Array Strategies Inc. ISO 55001; First Edition, 2014-01-15 Overview of Asset management Management systems--requirements March 30, 2014
ISO 55001 Overview Introduction Scope Normative reference Context of the Organization Leadership Planning Support Operation Performance Evaluation Improvement
Introduction This standard provides a framework for asset management It is intended for use by: Those involved with establishing, maintaining and improving asset management systems. Those providing services related to asset management Those involved in assessing an organization s ability to meet contractual, regulatory or legal requirements (internal or external parties) The standard is designed to facilitate alignment of an asset management system with other management system requirements (I.E. ISO 9001, 14001)
Scope This standard specifies asset management system requirements within the context of the organization. This standard may be applied to any type of asset, by any size or type of organization. NOTES: While this standard is intended for physical assets it may be applied to other assets. This standards does NOT specify financial, accounting or technical requirements for managing specific types of assets.
Normative reference Indispensable for the application of this standard is: ISO 55000:2014 Asset management-overview, principles and terminology. The foregoing standard is also the source for Terms & Definitions.
Context-section 4 4: Context of the Organization: 4.1: Organization SHALL determine internal and external issues germane to its purpose & strategic direction that have a bearing on the ability to achieve intended outcomes. Asset management objectives shall be aligned with organizational objectives. These are to be in the SAMP (strategic asset management plan) NOTE: The concept of context is also pertinent to risk management (ref ISO 31000)
Context 4.2: SHALL determine needs, requirements and expectations of stakeholders: relevant to the AMS (asset management system) The above includes stakeholder requirements for recording salient financial and nonfinancial information internal & external reporting expectations. Shall determine the criteria for asset management decision making
Context 4.3: SHALL determine boundaries and applicability of the AMS. This must align with the SAMP (strategic asset management plan) and AM policy. Consider: External and internal issues related to context Requirements from 4.2 above. Interaction with any other management standards deployed (IE ISO 9001 or 14001) The defined asset portfolio shall be covered by the scope of the AMS scope is to be documented information (see 7.6 below)
Context 4.4: SHALL establish, implement and maintain and AMS including: Required processes and their interaction. SAMP which includes the role of the AMS in achieving defined AM objectives.
Leadership-section 5 5.1: Top Management shall demonstrate leadership and commitment with respect to the AMS by ensuring: AM policy, SAMP and AM objectives are compatible with organizational objectives. Integration of QMS with business processes Required resources needed for the AMS are available to achieve intended outcomes. Directing and supporting personnel to contribute to the system s effectiveness. Promoting cross functional collaboration & continual improvement. Asset risk management is aligned with overall risk strategies
Leadership-section 5 5.2: Top Management shall establish an AM policy that: Is appropriate to the nature and scale of the organization Provides a framework for setting objectives Commits to satisfying all requirements to continual improvement. Is communicated in the operation and available to stakeholders as appropriate. Is reviewed and updated as required. Is available as documented information (ref. 7.6 below)
Leadership-section 5 5.3: Top management SHALL-define roles, responsibilities with respect to the AMS and ensure they are communicated through the operation. Specifically responsibility & authority for: Establishing and updating the SAMP, including objectives Ensuring the AMS supports the SAMP Ensuring the AMS remains suitable for the operation and compliant with this standard. Reporting performance of the AMS
Planning-section 6 6.1: Planning for the ASM requires that the organization shall consider: Actions to address risks and opportunities must consider context Design the QMS to achieve desired outcomes in context Prevent/reduce undesired effects Achieve improvement Process to address, integrate and evaluate effectiveness of actions ensuing from the above
Planning-section 6 6.2.1: Planning AM objectives shall be integrated with other planning activities including financial, human resources and other key planning functions. AM objectives shall: Be consistent and aligned with organizational objectives Reviewed and updated as part of the SAMP Be measureable as practical and monitored as applicable Consider requirements imposed on the assets or the system
Planning-section 6 6.2.2: Planning to achieve AM objectives shall be integrated with other planning activities designed to achieve results. AM Management Plans shall: Be aligned with the policy and the SAMP Indicate the method and criteria for decision making and application of resources to achieve planned objectives Methods to be employed to manage assets over their life cycle The who, what, when, where and how of the methods Evaluation criteria, financial and other implications. Actions to assess and mitigate risk associated with managing the asset. (See ISO 31000 re risk management)
Support-section 7 7.1: Resources determine what s needed to establish, implement, maintain and improve the AMS. Such resources shall be provided. For persons whose work affects asset performance assure: 7.2: Competence: Define required competencies; ensure persons filling roles are competent; take action where there are competencies gaps retain documented evidence of competence 7.3: Awareness: Of-policy; their impact on asset performance and impact on effectiveness of the AMS; their work activities and related risks and implications of not following the system. 7.4: Communication: Define channels for internal & external as relevant to assets and the ASM. (What, to whom, by whom via what means)
Support-section 7 7.5: Information requirements: Shall determine information requirements related to assets, asset management and the ASM. In so doing: Shall consider significance of risk; roles and responsibilities of management; AM processes; information exchange with stakeholders; availability and quality if information supporting organizational decision making. Shall determine information attributes; quality along with the how & when of collection, analysis & reporting of information. Shall specify, implement & maintain processes for managing information Shall determine alignment of information with financial & non financial information and the traceability/integrity thereof.
