1. Achieving and Sustaining
PAS 55 Compliance Using
Meridium APM
by Joel Barger, Project Director
and Product Manager, Meridium

2. 2 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
Introduction
The replacement asset value for an organization, public
or private, regulated or non-regulated, having a high
dependency on physical infrastructure or equipment,
can easily run in the neighborhood of $3,000,000,000.
It stands to reason then, that an organization's physical
assets represent a significant shareholder investment
deserving management attention.
This important fact has been recognized and addressed
in the Publicly Available Specification (PAS) 55:2008
Asset Management standard, developed in collabora-
tion with the British Standards Institute and The
Institute of Asset Management. The standard address-
es the growing recognition of how poorly managed
assets negatively affect the safety and profitability of an
organization.
Meridium’s comprehensive approach to Asset
Performance Management enables industry proven
work processes to maximize physical asset performance,
mitigate risk and optimize cost across the business
enterprise. As outlined in the following pages,
Meridium's Asset Performance Management software
not only meets PAS 55 requirements for establishing
the infrastructure and support to meet the lifecycle
requirements of an asset or system, but accelerates
results and provides the necessary framework for sus-
taining asset performance gains.
Alignment of PAS 55 Asset Management
System Elements Using Meridium Value
Assurance Program
PAS 55 defines the need for an overall strategic plan
that outlines vision, policies, goals and organizational
strategies. It is not the objective of PAS 55 to define
what that looks like within an organization. Instead,
PAS 55 starts with the definition of an asset manage-
ment policy statement that is clearly aligned with the
overall corporate strategy. This then drives the asset
management strategy, objectives, and plans.
The PAS 55 specification's main focus then becomes a
definition of what processes are "in scope" and "out of
scope" with regards to the specification requirements.
As illustrated in Figure 1, the specification acknowl-
edges the criticality of the Organizational Strategic
plan, but it is out of scope with regards to fully defin-
ing its requirements.
Development of the in-scope practices cannot begin
until there is an agreed-upon vision, mission and value
statement. Key stakeholder expectations must be
defined, and the business drivers for change must be
fully understood. You cannot begin defining asset man-
agement policies unless you know the organizational
policies. You cannot determine asset strategies and
goals unless you know the overall company strategies
and goals.
Meridium Value Assurance
Program (MVAP)
In support of the PAS 55 focus on aligning asset man-
agement policies, strategies, objectives and plans,
Meridium offers the Meridium Value Assurance
Program (MVAP). However, unlike PAS 55, which
takes a more general asset management approach in
defining strategic plans, policies and objectives, MVAP
places a greater emphasis on the ability of an organiza-
tion to implement and sustain an effective asset man-
agement program.
Like PAS 55, Meridium’s Value Assurance Program
recognizes the role that careful, upfront assessment of
an organization's existing business drivers, processes,
Figure 1 © PAS 55-2:2008, Asset Management, ICS code: 03.100.01,
Part 2: Guidelines for the application of PAS 55-1

3. 3 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
culture and technology will ultimately play in the suc-
cessful development, implementation, and sustainabili-
ty of asset performance improvements.
As stated in clause 0.7 of the PAS 55 specification,
there are many questions a company must ask itself to
achieve its organizational plan and provide assurances
to its stakeholders, including:
• Do we know what assets we have, where
they are, what condition they are in, what
function they perform, and their contribu-
tion to value?
• Are we getting the most value out of our
assets?
• Can we readily evaluate the benefits (per-
formance, risk reduction, compliance, and
sustainability) of proposed work or invest-
ment and, conversely, quantify the total
impact to the organization of not perform-
ing such work, not investing, or delaying
such action?
• Do we review the appropriateness of our
asset management strategy in the light of
changes in operating, regulatory and finan-
cial environment?
MVAP helps companies answer these PAS
55 specification questions. Beginning with
an MVAP assessment, an organiza-
tion's business drivers are identi-
fied. As seen in Figure 2, these
business drivers determine asset
management objectives, and asset
management objectives highlight
value opportunities. The MVAP
assessment process is used to reveal
the potential benefits and return-
on-investment for each business
driver.
