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The new ISO standards ISO 55000, ISO 55001 and ISO 55002 enable organizations to achieve their objectives
through the effective and efcient management of their assets. This resource guide answers seven questions that
are frequently asked by professionals seeking to understand what the standards contain.
FREQUENTLY ASKED QUESTIONS SERIES:
ISO 55000: The New International Standard for Asset Management
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INTRODUCTION:
Manufacturing, mining, petroleum, and power generation are some of the most asset-intensive industries in the world. Organizations
in these industries and others like them are continuously facing increasing pressures to develop business objectives to meet their
strategic plans while simultaneously managing massive physical portfolios of assets efciently. To a large extent, success hinges on
whether or not asset-related risks to the value stream are adequately identied and managed in such a way that minimizes the total
cost of ownership throughout an assets lifetime. By aligning corporate culture with an integrated systems approach to managing
assets from Concept to Decommissioning, organizations will not only uncover practical processes for getting the most out of capital
investments but will also realize immediate benets after applying an asset management standard.
QUESTION #1:
Why do we need a new standard for asset management?
ANSWER #1:
Some signicant asset-related failures have brought asset management to the forefront of public and political attention, creating the
momentum for an international standard. The International Organization for Standards (ISO) stood up Technical Committee (TC)
251 and charged it with developing the ISO 55000 series of standards for asset management. This technical committees rst task
was to identify and then document the need for such a standard. The committee concluded that a number of factors necessitated
developing a standard. The committee found that risk awareness has become a signicant concern among business executives
and government ofcials. The world has suffered from major industrial disasters, the nancial crisis and 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.
QUESTION #2:
Whats the difference between PAS 55 and ISO 55000?
ANSWER #2:
The Institute of Asset Management (IAM) and the British Standards Institute (BSI) collaborated on a specication for asset
management that was released in 2004 and then signicantly updated in 2008: Publicly Available Specication (PAS) 55 part 1
and part 2. This specication was widely adopted in the United Kingdom and Australia but was not widely adopted in other parts of
the world. There are three signicant ways in which the new ISO standards builds upon the elements of the PAS 55 specications:
Organizational structure: The ISO standards aim to build the understanding of how an asset management system ts within an
organizational structure. An asset management policy links an organizations physical asset portfolio to the organizations strategic
plan and business objectives.
Value: The ISO standards drive home the point that asset management is less about managing physical assets than it is about the
value created for the organization by how the asset is handled through each stage of its life cycle.
Leadership: The ISO 55000 Overview states that Top management should create the vision and values that guide policy, practice
and actively promote these values inside and outside the organization (2.5.3.3).
FREQUENTLY ASKED QUESTIONS:
ISO 55000 Standard
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QUESTION #3:
Why the emphasis on value and how will this new standard help organizations create more value from their assets?
ANSWER #3:
The intent of the ISO standard is to drive the decision making about how assets are managed based on the value the asset delivers in
meeting organizational goals not the risk of failure, or the cost to replace, or other typical drivers. Criticality should be based on the
direct impact the asset has on the organizations goals. Remember, while focused on physical assets, the standard has been broadly
written to be inclusive of all assets.
The standards requirement for an organizations leaders to create the asset management policy will help organizations create more
value from their assets. This engaged leadership will drive recognition of the importance of asset management across the organization
(not just the maintenance and repair organization). Engaged organization leaders will also be more likely to appropriate the resources
and funding required to deliver reliable asset performance. Managing assets in a consistent way across their life cycle will remove
some of the costs that result from organizational silos. For example, using best practices in the transition from capital acquisition to
asset operation will decrease losses, thereby increasing the value, and nancial performance, derived from assets.
QUESTION #4:
What is a SAMP?
ANSWER #4:
The Strategic Asset Management Plan (SAMP) is used to develop the asset management plan(s), which should set out the asset
level activities (55002-4.1.1.2). It species how organizational objectives are to be converted into asset management objectives.
The SAMP is a formal document. It will include the templates, standards, processes and decision-making criteria for the development
of individual asset management plans. It will be broad enough to apply to all assets. The SAMP is ideally developed by managers
responsible for all assets employed in meeting organizational goals.
QUESTION #5:
What steps will my organization need to go through if it decides to adopt the standard?
ANSWER #5:
Adopting the standard will likely impact the whole organization, including its stakeholders and external service providers, and can use,
link or integrate many of the organizations activities and functions that would otherwise be managed or operated in isolation. The
process of establishing or modifying an asset management system requires a thorough understanding of each of its elements and the
policies, plans and procedures that integrate them. Some key steps in adopting the new standard may include:
Commence education: Leaders and managers from throughout the organization need to understand the new standard and the roles
that different parts of the organization play in optimizing value from the asset lifecycle.
Create a business case: Evaluate whether it would be benecial for the organization to align with the ISO standard and to what
extent stakeholders will expect or require ISO 55001 certication.
