The document discusses the ISO 55000 standard for asset management, which includes guidelines on terminology, requirements, and guidance. It emphasizes the importance of effective asset management in realizing value and mitigating risk through structured policies and strategies. Additionally, the document outlines the roles of leadership and organizational alignment in achieving asset management objectives.

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Leveraging the ISO Standard to Manage Risk and Realize Value of Your
Organization’s Assets
Randy Heisler LCE
ISO 55000

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Why Standards?
Without them bad things can happen!

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The Need for Standards
Stability
Level differences in how business around the world is
grown and managed
Increased concern over risk awareness
Industrial disasters, financial instability, civil unrest and
economic duress of certain nations
Balancing force for international trade

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How we got here
Feb 2014
CD1
For Comment
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Stage Working Drafts Cttee Drafts DIS
Comments
Resolution
FDIS
April 2013Jun 2012Feb 2012Oct 2011Mar 2011
May 2011
Distribute
WD2
Sep 2011
WD2
Comments
RCVD
CD2
For Ballot
DIS
Released
13 January
2014

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ISO 55000 Primary Documents
A set of three standards issued by the International
Organization for Standardization
 ISO 55000 – Terms and Definitions
 ISO 55001 – Requirements
 ISO 55002 – Guidance
Will be harmonized at a high level with other managing
systems like
 ISO 9001 (quality)
 ISO 14001 (environmental)
 ISO 50000 (energy sustainability)

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Important ISO 55000 Themes
Value
recognition
Risk-based
Optimization
of cost, risk
&
performance
Aligned
objectives
Transparent
decision
making
Recognize
impact of
long life
cycle issues

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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 Management – actions that enable the
realization of value from assets

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ASSET MANAGEMENT

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Fundamentals of Asset Management
• Assets exist to provide value to the organization and its
stakeholders
Value
• Asset management translates the organizational objectives into
technical and financial decisions and plans
Alignment
• Leadership and workplace culture are determinants of realization of
value
Leadership
• Asset management gives assurance that assets will fulfill their
required purpose.
Assurance

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Asset Management Expanded View
Corporate/
Organization
Management
Asset
Management
System
Management Asset Portfolio
Management Asset Systems
Manage Individual Assets
Organizational Strategic Goals
Capital investment value,
Performance and sustainability
Systems performance,
cost & risk optimization
Asset life cycle
costs, risks &
performance Create/
Acquire Utilize Maintain
Renew/
Dispose

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Asset Management System
Section 4.4
The organization shall establish, implement, maintain
and continually improve an asset management
system including the processes needed and their
interactions.
The organization shall develop an asset management
strategy which includes documentation of the role of
the asset management system in supporting
achievement of the asset management objectives.

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Asset
portfolio
Managing the
organization
Asset
management
Asset
management
system
Coordinated activity to realize value
from assets
Set of interrelated or interacting
elements to establish
asset management policy,
objectives and processes to
achieve objectives
Assets within the scope of
the asset management system
Benefit: Provides risk control and gives assurance to meet objectives
Relationship of asset management to the
asset management system

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Key documents for asset management
system
1
2
3
4
Asset management policy
Asset management strategy
Asset management objectives
Asset management plan
 Dependent upon organizational objectives and organizational plan

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Asset Management System
A Strategic Decision
An asset management system
provides a structured approach
for the development,
coordination and control of
asset-related activities across
their life cycle

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Role of leadership
• Demonstrate leadership and
commitment
• Establish an asset management policy
and strategy
• Define organizational roles and
responsibilities

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Elements of an Asset Management System
A Common Model
1. Context of the organization
2. Leadership
3. Planning
4. Support
5. Operation
6. Performance Evaluation
7. ImprovementPolicy
Strategy
Objectives

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Context of the Organization
Considerations
External and internal context
Stakeholder needs and expectations
(external and internal)
Scope of the asset management system

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Leadership Considerations
Leadership and commitment
Roles and responsibilities
Change management competency

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Asset Management Objectives
Essential link between the organizational
objectives and the asset management plans
Established at relevant functional levels

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CREATING THE POLICY

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Requirements for AM Policy
1 Consistency
2 Appropriateness
3 Compliance
4 Principles and framework
5 Continual improvement

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Policy Overview
Policy documents can contain:
1. Purpose statement
2. Applicability and scope
3. Effective date
4. Responsibilities
5. Policy statements

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CREATING THE STRATEGY

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Establish an Asset Management Strategy
• A strategy describes how to realize the policy
• A roadmap for how to get from here to there
• An approach for implementation

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Roadmap
Implementation Approach
• Defines what the organization intends
to achieve from its asset management
activities and by when
• Documents relationship between
organizational objectives and asset
management objectives
• Defines framework to achieve the
asset management objectives
Asset Management Strategy

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Requirements of an AM Strategy
1
2
3
4
Consistency
Risk-based approach
Lifecycle approach
Framework
5 Stakeholders
6 Functional performance
7 Continual improvement
8 Change management

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ASSET MANAGEMENT OBJECTIVES

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Asset Management Objectives
Essential link between the organizational
objectives and the asset management plans

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Asset Management Objectives
Criteria for objectives
• Transform outcomes into activities
• Tailored to organization’s needs
• Specific, Measurable, Attainable,
Realistic, Time-related
• Aligned with organizational
objectives

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Example Objectives
1.Improve availability to benchmark standards
2.Reduce hazardous chemical byproducts by 30% over 3 years
3.Assure U.S. defined environmental standards achieved in
developing markets
4.Extend asset useful life through reuse of equipment
5.New capital investment will focus on total cost of ownership
across asset life cycle
6.Improve organizational problem solving capabilities as a
key success factor for continuous improvement

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Why do this? What are the benefits?
Improved financial performance
Informed asset investment decisions
Managed risk
Improved services and reliability
Demonstrated social responsibility
Demonstrated compliance
Enhanced reputation
Improved organizational sustainability
Improved efficiency and effectiveness

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Questions?
Randy Heisler
Life Cycle Engineering
rheisler@LCE.com
www.LCE.com