Support-section 7 7.6.1: Documented Information; the AMS shall include documented information: As required by the standard as explicitly stated @ various clauses. As applicable to legal or regulatory requirements As DETERMINED BY THE ORGANIZATION as being necessary Extent of documentation will vary from organization to one another size, complexity, competence are factors
Support-section 7 7.6.2: Creating and updating- shall ensure that appropriate: format (media, style, graphics et al); approval authority & identifiers (title, date, number, source as required) are all defined. 7.6.3: Documented information shall be controlled to ensure: It is available for use where required That revisions are controlled and updated at points of use That it is secured from tampering by unauthorized persons consideration to be given to risk, confidentiality, regulatory or risk oriented retention time specifications That information of external origin, disseminated or used in the organization, is the most current available.
Operation-section 8 8.1: Operation, planning & control Shall plan, implement and control processes needed to meet requirements and the AMP (6.2) and related corrective or preventive actions (determined from 10.1 & 10.2) Documented information shall be to the depth and breadth necessary to assure the process is executed as planned and that risk is mitigated. 8.2: Management of change risk associated with any change must be assessed BEFORE the change is implemented. Change implementation must be managed and controlled (I.E: see 7.6 above control of information)
Operation-section 8 8.3: Outsourcing AM activities requires definition of: Type and extent of control of external input predicated on RISK and potential impact; agreements with the provider regarding shared risk and the boundaries around who does what. Responsibility and authority for managing outsourced processes Shall establish and apply criteria for the monitoring of outsourced providers (re 9.1) documented information to be retained. The vendor must be informed and competent and information flowing to and from the vendor must be controlled (ref 7.2, 7.3 and 7.6 above)
Performance evaluation-section 9 9.1: Measuring, monitoring analysis and evaluation demands that the organization shall: Determine what needs to be measured and how how must consider validation/integrity of information used. When monitoring and measurement is conducted. When the foregoing is evaluated, reported and acted upon Such monitoring, evaluation & reporting shall indicate: Asset performance Asset management performance (financial & non financial) The effectiveness of the AMS
Performance evaluation-section 9 9.2: Internal audit:--shall conduct internal audits at planned intervals that must: Assure the AMS conforms to this standard and supports the organization s own AMS objectives. Be supported by a defined program that defines who, what, when. Have defined scope and objectives and criteria Be conducted by impartial and objective auditors Be evidenced by documented in formation (report) and reviewed by management.
Performance evaluation-section 9 9.3: Management review: management shall review the AMS at planned intervals to ensure ongoing suitability & effectiveness. Reviews shall consider: Actions/issues from previous reviews Any changes/influences (external or internal) that may have a bearing on the AMS Data re AMS performance (corrective actions, risks, audit results, performance measures results, improvement opportunities) Changes in risk profiles. Output is to be document and include decision and actions
Improvement-section 10 10.1: Nonconformity & corrective action: In the event of a nonconformity, or an incident, action shall be taken, commensurate with the risk associated with the issue, to: Address any required immediate remediation Understand the root cause Mitigate the root cause (I.E. training, new procedure, capital investment) Verify planned action was taken and implemented Assure corrective measures were effective.
Improvement-section 10 10.2: Preventive action: Shall establish a process to proactively identify potential failures (risk identification) and evaluate the need for preventive action. Process details similar to 10.1 above. 10.3: Improvement: Shall continually improve the suitability and effectiveness of the AMS (E.G. review measure targets and raise goal posts and targets are met)