Dene an asset management policy: Organizational leaders need to demonstrate commitment to the standard by clearly dening
guiding principles, decision-making criteria, reporting and continuous improvement requirements. These leaders will also
FREQUENTLY ASKED QUESTIONS:
ISO 55000 Standard
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create a communications plan and document the roles and responsibilities of the individuals who will create and maintain the
SAMP and supporting asset management plans.
Develop the SAMP: The approach to implementing these principles contained within the policy should be documented in
a SAMP.
Establish asset management objectives: Derived as part of an organizations SAMP, asset management objectives should be
tailored to suit each organizations needs, which may include addressing subsets of objectives (e.g. for the asset management
system, asset portfolios, the asset system and at asset level), and can vary for different functions carried out to meet stakeholder
requirements.
Generate a project master plan for individual asset management plans: Since implementation of individual asset management
plan is an ongoing iterative process that involves resolving conicts between what is planned and what can be afforded in terms of
nancial constraints, development of the plans should be prioritized.
Develop asset management plans: Asset management plans require documentation at a level that is appropriate to the
organization and the degree of sophistication in its asset management approach. There is no set formula for what should be
included or how it should be structured, however, it is common practice for such asset management plans to contain a rationale
for asset management activities, operational and maintenance plans, capital investment (overhaul, renewal, replacement and
enhancement) plans, and nancial and resource plans, often based on a review of historical data.
Create control strategies and continuous improvement: Sustaining the system over the long-term requires that strategic
controls be in place to support continuous improvement efforts and provide a method for managers to respond more proactively
and timely to failures or change.
Pursue certication: Depending on the organizational requirements, the next logical step after implementing an asset management
system is certication.
QUESTION #6:
How do we get certied?
ANSWER #6:
In order for an organizations asset management system to become certied, a conformity assessment must be performed.
A conformity assessment is the process an organization initiates to substantiate their management systems to be certied as
complying with the requirements of an ISO standard (including ISO 55001).
Certication of management systems is typically performed by third-party conformity assessors. These certication authorities will
be qualied against an ISO standard currently under development: ISO/IEC DTS 17021-5 Conformity assessment Requirements
for bodies providing audit and certication of management systems Part 5: Competence requirements for auditing and certication
of asset management systems. It is important to note that actual certication is performed against the requirements of ISO 55001
not ISO 55000.
Until ISO/IEC DTS 17021-5 is published and qualied conformity assessors become available then formal certication
is not possible. As an alternative to certication or if an organization is simply seeking to nd ways to improve their asset
management system, then a gap assessment can also be conducted comparing the existing processes to the best
practices identied in ISO 55000. This allows for early identication of any gaps and will often reveal an approach for
quickly mitigating those gaps.
FREQUENTLY ASKED QUESTIONS:
ISO 55000 Standard
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QUESTION #7:
Why should leadership care?
ANSWER #7:
These global standards for asset management will create a set of expectations that help mitigate legal, social and environmental
risks. Obtaining insurance coverage is another reason to look at adopting publicly acknowledged industry standards. Strategic
asset management that focuses on the value stream of the entire asset life cycle, not just operating and maintaining equipment, will
drive better performance and more economic stability.
Section 2 of ISO 55000 lists the benets of asset management:
Improved fnancial performance
Informed asset investment decisions
Managed risk
Improved services and outputs
Demonstrated social responsibility
Enhanced reputation
Improved organizational sustainability
Improved effciency and effectiveness
FREQUENTLY ASKED QUESTIONS:
ISO 55000 Standard
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Is your organization looking for help implementing the new ISO standards?
The Life Cycle Institute offers three ISO 55000 workshops to help your organization achieve ISO 55000 compliance:
ISO 55000 for Leaders: Developing the Asset Management Policy
In this 1/2-day private workshop leaders will create an asset management policy signed by top
management and a documented organizational structure that demonstrates commitment to the
standard. They will also document the roles and responsibilities of the individuals who create and
maintain the strategic asset management plan (SAMP) and supporting asset management plans.
ISO 55000 for Managers: Developing the Strategic Asset Management Plan
In this 2-day private workshop, participants will use the asset management policy created in the
ISO 55000 for Leaders workshop to build the Strategic Asset Management Plan (SAMP) and the
project plan for creating the underlying asset management plans. The asset management policy
outlines the principles by which the organization will apply asset management to achieve its overall
organizational objectives.
ISO 55000: Creating an ISO 55000 Implementation Plan
In this 2-day public workshop, you will review the asset management policy, then design and
develop a draft policy for your organization. Based on this draft policy you will outline the
strategic asset management plan (SAMP) and the project plan for creating the underlying asset
management plans.
To nd out more about ISO 55000 training, please contact us at 800-556-9589 or education@LCE.com.