the iso 55000 asset management standard what does … · the asset management system in iso 55000...
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THE ISO 55000 ASSET MANAGEMENT STANDARD
What does this mean for my organization?
Salman Zafar, Advisor, Corporate Asset Management
Vanessa Chau, Manager, Corporate Asset Management
City of Brampton
AGENDA
• Introduction - City of Brampton
• Brampton’s Corporate Asset Management Journey
• ISO 55000 Standard for Asset Management
• Assets, Asset Management & Asset Management System
• Asset Management Planning Regulation in Ontario
• Brampton’s Corporate Asset Management Road Map
• Brampton’s Corporate Asset Management Governance Structure
• Benefits of Alignment with ISO 55000
• Key Takeaways
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CITY OF BRAMPTON
Brampton’s Corporate Asset Management Journey
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Corporate Asset Management Office
▪ Representation from all Service Areas in
Corporate Asset Management Network
▪ Developed a Corporate AM Plan to meet
requirements of Federal Gas Tax Agreement
▪ Council Endorsed Corporate AM Roadmap
Asset Management Planning Regulation
▪ Strategic Asset Management Policy
▪ Comprehensive Asset Inventory
▪ Levels of Service Framework
▪ Integration with Financial Planning
Training & Innovation Centre
▪ Launched Asset Management Training and
Innovation Centre
▪ 100+ Graduates to date
Future Ready Brampton
▪ Evidence Based Decision Making
▪ Sustainable Levels of Service
▪Alignment with ISO 55000
2016 2018 - 2024 2024+2017
ISO 55000 Standards for Asset Management
• ISO 55000 series represent a global consensus on asset management. They provide the terminology, requirements and guidance for implementing, maintaining and improving an asset management system:
➢ ISO 55000: Overview, Principles and Terminology
➢ ISO 55001: Management Systems – Requirements
➢ ISO 55002: Management Systems – Guidelines for application
• Increase value generated by organization by identifying the best means to integrate all activities within that organization to achieve its purpose efficiently and effectively.
• Best Means => Extract maximum value from assets by balancing risk, cost, and asset performance.
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Objectives of ISO 55000
• Identify Value assets provide.
• Alignment between technical, financial and operational decisions that collectively enable the achievement of corporate objectives.
• Leadership and commitment from top management in using asset management as an evidence based decision making framework.
• Assurance that assets will continue to fulfill their required purpose.
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What’s an Asset? It’s All About the Value!
➢ An asset is “a thing, item, or entity that has potential or actual value to an
organization.”
➢ Assets fundamentally exist to provide value to customers.
➢ In municipal context, what’s the value of our infrastructure assets ???
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Brampton’s Infrastructure Assets
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Information Technology
Condition: Good
Fire
Corporate Fleet
Parks
Stormwater
Animal Services
Corporate Facilities
Library
Recreation & Culture
Service Brampton
Condition: Fair
Condition: Fair
Condition: Good Condition: Good
Condition: GoodCondition: Good
Condition: Fair
Condition: Good
Condition: Fair
Condition: Good
Condition: Good
Overall Condition: Good
Total Replacement Value: $5.5 Billion
Transportation
Transit
What is Asset Management?
• “Coordinated activity of an organization to realize value from its assets.”
• Asset Management “involves the balancing of costs, opportunities, and risks against
the desired performance of assets, to achieve the organizational objectives.”
(Source: ISO 55000)
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Value Based Decision Making
• Identify the criteria that brings the greatest value to the organization.
• Prioritize Investments based on value and constraints.
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• Maximize Value for Money:
Balance between life-cycle costs, desired quality, performance,
service levels and environmental, social and economic impacts.
(Source: IAM)
Value Based Decision Making
Which of the following is not a value metric?
a) Reputation (consequence of failure)
b) Reliability (probability of failure)
c) Safety (consequence of failure)
d) Cost (consequence of failure)
e) Environment (social responsibility)
f) Resilience and Interdependency (consequence of failure)
g) Customer Service (consequence of failure)
h) Regulatory Compliance (consequence of failure)
i) Impact on Strategic Objectives (election commitments)
j) Community Attachment (culture and heritage)11
The Asset Management System in ISO 55000
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Clarity about organizational
priorities and goals
(Source: ISO 55000)
• Set of interrelated and
interacting elements that set
the asset management policy,
strategies, plan, processes
and asset information systems
to ensure that organizational
objectives are met.