PAS 55 Compliance
Improvement Areas
The MVAP Maturity Model
(Figure 3) identifies six manage-
ment systems (domains) and their
corresponding objectives. Within
each of the six domains are five key
elements (each comprised of mul-
tiple work processes) required for
successful performance within each
domain. The model takes into account equipment
tactics, asset optimization practices, planning and
scheduling, knowledge management, change manage-
ment, and other critical organizational factors.
As seen in Figure 4, using the Maturity Model, the
MVAP assessment determines an organization's matu-
rity level for each domain. An organization must
Figure 2: MVAP Value Map © Meridium 2010
Figure 3: The Meridium Asset Performance Management Maturity Model
© Meridium 2010

4. 4 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
obtain and sustain a minimal level of proficiency in
each of these domains in order to position them to
meet the guidelines of PAS 55.
Work Processes as Key Influencer
of Domain Maturity
A key influencer of domain maturity is the successful
management of the five elements associated with
each domain. Central to the successful manage-
ment of these elements are industry-proven work
processes. Meridium Asset Performance
Management (APM) software solutions, incorpo-
rating industry best practices, rigorous analytics,
and seamless integration to EAM/CMMS and
operational sources, enable APM work processes
aligned to specific domain elements.
Figure 5 represents a high-level overview of a
work process for the element Strategy & Risk
Management, in the APM Asset Integrity
domain. It illustrates the interaction between
objectives, work processes, solutions, and the
continuous improvement process. These docu-
mented, systematic processes provide an audit
trail for the overall asset management system, as
well as a means for conducting management
reviews of the processes and their current state.
Developing an Implementation
Management System Structure
Implementation of the PAS 55 Management System
Structure (Figure 6) illustrates a best practice, closed-
loop asset management model. In simple terms, the
implementation framework is characterized by:
• PPllaann - Establish the asset management strategy,
objective and plans necessary to deliver results in
accordance with the organization's asset manage-
ment policy and the organizational strategic plan.
• DDoo - Establish the enablers for implementing asset
management and other necessary requirements and
implement the asset management plans.
• CChheecckk - Monitor and measure results against asset
management policy, strategy, objectives, legal and
other requirements, record and report the results.
• AAcctt - Take actions to ensure that the asset manage-
ment objectives are achieved and to continually
improve the asset management system and asset
management performance.
As shown in Figure 7, the PAS 55 framework corre-
lates with the closed loop, continuous improvement
APM approach supported by Meridium software.
Figure 4 (Note: Current maturity levels are represented by blue;
desired levels are represented by green.)
Figure 5: Strategy & Risk Management Work Process
© Meridium 2010
© Meridium 2010
© Meridium 2010

5. 5 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
Meridium Strategy Development
The Meridium Strategy Development stage cor-
responds to the PAS 55 “Plan” stage. As shown
in Figure 7, the Meridium Strategy Development
stage encompasses multiple methodologies and
software applications for developing asset strate-
gies including RReelliiaabbiilliittyy CCeenntteerreedd MMaaiinntteennaannccee,
RRiisskk BBaasseedd IInnssppeeccttiioonn, SSaaffeettyy IInnssttrruummeenntteedd
SSyysstteemm ((SSIISS)) MMaannaaggeemmeenntt, and HHaazzaarrddss
AAnnaallyyssiiss. All utilize a common recommendation
management model allowing asset strategies to
be maintained in the most efficient manner.
The best approach for an organization is one
aligned with the organization's defined asset
management policy, which is established during
the MVAP assessment.
Meridium Asset Strategy Management
The Meridium AAsssseett SSttrraatteeggyy MMaannaaggeemmeenntt
(ASM) solution corresponds to the PAS 55
planning (“Plan”) and execution (“Do”)
clauses. First, as a planning tool, once a
strategy has been defined through the uti-
lization of the strategy development
methodologies included in the Meridium
Asset Strategy Development stage, analyti-
cal models can be applied to understand the
risk and financial impact of strategy imple-
mentation. Risk assessments can be per-
formed on individual assets or the evalua-
tion can be performed on a system or unit
level.
