Peter Way - Institute of Public Works Engineering Australia - INDUSTRY UPDATE: ISO 55000: how will the new suite of Asset Management Standards impact
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Peter Way - Institute of Public Works Engineering Australia - INDUSTRY UPDATE: ISO 55000: how will the new suite of Asset Management Standards impact

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Peter Way, Chair – National Asset Management Strategy Australia, Institute of Public Works Engineering Australia delivered this presentation at the Asset Management and Maintenance Conference. This......

Peter Way, Chair – National Asset Management Strategy Australia, Institute of Public Works Engineering Australia delivered this presentation at the Asset Management and Maintenance Conference. This conference addressed the effective maintenance strategies for a variety of private and public assets.

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  • 2. IPWEA and NAMS.AU – Who are we? •  ‘Not for profit’ Member based organisation •  Public works professionals – Australia and NZ •  Infrastructure Asset Management – NAMS •  Tools and resources for practitioners •  Networking •  Policy advocacy •  ISO Standards for Asset Management
  • 3. Guidelines provide a national approach
  • 4. Some Key Questions •  What benefits will the standards deliver? •  How will they integrate with other management systems? •  Will they replace existing manuals and practice guides - such as IIMM? •  Will they create a stimulus for new guidance and practice?
  • 5. Presentation Agenda 1.  Current status of the ISO Asset Management Standards Development 2.  An overview of the ISO 55000 suite of asset management Standards 3.  Address the foregoing questions 4.  Implications for Infrastructure Operators 5. Your Questions Slide 5
  • 6. The International Writing Committee •  PC 251 –  has 31 Member Countries –  has 12 Observer Countries •  Five Meetings of PC 251 over 3 years
  • 7. Australian Representation on ISO PC 251 Asset Management •  Main Sectors involved: –  Academia – UWA (Chair) –  Water – WSAA and AWA –  Energy – Energy Networks Australia –  Infrastructure – IPWEA –  Mining – CRC Mining –  Industry – AMC –  Defence – ADO –  Unions - APESMA
  • 8. Timeframe •  FDIS Ballot about to close
  • 9. Standards Contents •  The ISO 55000 suite includes: –  ISO 55000 Asset management – Overview, principles and terminology –  ISO 55001 Asset management – Management System - Requirements –  ISO 55002 Asset management – Management systems - Guidelines on the application of ISO 55001
  • 10. Development Inputs •  PAS 55 an early catalyst – BUT new Standards more generic •  ISO Management System Standards preparation guidelines: –  ISO Joint Technical Co-Ordination Group •  Common Language •  Standard terminology –  Consistency with other Management Systems; •  Risk •  Environmental •  Quality
  • 11. ISO Management System Standard Format •  One of the first ISO MS Standards to be published with the ISO common High Level Structure (as per Annex SL) •  ISO 9001 and ISO 14001 are currently working on their re write which will align them with ISO55000 and all future management system standards. •  ISO 17021/5 Competence Requirements for Certification and Auditing approved.
  • 12. Some Key Issues •  All about a MANAGEMENT SYSTEM for asset management •  “What to do” NOT “How to do it” •  Can be applied to ANY assets – not just Physical assets •  Each organization determines scope which assets involved •  Asset Lifecycle approach- Life Stages to suit each organization •  Strong focus on risk management
  • 13. Who will use these Standards? – Those establishing, maintaining or improving an asset management system, – Those delivering asset management activities and service providers, – Internal and external parties assessing conformance of the organization’s ability to meet legal, regulatory and contractual requirements and the organization’s own requirements.
  • 14. Why will they be used? •  Because it is good business practice •  To foster better organizational management processes •  To drive continuous improvement •  To satisfy stakeholders seeking assurance about how well the assets are managed •  Because regulators or legislation dictates such and maybe requires third party certification •  Competitive advantage •  Insurers require it.
  • 15. Some Definitions Asset: Item, thing or entity that has potential or actual VALUE to an organization Item can be physical or non-physical. The value will vary between different organizations and their stakeholders. Value can be tangible or intangible, financial or non-financial. Can be applied to all types of assets and by all types and sizes of organizations.
  • 16. Asset Management & AM System • Asset Management: – Coordinated activities of an organisation to realise value from assets in the delivery of its outcomes or objectives – Involves balance of costs, risks and benefits - over time • AM System: – A set of interrelated or interacting elements of an organization, that establish asset management policies and objectives, and the processes needed to achieve those objectives.
  • 17. Relationship between Key Terms Fig 1 DIS 55000 Managing   the   Organisation Asset   Management Asset   management   system Asset   portfolio Coordinated  activity  of   an  organization  to  realize   value from  assets Set  of  interrelated  or   interacting  elements to   establish  AM  policy,  AM   objectives    and  processes   to  achieve  those   objectives Assets  that  are  within   the  scope  of  the  asset   management  system
