Status of the ISO Asset Management System Standard

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1 Status of the ISO Asset Management System Standard Michael E. Poland, CMRP Board Member, ANSI Corporate Member, IAM Director of Asset Management, Life Cycle Engineering

2 ISO Asset Management Systems The release of ISO 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? 2

3 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 3

4 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 4

5 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 5

6 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 6

7 US/TAG Participating Organizations E-ISG Asset Intelligence Stratum Consulting Partners Test7

8 ISO/TC251 Participating Countries 1. Argentina 2. Australia 3. Canada 4. Chile 5. China 6. Czech Republic 7. Denmark 8. Finland 9. Germany 10. India 11. Ireland 12. Italy 13. Republic of Korea 14. Netherlands 15. Mexico 16. Norway 17. Peru 18. Portugal 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 8

9 Timeline Status Mar 2011 Oct 2011 Feb 2012 Jun 2012 April 2013 Feb 2014 Month Stage Working Drafts Cttee Drafts DIS Comments Resolution FDIS May 2011 Distribute WD2 Sep 2011 WD2 Comments RCVD CD2 For Ballot DIS February 2014 CD1 For Comment 9

10 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 10

11 11

12 ISO 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 12

13 ISO Series Structure ISO 55000: Overview, Principles and Terminology ISO 55001: Requirements ISO 55002: Guidelines 13

14 ISO 55000: Definitions Asset something with potential value to an organization and for which the organization has a responsibility 14

15 ISO 55000: Definitions Asset something with potential value to an organization and for which the organization has a responsibility Value! 15

16 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 16

17 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 17

18 ISO Series Structure ISO 55000: Overview, Principles and Terminology ISO 55001: Requirements ISO 55002: Guidelines 18

19 ISO and The ISO and ISO documents share the same structure ISO covers requirements ISO covers guidance The details are of course not yet finalized, but key concepts are unlikely to significantly change 19

20 ISO 55001/55002 Structure The Organization Leadership Plans Support Operation Performance Evaluation Improvement 20

21 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 21

22 Leadership Top management involvement Continual improvement AM integrated with business processes Adequate resources available Establish an Asset Management Policy Alignment with organizational strategic plan 22

23 Plans Establish an Asset Management Plan Measurable objectives Risk management Monitored and communicated 23

24 Support Provide necessary resources Assure competence of people doing the work Awareness Information requirements Documentation 24

25 Operation Process control Change management Control of any outsourced activities 25

26 Performance Evaluation Monitor and measure Analysis and evaluation Internal audit Management review 26

27 Improvement Nonconformity and corrective action Preventive action Continual improvement 27

28 Management Systems Assessments Has anyone participated in an ISO 9001 assessment audit? Other ISO Management System Audits? If you have, ISO assessment audits will likely look very familiar 28

29 What s in it for your organization? ISO 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 organization s assets The opportunity to differentiate your organization 29

30 What s 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 30

31 Awareness Actions Personal awareness Organizational awareness Become an ISO expert Develop change management skills Build AM relationships across organizational silos Realize value from organizational assets Start Now! 31

32 Three Word Summary 32

33 Three Word Summary Value 33

34 Three Word Summary Visibility 34

35 Three Word Summary Opportunity 35

36 Three Word Summary Value Visibility Opportunity 36

37 What s 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

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