ISO 55000 NEW STANDARDS FOR ASSET MANAGEMENT Peter Way PSM Chair NAMS.AU - IPWEA Member of MB 19 (Australia Mirror Committee)
Some Key Questions What will the standards deliver? Will they replace existing manuals and practice guides - such as IIMM? Will they create a stimulus for new guidance and practice? Implications for Parks and Facilities Managers?
Presentation Agenda 1. Current status of the ISO Asset Management Standards Development 2. An overview of the ISO 55000 suite of asset management Standards 3. Address the foregoing questions 4. Implications for AMs 5. Your Questions Slide 3
The International Writing Committee PC 251 has 31 Member Countries has 12 Observer Countries Five Meetings of PC 251 over 3 years
Australian Representation ISO 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
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
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
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 which assets involved Asset Lifecycle approach- Life Stages to suit each organization.
Who will use these Standards? Those establishing, maintaining or improving an asset management system, Those delivering asset management activities and service providers, Internal and external parties assessing conformance of the organization s ability to meet legal, regulatory and contractual requirements and the organization s own requirements.
Why will they be used? Because it is good business practice 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
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 Terms Fig 1 DIS 55000 Managing the Organisation Coordinated activity of an organization to realize value from assets Asset Management Asset management system Asset portfolio 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 - Asset Management Fundamentals Assets exist to provide value to the organization and its stakeholders Asset management is not about just the assets, but the value they can provide to the organization and stakeholders via services or products Alignment Asset management translates the organizational objectives into technical and financial decisions, plans and activities.
55000 - Asset Management Fundamentals Leadership and workplace culture are critical Leadership 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 purpose The need for assurance arises from the need to effectively govern an organization.
Asset Management System Context of the organisation Leadership Planning Support Operation Performance evaluation Improvement Fig C1 DIS 55000
ISO 55001 Specifies the requirements for a management system for asset management 73 Shalls Apply in entirety But Scalable to suit organisation needs Focus on physical Assets but can apply to All Assets Eg. non-physical assets such as leases, brands, intellectual property rights, reputation or agreements.
ISO 55001 - Asset Management System Key issues: Implements the 55000 Standard Fundamentals Organisation chooses which assets to apply ISO 55001 to. Integration of technical and financial, in particular: AM decision making processes Accrual accounting and IFRS requirements Uses risk based decision making that produces a balance between risk, cost and performance outcomes
55001 Overview of Contents Context of the Organisation Needs/Expectations of Stakeholders incl Customers Scope of the AM system and to which assets it will apply. Leadership and Commitment AM Policy Roles, responsibilities and authorities Planning for both the AM System and AM Risks and Opportunities AM Objectives and Strategic AM Plan (SAMP)
Content Cont d Support for both the AM System and AM Resources, Competence, Awareness Communication Information management Operation and Control Change management Outsourcing
Content Cont d Performance Evaluation Monitoring and Review Auditing Improvement Nonconformity Corrective and Preventive Action Continual improvement
Asset Management Plans Includes (amongst other requirements): 1. What will be done and by who 2. The timescales for the plan 3. Resource needs for the plan (including financials) 4. Risks associated with the plan and how they are mitigated 5. Review period for the plan
Drivers for Applying the Standards
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. Better VALUE to stakeholders
Will it replace existing manuals and practice guides such as IIMM? My view Answer is resounding NO! IIMM provides the necessary How To meet the Standards requirements. However the IIMM does need to recognise and be tailored to work with the ISO Standards.
IIMM Update Status Report Commenced mapping process to identify Sections from IIMM against the 55001 Requirements. Producing an Addendum to highlight how to apply the IIMM in meeting ISO 55001 requirements.
Will the Standards create a stimulus for new guidance and practice? Can if applied appropriately and not just for sake of compliance. Lessons can be learned from a more globally consistent approach. Promoting integration of management systems can break down silos. Look at any gaps between current practice and what is promoted in the Standards.
IPWEA Policy on the ISO Standards 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. Orgs to decide on appropriate level of certifying compliance.
To Audit or Not for Compliance? What will your stakeholders expect? What are the costs/benefits? Concern regarding the competence Auditors in the AM MS field. IPWEA in discussions with AMC (and others) to establish a technical evaluation process for AM Auditors.
Next Steps on ISO? Standards Australia to resolve through MB19 Committee whether to adopt or modify. Likely to be in place by beginning of next year. IPWEA to run series of 1 day workshops to raise awareness and assist in implementation. Highlight Policy Using the IIMM as How To guide.
What will be your 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? Ignore at your peril?
Some other IPWEA Resources Practice Notes on Condition Assessment: Parks under development Buildings PN3 Facilities Managers Levels of Service out soon NATSPEC and AUS-SPEC Documentation: Parks and Open Space maintenance Building maintenance and operation specifications including Public toilets http://www.natspec.com.au/documents/techguides.asp
Workshops for Facilities Managers Buildings PN3-2 Day Workshops Case Studies Hands on Condition assessments Buildings.PLUS FREE Webinar Series www.ipwea.org/assetmanagement
Your Questions?