  • 18. 55000 - Asset Management Fundamentals Assets exist to provide value to the organization and its stakeholders Asset management is not about just the assets, but the value they can provide to the organization and stakeholders – via services or products Alignment Asset management translates the organizational objectives into technical and financial decisions, plans and activities.
  • 19. 55000 - Asset Management Fundamentals Leadership and workplace culture are critical Leadership and commitment from all managerial levels is essential for successfully establishing, operating and improving asset management within the organization. Asset management assures that assets will fulfill their required purpose The need for assurance arises from the need to effectively govern an organization.
  • 20. Asset Management System •  Context of the organisation •  Leadership •  Planning •  Support •  Operation •  Performance evaluation •  Improvement Fig C1 DIS 55000
  • 21. ISO 55001 •  Specifies the requirements for a management system for asset management – 73 “Shalls” •  Apply in entirety – But Scalable to suit organisation needs •  Focus on physical Assets – but can apply to All Assets – Eg. non-physical assets such as leases, brands, intellectual property rights, reputation or agreements.
  • 22. ISO 55001 - Asset Management System Key issues: •  Implements the 55000 Standard Fundamentals •  Organisation chooses which ‘assets’ to apply ISO 55001 to. •  Integration of technical and financial, in particular: AM decision making processes Accrual accounting and IFRS requirements Uses risk based decision making – that produces a balance between risk, cost and performance outcomes
  • 23. 55001 – Overview of Contents •  Context of the Organisation –  Needs/Expectations of Stakeholders incl Customers –  Scope of the AM system and to which assets it will apply. •  Leadership and Commitment –  AM Policy –  Roles, responsibilities and authorities •  Planning – for both the AM System and AM –  Risks and Opportunities –  AM Objectives and Strategic AM Plan (SAMP)
  • 24. Content Cont’d •  Support – for both the AM System and AM – Resources, Competence, Awareness – Communication – Information management •  Operation and Control – Change management – Outsourcing
  • 25. Content Cont’d •  Performance Evaluation – Monitoring and Review – Auditing •  Improvement – Nonconformity – Corrective and Preventive Action – Continual improvement
  • 26. Asset Management Plans Includes (amongst other requirements): 1.  What will be done and by who 2.  The timescales for the plan 3.  Resource needs for the plan (including financials) 4.  Risks associated with the plan and how they are mitigated 5.  Review period for the plan
  • 27. Drivers for Applying the Standards
  • 28. What will the Standards deliver? •  A Framework for a consistent Management System approach to AM. •  Greater commitment at Senior Management level. •  Better integration of asset management and financial management. •  More effective asset management process. •  A positive contribution to Australia’s infrastructure/industrial competiveness.
  • 29. A step forward or a step backwards? •  Forwards if applied: •  To improve business processes •  Not just for compliance sake •  At a level appropriate to organisation needs •  To deliver better outcomes for stakeholders §  Backwards if applied: •  Only to demonstrate compliance with Standard. •  To a level where resources needed outweigh benefits •  Not aligned to corporate strategic needs
  • 30. Will it replace existing manuals and practice guides - such as IIMM? •  My view – Answer is resounding NO! •  IIMM provides the necessary “How To” meet the Standards requirements. •  However the IIMM does need to recognise and be tailored to work with the ISO Standards.
  • 31. IIMM Update – Status Report •  Commenced mapping process to identify Sections from IIMM against the 55001 Requirements. •  More in IIMM and sequence does not follow ISO – is this a concern? •  Producing an Addendum to highlight how to apply the IIMM in meeting ISO 55001 requirements.
  • 32. Will the Standards create a stimulus for new guidance and practice? •  Can if applied appropriately and not just for sake of compliance. •  Lessons can be learned from a more globally consistent approach. •  Promoting integration of management systems can break down silos. •  Look at any gaps between current practice and what is promoted in the Standards.
  • 33. IPWEA Policy on the ISO Standards •  All infrastructure orgs should consider for benefits from applying a MS approach. •  Governments to promote at level appropriate to business/community needs. •  Not prescriptive – apply to those assets and at level appropriate to stakeholder needs. •  Not just for compliance – part of overall management approach. •  Orgs to decide on appropriate level of certifying compliance.
  • 34. To Audit or Not for Compliance? •  What will your stakeholders expect? •  What are the costs/benefits? •  Concern regarding the competence – Auditors in the AM MS field. •  IPWEA in discussions with AMC (and others) – to establish a technical evaluation process for AM Auditors.
  • 35. Next Steps on ISO? •  Standards Australia to resolve through MB19 Committee whether to adopt or modify. •  ISO Standards likely to be in place by beginning of next year. AS/ISO in second half 2014. •  IPWEA to run series of 1 day workshops to raise awareness and assist in implementation. – Highlight Policy – Using the IIMM as “How To” guide.
  • 36. What will be your organization’s position on the Standards? •  Consider application for pursuit of good practice? •  Voluntarily apply to satisfy stakeholders? •  Apply and look to self-certify compliance? •  Apply with third party accreditation? •  Wait and see what Government or Regulator requires? Ignore at your peril?
  • 37. Your Questions? Peter Way PSM