Describes an effective approach of adopting ISO 55001 for asset management

1. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
PROPOSED APPROACH TO
ASSET MANAGEMENT SYSTEM ESTABLISHMENT
(as per ISO 55001: 2014 Requirements)
@
M/s. Fourth Partner Energy Pvt Ltd

2. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
What is ISO 55001: 2014
ISO 55000 enunciates the
benefits of Asset Management
(AM) and an Asset
Management System (AMS) in
providing a structured
approach and more reliable
decision making for the
development, coordination and
control of activities undertaken
on assets, and for aligning
these activities with its
organisational objectives.
Fig: Typical Relationship between AM and the AM System

3. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Applicability of ISO 55001
• This International Standard can be applied to all types of
assets and by all types and sizes of organizations.
• This International Standard is intended to be used for
managing physical assets in particular, but it can also be
applied to other asset types.
• This International Standard does not specify financial,
accounting or technical requirements for managing specific
asset types.

4. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Benefits of ISO 55001
Improved
Financial
reporting
Significant
Cost savings
Increased resilience
and system reliability
Improved regulatory
compliance
An
enhanced
reputation

5. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Key Drivers for ISO 55001
→ Either a business decision; or
→ A contractual obligation
Asset
Management
Contractual
Obligation
Efficiency
Improvement
Improved
Operational
Control

6. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Questions to Ask to adopt ISO 55001
→ Does the top management demonstrate leadership and commitment to manage the assets optimally over their lifecycle
→ Can achievement of the organization's objectives be facilitated through the assets
→ Are both an AM policy and objectives established?
→ Are the processes required to achieve the AM objectives, in place?
→ Is the existing asset information (inventory and condition data) accurate and organized?
→ Are there efficient existing management information systems already in place to efficiently assemble, manage, analyze and use asset data?
→ Does the organization have documented processes and procedures in place to specify how organizational objectives are aligned and converted
to asset management objectives and the role of the asset team and the AMS in supporting this
→ Do all parties to the asset management process (Owner, Service Provider, Concessionaire or Operator) communicate efficiently regarding AM?
→ Are the contracts with external service providers and contractors aligned with the organization's overall asset management objectives and in
supporting the AMS?
→ Does the top management recognize the need to improve communication and interaction across functions and are there the systems and
processes to do this?
→ Are the AM processes cross-functional and equivalent for all asset groups?
→ Are the assets managed in an integrated manner, based on lifecycle considerations over a long-term and sustainable approach to decision
making?
→ Is there a framework in place for the identification, understanding and integration of the many technical standards, codes, guidelines and best
practices that affect AM?
→ Is the asset value measured, which may be in cost terms or by using other metrics such as life-expiry?
If response to
any of these
questions is not
satisfactory to
top
management,
then ISO 55001
is a RIGHT
DECISION for
the
organization

7. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Structure of ISO 55001
ISO 55001 is the international standard that helps organizations
effectively manage their assets to optimize their lifetime value.
Increased regulatory requirements, spiraling maintenance costs,
higher customer expectations, and enhanced environmental
and health and safety requirements, have all led organizations
to seek a better way of proactively managing them.

8. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
ISO 55001 Implementation Benefits and
Improvement Actions
ISO 55001 Benefit
Area
Key Success Factors Potential Risks Improvement Actions
Improved financial
Performance
• Create asset baseline
• Create financial asset
Performance Indicators
• Implement monitoring
program
• Regularly review
Performance
→ Asset baseline errors
→ Ineffective PIs
→ Ineffective financial
monitoring
→ Inadequate
 Introduce valuation of assets to monitor change
over time
 Attribute past expenditures to stretches of road
and asset elements within them
Managed risk • Understanding risks → Unexpected outcomes
→ Increased costs
→ Impact on reputation
 Introduce risk-based analysis of tactical options,
starting at strategic level and working down
 Identify safety needs of the network
 Define technical life-span of each asset
component
 Define opportunity register starting at strategic
level then work down to project
Demonstrated
compliance
• Clear objectives, well
communicated
→ Poorly understood AMS
results in noncompliance
 Rigorous training of people
 Tool driven processes
 Integrate into work culture of the organization
Contd…

9. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
ISO 55001 Implementation Benefits and
Improvement Actions
ISO 55001 Benefit
Area
Key Success Factors Potential Risks Improvement Actions
Improved services
and Outputs
• Buy-in to the principles
and objectives of the
AMS at all levels
→ Poor communication  Introduce valuation of assets to monitor change
 over time
 Adopt performance-based approach and
indicators
 KPI to cover end-to-end System
Improved efficiency
and Effectiveness
• Robust AMS processes
taken seriously at all
levels
→ ‘System’ treated as
→ box-ticking exercise
 Create robust and flexible business
management
 systems (consider integrating ISO 9001, ISO
14001, ISO 45001, SA 8000 etc. with 55001)
 Attempt to measure baseline efficiencies from
 which planning/delivery cycle to the next

10. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Implementation Approach for
Asset Management System
As per Requirements of ISO 55001: 2014

11. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
Implementation Plan and Timelines
Phase Phase wise Activities Timeline (Duration)
1 Baseline Assessment and Planning
(To understand the current practices, Map all types of Assets in the organization)
2 to 4 Weeks
2 Developing Strategic Asset Management Plan
(to map external & internal issues, stakeholder needs & expectations, scope and
boundaries of SAMP and AM processes and integration approach with other
management systems)
2 to 3 Weeks
3 Documentation
(To carryout risk assessment, incorporate changes in current practices, define/ change
policies, establish documented Asset Management System or incorporate changes to
Integrated Management System)
2 to 3 Weeks
4 Implementation and Review
(To implement changes in the current policies and practices, internal auditor training,
carrying out one round of internal audit & management review and implementing
improvement actions)
8 to 10 Weeks
5 Certification
(To understand the current practices, Map all types of Assets in the organization)
2 to 4 Weeks
Total Duration 16 to 24 Weeks

12. An Initiative Designed by : Confluence Center for Sustainable Development and Business Excellence
For Any Further Information
Please Contact
Venkatesh Yerramalla – 98480 43413/ 90008 00226 (or) yerramalla@confluenceworld.com
Nilesh Naik – 9000015482 (or) nilesh@confluenceworld.com