If no previous strategies have been devel-
oped, ASM can be used as the enabler for
the development of strategies. (This is
where, in the continuous closed loop
improvement process, strategies will be
maintained and updated.) Likewise, ASM
is also a PAS 55 “enabler,” providing com-
plete tracking of strategy history, as well as
allowing the creation and maintenance of
master strategies which can be applied as a
standard for assets of a similar class.
Meridium AAsssseett SSttrraatteeggyy IImmpplleemmeennttaattiioonn (ASI) func-
tionality aligns with PAS 55 clauses for
“Implementation of Asset Management Plans.” ASI
enables asset strategies to be packaged for implementa-
tion in an efficient manner.
Meridium AAsssseett SSttrraatteeggyy OOppttiimmiizzaattiioonn (ASO) func-
tionality allows existing asset strategies to be optimized
in support of the complete life cycle of the asset, sup-
porting the PAS 55 recognized need for a “joined up”
approach to asset management.
Figure 6: The PAS 55 Management System Structure
© PAS 55-1:2008, Asset Management, ICS code: 03.100.01,
Part 1: Specification for the optimized management of physical assets
Figure 7: The Meridium continuous improvement structure
© Meridium 2010

6. 6 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
Meridium Strategy Execution
The Meridium Strategy Execution stage provides sup-
port for the PAS 55 “Do” stage through common work
processes and methodologies to determine and docu-
ment the current condition of assets and execution of
prescribed strategies, complimenting the core function-
ality and features of enterprise asset management
(EAM) systems, predictive systems and process histori-
ans. In this stage, Meridium provides software func-
tionality and work processes such as CCaalliibbrraattiioonn
MMaannaaggeemmeenntt, IInnssppeeccttiioonn MMaannaaggeemmeenntt, TThhiicckknneessss
MMoonniittoorriinngg, LLuubbrriiccaattiioonn MMaannaaggeemmeenntt and OOppeerraattoorr
RRoouunnddss.
These Meridium software modules correlate to the
PAS 55 “Performance Assessment and Improvement”
clauses, specifically, the PAS 55 requirements for mon-
itoring and measurement of tools (also supported with
Meridium’s SSIISS MMaannaaggeemmeenntt application in the
Strategy Development Stage), facilities and equip-
ment. (Program gaps are identified earlier during a
MVAP assessment.)
Strategy Evaluation
The Meridium Strategy Evaluation stage offers func-
tionality in support of the PAS 55 “Check” stage.
Meridium provides a complete asset management sys-
tem to assess and quantify the performance of your
assets as specified by PAS 55 Clause 4.6 “Performance
Assessment and Improvement.” By leveraging data
collected through maintenance execution (work
orders) and condition assessment and inspections
(monitoring, inspection, predictive data, process histo-
rians), Meridium analytical engines provide insight
into how assets are performing relative to their overall
strategies.
Other “Check” stage solutions in the Meridium
Strategy Evaluation stage include:
• Meridium MMeettrriiccss && SSccoorreeccaarrddss, AAsssseett HHeeaalltthh
IInnddiiccaattoorrss, PPrroodduuccttiioonn LLoossss AAccccoouunnttiinngg, and
RReelliiaabbiilliittyy AAnnaallyyttiiccss are used in complying with
4.6.1 “Performance and Condition Monitoring”
requirements.
• Meridium RRoooott CCaauussee AAnnaallyyssiiss software and work
processes address 4.6.2 “Investigation of Asset-relat-
ed Failures, Incidents, and Nonconformities.”
For an asset management process to be continuous, or
“living,” it must support a closed loop system, and, in
PAS 55 vernacular, you must complete the processes
with action (“Act”).
