you say Asset Management, what is your focus? MANAGING ASSETS focuses on Lifecycle activities and asset care - availability, reliability, dependability and safety Asset location, condition, life extension and/or interventions Asset databases, systems (and IT) and performance People, skills and work management Budgets and key performance indicators (KPIs) / cost of maintenance and current performance ASSET MANAGEMENT focuses on The purpose of your organization, what assets does it need and why Value and long term outcomes Risk and context e.g. markets / climate / regulation Holistic approach to different funding streams e.g. CAPEX and OPEX = TCO Collaborative behaviors - breaking down silos both internal and supply chain? How assets contribute to organizational value 58

59 When you hear Asset Management, what do they mean? MANAGING ASSETS Top Management focus on: Short term gain / loss Departmental / individual performance Savings, especially OPEX Your Suppliers focus on: Short term contracts and performance Service level agreements / contract specifications ASSET MANAGEMENT Top Management focus on: Long term value (for Org) Developing competence and capability across workforce Business risks understood / mitigated aligned strategy Your Suppliers focus on: Long term contracts and/or partnering in support of client value and objectives Understanding client strategy / needs in years 59

60 When you hear Asset Management, what do they mean? MANAGING ASSETS Your Colleagues focus on: ASSET MANAGEMENT Your Colleagues focus on: Asset data, location and condition Information supported decisions assessment Current KPIs Departmental budget (strategic context / customer needs) Strategies to select / exploit assets over their lifecycles supporting business aims Collaboration across departments Your Stakeholders Your Stakeholders focus on: focus on: Costs Triple bottom line Current performance Clarity of purpose of organization Response to failures / maintaining Impact of activities on organizational function objectives 60

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