Status of the ISO 55000 Asset Management System Standard

Michael E. Poland, CMRP

Board Member, ANSI Corporate Member , IAM Director of Asset Management, Life Cycle Engineering

ISO 55000 Asset Management Systems

The release of ISO 55000 Asset Management will be a seminal event for asset holding organizations and for all of us as Property and Asset Management Professionals How can you leverage this incredible opportunity to benefit your organization and your career?

The Need for Standards

Risk awareness has become a very high concern among business executives and government officials: The world has suffered from major industrial disasters, the financial crisis and great recession, and continued global instability caused by civil unrest and economic duress of certain nations There is a need for an element of stability and this standard intends to be a leveling force for international trade
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Strategic Model

Strategic Plan Business Objectives

Asset Support Asset Operation Asset Utilization & Performance Asset Improvement

Concept

Design

Procure

Construct

Commission
Qualification Validation

Operate

Maintain

De
commission

Physical Asset Portfolio

Background: Standards Organizations

ISO International Organization for Standardization, European based developer of international standards ANSI American National Standards Institute ASTM ASTM International is a US based developer of international standards
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Standards Development Committees

ASTM E53 ASTM standards committee for asset management standards, and the ANSI sanctioned host of the US TAG to TC/251 TC/251 ISO Technical Committee tasked with developing a management system standard for Asset Management US/TAG (US Technical Advisory Group ) - ANSI sanctioned US group participating in TC/251
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US/TAG Participating Organizations

Stratum Consulting Partners E-ISG Asset Intelligence

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ISO/TC251 Participating Countries

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

Timeline Status

Mar2011

Oct2011

Feb2012

Jun2012

April2013

Feb2014

Month Stage

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 WorkingDrafts Cttee Drafts DIS Comments Resolution FDIS

May2011 Sep2011 Distribute WD2 WD2 Comments RCVD

CD2 ForBallot

DIS

February 2014
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CD1 ForComment

ISO Definition of Management System Management System Set of interrelated or interacting elements of an organization to establish policies and objectives, and processes to achieve those objectives

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ISO 55000 Asset Management System These standards describe a Management System for Asset Management They do not describe processes for the management of assets ASTM E53 standards (and other guidance) cover lifecycle functions of the management of assets
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ISO 55000 Series Structure ISO 55000: Overview, Principles and Terminology ISO 55001: Requirements ISO 55002: Guidelines
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ISO 55000: Definitions Asset something with potential value to an organization and for which the organization has a responsibility

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ISO 55000: Definitions Asset something with potential value to an organization and for which the organization has a responsibility

Value!
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Asset Management Asset management enables the realization of value from assets Value realization is achieved through the use of analytical approaches and implementation processes that have similar core characteristics, no matter what the industry
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ISO 55000: Definitions Asset something with potential value to an organization and for which the organization has a responsibility Asset System - group of assets that interact and/or are interrelated so as to deliver a required business function or service Asset = Asset System

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ISO 55000 Series Structure

ISO 55000: Overview, Principles and Terminology ISO 55001: Requirements ISO 55002: Guidelines
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ISO 55001 and 55002 The ISO 55001 and ISO 55002 documents share the same structure ISO 55001 covers requirements ISO 55002 covers guidance The details are of course not yet finalized, but key concepts are unlikely to significantly change
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ISO 55001/55002 Structure The Organization Leadership Plans Support Operation Performance Evaluation Improvement
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The Organization Stakeholders, not just shareholders

Triple bottom line - People, Profit and Planet Quadruple bottom line adds a Spiritual component

Scope what assets are included? System interfaces

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Leadership Top management involvement Continual improvement AM integrated with business processes Adequate resources available Establish an Asset Management Policy Alignment with organizational strategic plan
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Plans Establish an Asset Management Plan Measurable objectives Risk management Monitored and communicated

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Support Provide necessary resources Assure competence of people doing the work Awareness Information requirements Documentation

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Operation Process control Change management Control of any outsourced activities

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Performance Evaluation Monitor and measure Analysis and evaluation Internal audit Management review

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Improvement
Nonconformity and corrective action Preventive action Continual improvement

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Management Systems Assessments Has anyone participated in an ISO 9001 assessment audit? Other ISO Management System Audits? If you have, ISO 55001 assessment audits will likely look very familiar
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Whats in it for your organization?

ISO 55000 promises to be a widely recognized and adopted international standard Assurance that the right things are being done Focus is on supporting the mission and objectives of the organization Realizing value from the organizations assets The opportunity to differentiate your organization

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Whats in it for you as individuals? Better enable all of us to do our jobs Increased management awareness of asset management More transportable job skills and expertise More opportunities

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Actions Awareness
Personal awareness Organizational awareness

Become an ISO 55000 expert Develop change management skills Build AM relationships across organizational silos Realize value from organizational assets Start Now!
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Three Word Summary

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Three Word Summary

Value

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Three Word Summary

Visibility

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Three Word Summary

Opportunity

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Three Word Summary

Value Visibility Opportunity

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Whats in it for you?

Better enable all of us to do our jobs Increased management awareness of asset management More transportable job skills and expertise More opportunities