iso 55000 overview

1© Life Cycle Engineering 2013© Life Cycle Engineering 2013 1© Life Cycle Engineering 2008

Leveraging the ISO Standard to Manage Risk and Realize Value of Your Organization’s Assets

Randy Heisler LCE

ISO 55000

2© Life Cycle Engineering 2013

Why Standards? Without them bad things can happen!


The Need for Standards

Stability

Level differences in how business around the world is grown and managed

Increased concern over risk awareness

Industrial disasters, financial instability, civil unrest and economic duress of certain nations

Balancing force for international trade


How we got here

Feb 2014

CD1For Comment

Month 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

Stage Working Drafts Cttee Drafts DISCommentsResolution

FDIS

April 2013Jun 2012Feb 2012Oct 2011Mar 2011

May 2011

DistributeWD2

Sep 2011

WD2 Comments RCVD

CD2For Ballot

DIS Released 13 January

2014


ISO 55000 Primary Documents

A set of three standards issued by the International Organization for Standardization

ISO 55000 – Terms and Definitions

ISO 55001 – Requirements

ISO 55002 – Guidance

Will be harmonized at a high level with other managing systems like

ISO 9001 (quality)

ISO 14001 (environmental)

ISO 50000 (energy sustainability)


Important ISO 55000 Themes

Value recognition

Risk-based

Optimization of cost, risk

& performance

Aligned objectives

Transparent decision making

Recognize impact of long life

cycle issues


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 Management – actions that enable the realization of value from assets


ASSET MANAGEMENT


Fundamentals of Asset Management

• Assets exist to provide value to the organization and its stakeholders

Value

• Asset management translates the organizational objectives into technical and financial decisions and plans

Alignment

• Leadership and workplace culture are determinants of realization of value

Leadership

• Asset management gives assurance that assets will fulfill their required purpose.

Assurance


Asset Management Expanded View

Corporate/OrganizationManagement

AssetManagement

SystemManagement Asset Portfolio

Management Asset Systems

Manage Individual Assets

Organizational Strategic Goals

Capital investment value,Performance and sustainability

Systems performance, cost & risk optimization

Asset life cycle costs, risks & performance Create/

Acquire Utilize MaintainRenew/Dispose


Asset Management System

Section 4.4

The organization shall establish, implement, maintain and continually improve an asset management system including the processes needed and their interactions.

The organization shall develop an asset management strategy which includes documentation of the role of the asset management system in supporting achievement of the asset management objectives.


Asset portfolio

Managing theorganization

Asset management

Assetmanagement

system

Coordinated activity to realize value from assets

Set of interrelated or interacting elements to establish asset management policy, objectives and processes to achieve objectives

Assets within the scope ofthe asset management system

Benefit: Provides risk control and gives assurance to meet objectives

Relationship of asset management to the asset management system


Key documents for asset management system

1

2

3

4

Asset management policy

Asset management strategy

Asset management objectives

Asset management plan Dependent upon organizational objectives and organizational plan


Asset Management System

A Strategic Decision

An asset management system provides a structured approach

for the development, coordination and control of

asset-related activities across their life cycle


Role of leadership

• Demonstrate leadership and commitment

• Establish an asset management policy and strategy

• Define organizational roles and responsibilities


Elements of an Asset Management System

A Common Model

1. Context of the organization2. Leadership3. Planning4. Support5. Operation6. Performance Evaluation7. ImprovementPolicy

StrategyObjectives


Context of the Organization

Considerations

External and internal context

Stakeholder needs and expectations (external and internal)

Scope of the asset management system


Leadership Considerations

Leadership and commitment

Roles and responsibilities

Change management competency


Asset Management Objectives

Essential link between the organizational objectives and the asset management plans

Established at relevant functional levels


CREATING THE POLICY


Requirements for AM Policy

1 Consistency

2 Appropriateness

3 Compliance

4 Principles and framework

5 Continual improvement


Policy Overview

Policy documents can contain:

1. Purpose statement2. Applicability and scope3. Effective date4. Responsibilities5. Policy statements


CREATING THE STRATEGY


Establish an Asset Management Strategy

• A strategy describes how to realize the policy • A roadmap for how to get from here to there• An approach for implementation


Roadmap

Implementation

Approach

• Defines what the organization intends to achieve from its asset management activities and by when

• Documents relationship between organizational objectives and asset management objectives

• Defines framework to achieve the asset management objectives

Asset Management Strategy


Requirements of an AM Strategy

1

2

3

4

Consistency

Risk-based approach

Lifecycle approach

Framework

5 Stakeholders

6 Functional performance

7 Continual improvement

8 Change management


ASSET MANAGEMENT OBJECTIVES



Essential link between the organizational objectives and the asset management plans



Criteria for objectives

• Transform outcomes into activities• Tailored to organization’s needs• Specific, Measurable, Attainable,

Realistic, Time-related• Aligned with organizational

objectives


Example Objectives

1. Improve availability to benchmark standards

2.Reduce hazardous chemical byproducts by 30% over 3 years

3.Assure U.S. defined environmental standards achieved in developing markets

4.Extend asset useful life through reuse of equipment

5.New capital investment will focus on total cost of ownership across asset life cycle

6. Improve organizational problem solving capabilities as a key success factor for continuous improvement


Why do this? What are the benefits?

Improved financial performance

Informed asset investment decisions

Managed risk

Improved services and reliability

Demonstrated social responsibility

Demonstrated compliance

Enhanced reputation

Improved organizational sustainability

Improved efficiency and effectiveness


Questions?

Randy HeislerLife Cycle Engineering

[email protected] www.LCE.com

mailto:[email protected]

http://www.lce.com/

iso 55000 overview

Engineering

life cycle engineering

asset management strategy

definitions asset

definitions iso

important iso

quality iso

environmental iso

standardization iso