• Means by which an
organization practices the
discipline of asset
management
Asset Management Line of Sight in ISO 55000
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Asset Management Line of Sight in ISO 55000
Lin
e o
f Si
ght
(Source: ISO 55000)
Clear understanding of
how assets enable the
organization to attain
its corporate objectives
IAM’s Asset Management Framework: How the Asset Management System Works?
15(Source: IAM)
Brampton’s 2016-2018 Strategic Plan
Brampton’s 2016-2018 Strategic Plan
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Municipal Asset Management Planning
Implications of Ontario Regulation 588/17
Strategic Policy Core Infrastructure All Infrastructure Financial Strategy Annual Review
• Define Role of Council and
senior management
• Integration with Budgets &
Long-Term Financial Plan
• Alignment with Official Plan
• Alignment with Master Plans
• Community Engagement
• Climate Change Mitigation &
Resiliency
• Phase 1: Roads, Bridges
& Stormwater
• Inventory of Assets
• Current Levels of Service
• Cost to Maintain Current
Levels of Service
• Phase 2: All Assets
• Inventory of Assets
• Current Levels of Service
• Cost to Maintain Current
Levels of Service
• Builds on Phase 1 & 2
• Proposed Levels of Service
based on Sustainability &
Affordability
• Lifecycle Management
• Financial Strategy
• Annual Update to
Council
• CAM Plan update
every 5 years
Asset Management System for Ontario Municipalities
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Strategic Asset Management Policy
Levels of Service Strategy
Financial Strategy
Risk Management Strategy
Corporate Asset Information Strategy
Asset Management Governance Strategy Communication
Strategy
Asset Lifecycle Management Strategy Demand
Management Strategy
Maintenance Management
Strategy
State of Local Infrastructure Report
Service Area Asset Management Plans
Corporate Asset
Management
Strategies
Corporate Asset Management Plan
Corporate Strategic Plan, Official Plan and Master Plans
Core Assets: Roads, Bridges, Stormwater
All Other Assets: Transit, Fire, Fleet, Parks, Recreation, Facilities, IT,
Library, Animal Services, Service Brampton, etc.
Ongoing Improvements
Ongoing Improvements
Ongoing Improvements
Ongoing Improvements
Ongoing Improvements
Ongoing Improvements
Corporate
Asset
Management
Roadmap
High Priority
Initiatives
Strategic Asset
Management PolicyCore Infrastructure Plan All Assets Plan
All Infrastructure Assets
Target Levels of Service &
Financial Strategy
2018 2019 2020 2021 2022 2023 2024
People P1. AM Governance
Strategy
S5. Develop a Corporate
Asset Information
Strategy
S7. Integration with
Official Plan & Master
Plans
S15. Develop AM
Strategies
Assets
A1. Enhance & Maintain
Comprehensive Asset
Registry
A13. Linear Assets
Registry
S9. Develop &
Implement AMPs by
Service Area
Business
Processes
BP6. Comprehensive
CAM prioritization into
Financial Budgeting &
Long-term Financial
Plan
Technology
A12. CWMS
Implementation
T1. Integration with
Technology Masterplan
Brampton’s Corporate Asset Management (AM) Governance Structure
Corporate Leadership Team
Asset Management Steering Committee
Council
AM Network AM Technical LeadsCorporate AM Office
Directly involved in delivering
the services: 80+ staff
Strategically develop, administer and
support asset management activitiesImplements the CAM Roadmap in
collaboration with the AM Technical Leads
Approves and endorse strategies and plans.
Council reviews progress annually
Provides guidance on
high priority initiatives
Benefits of Alignment with ISO 55000
• Informed asset investment decisions
• Demonstrated compliance
• Enhanced reputation
• Improved organizational sustainability
• Improved efficiency and effectiveness
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“integrate all activities”
“lose the silos mentality”
Brampton’s Asset Management Maturity Assessment
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Where we are Where we want to be
Conclusion: It’s a Way of Doing Business!
• Ensures resources are wisely invested
• Continually balances performance, risk and expenditures
• Ensures customer levels of service are met
• Ensures that organization strategic plans are delivered
• Does all this in the most efficient and cost effective manner
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