Meridium’s Asset Performance Management software
platform utilizes these four stages to form a closed-loop
approach that incorporates a recommendation man-
agement system, common to all of the functionality
previously outlined. Recommendations are the direct
outcome of a process, such as reliability centered main-
tenance, failure modes and effect analysis, or root
cause analysis. Recommendations are typically associ-
ated with the need to perform additional actions cap-
tured during the “execution” stage workflows such as
inspection or operator rounds. The recommendations
produced from the “evaluation” stages are typically the
result of more complex analyses using data from multi-
ple sources. In all cases, the recommendations created
are used to improve asset strategies as part of the con-
tinuous improvement process.
Meridium Asset Performance
Management and PAS 55
Meridium Asset Performance Management is an end-
to-end approach to the management of equipment
assets. Beginning with a Meridium Value Assurance
(MVAP) assessment, companies:
1. align asset performance objectives with key business
drivers,
2. measure their current maturity levels in each of six
key areas,
3. identify strengths and weaknesses of work processes
within these man-
agement areas,
and
4. then develop,
implement, meas-
ure, and adjust
asset management
strategies on a
continual basis.
Similarly, the PAS
55 specification out-
lines what it refers to
as “dimensions of
joined-up asset man-
agement.” That is,
Figure 8: PAS 55 Key Principles
© PAS 55-1:2008, Asset Management, ICS code: 03.100.01,
Part 1: Specification for the optimized management of physical assets

7. 7 Achieving and Sustaining PAS 55 Compliance Using Meridium Asset Performance Management
asset management is a holistic view that can unite dif-
ferent parts of an organization together in pursuit of
shared strategic objectives. In summary, Meridium
Asset Performance Management addresses the PAS 55
key principles shown in figure 8 as follows:
HHoolliissttiicc - looking at the whole picture. Meridium pro-
vides a central location for all asset management data
to be developed, collected, analyzed, audited, and eval-
uated. All information related to an asset can be
found in one single datasheet view. Baseline product
interfaces enable bi-directional information transfer to
SAP and other EAP/CMMS systems.
SSyysstteemmaattiicc - a methodical approach. Achieving excel-
lence in asset management is not a destination, it is a
journey. Using MVAP to evaluate where a company is
in their asset management journey, combined with best
practice workflows, provides a continuous improve-
ment path.
SSyysstteemmiicc - considering the assets in their asset system.
The Meridium AAsssseett SSttrraatteeggyy MMaannaaggeemmeenntt functional-
ity enables the roll-up of assets into systems and units.
RCM functionality allows groupings of assets based on
user-determined system boundaries. Meridium
RReelliiaabbiilliittyy AAnnaallyyttiiccss also features System Reliability,
an application where users can simulate future reliabil-
ity, availability, and maintainability across an entire
equipment system based upon historical asset perform-
ance.
RRiisskk--BBaasseedd - focusing resources and expenditure, and
setting priorities, appropriate to the identified risks.
Meridium subject matter experts identify the optimal
risk matrix dimensions to use for an organization. The
risk model can be applied to both RRCCMM and AAsssseett
SSttrraatteeggyy MMaannaaggeemmeenntt risk analyses. In Meridium,
both unmitigated and mitigated risk is always in view
as strategies are developed and modified. Meridium
HHaazzaarrddss AAnnaallyyssiiss software provides an overall risk
management work practice that is focused on identify-
ing risks, assessing the risk level and managing the
reduction of those risks. Meridium’s Hazards Analysis is
an enterprise level solution based on international haz-
ards analysis standards, and - along with other
Meridium solutions including RReelliiaabbiilliittyy CCeenntteerreedd
MMaaiinntteennaannccee, RRiisskk BBaasseedd IInnssppeeccttiioonn and AAsssseett
SSttrraatteeggyy MMaannaaggeemmeenntt - addresses the need to analyze,
maintain, manage and follow through on safety related
recommendations as well as address compliance
requirements.
OOppttiimmaall - establishing the best value compromise.
The optimal value when evaluating performance, cost
and risk factors is all relative to both your strategic
organizational goals and your individual asset manage-
ment policies. At an asset strategy level, the
Meridium AAsssseett SSttrraatteeggyy OOppttiimmiizzaattiioonn functionality
and AAsssseett SSttrraatteeggyy MMaannaaggeemmeenntt “what-if” capability
help achieve optimal asset management results relative
to current strategic objectives.
SSuussttaaiinnaabbllee - considering the long-term consequences
of short-term activities. Here, PAS 55 is concerned
with future requirements and obligations such as eco-
nomic or environmental sustainability, system perform-
ance, societal responsibility, etc. While this require-
ment takes us well beyond the focus of just assets,
Meridium addresses these factors through the design of
the risk matrix. The matrix design is based on the
identification and documentation of all long-term con-
cerns. The closed-loop nature of the Meridium
approach ensures sustainable long-term safety, reliabili-
ty and value.
IInntteeggrraatteedd - recognizing that interdependencies and
combined effects are vital to success. Integration of all
of the above concepts delivers a joined up approach
and net value. It is the integration of multiple work
processes that provide the “line of sight” (PAS 55 0.4)
between the strategic direction and the day to day
activities. While there is no requirement in PAS 55 for
the use of a system, Meridium allows you to obtain a
“line of sight’ through the integration of work process-
es necessary in achieving the key principles and attrib-
utes of asset management.
The two center “pillars” of the Meridium Maturity
Model (Figure 4) highlight the ten key APM work
processes that are described as “enablers” by PAS 55.
1. Life Cycle Management
2. Reliability in Design
3. Recommendation Management
4. Investigative & Analytical Processes
5. Opportunity Identification
6. Safety Instrumented System Management
7. Mechanical Integrity
8. Strategy & Risk Management
9. Asset Condition Assessment
10. Risk Assessment

8. A fully integrated model requires people, processes,
and technology functioning together. Each Meridium
work process is supported by best practice workflows
(how-to’s), training based on these workflows, and
facilitation to help individuals understand their data.
Metrics are then used when executing the strategies to
evaluate current state and progress direction.
Analytical tools determine the value that has been
achieved as the result of changes in an asset strategy.
Conclusion
Meridium provides the framework and work processes
for achieving and sustaining PAS 55 compliance, as
well as accelerating value from its implementation.
Expected benefits of the Meridium Asset Performance
Management solution include:
• Improved communications throughout the organiza-
tion resulting in higher competency, commitment
and cross-functional coordination
• Improved health, safety, and environmental perform-
ance
• Improved asset related information for making criti-
cal operational and maintenance decisions
• Long-term planning, confidence, and performance
sustainability
• Improved risk management, setting an objective bal-
ance between cost savings and asset integrity
• Standardization of asset policies across the corpora-
tion resulting in systematic processes for managing
legal, regulatory and statutory compliance
• Improved understanding of asset management con-
cepts deeper into the organization
• Greater awareness of current asset condition
About the Author
Joel Barger is Meridium’s Project Director responsible
for the Utilities market. A registered professional
engineer with more than 30 years of experience, Joel's
engineering consulting experience includes work in
the chemical, oil and gas, pipeline, electronics, power,
paper, textile, steel, machine tool and aerospace indus-
tries, as well as work for the U.S. Navy and Air Force.
Joel has a Mechanical Engineering Degree (BSME)
from Texas A&M University. His previous experience
includes: Regional Mechanical Engineer for the Power
Generation Service Division of the Westinghouse
Electric Corporation; Manager of Power Plant
Diagnostic Services for Computational System
Incorporated; and Predictive Maintenance Leader for
Houston Lighting and Power. He is the founding
Chairman of EPRI’s Predictive Maintenance Advisory
Group and a former member of the Texas A&M
Turbomachinery Advisory Committee.
During his last twelve years with Meridium he has
managed reliability and asset management projects for
Chevron, DuPont, Exxon-Mobil Chemical, Luminant
(formerly Texas Utilities), TransAlta and Xcel Energy.
He was co-designer of Meridium’s first RCM/FMEA
application and is the Product Manager for Meridium’s
Generation Management solution for the power
industry.
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