Workshop E Extending the benefits life cycle: ISO 55000 by John Heathcote Benefits Summit 2015 Thursday 25th June London

1. Extending the Benefits Lifecycle:
ISO 55000 & Asset Management
Benefits Summit 25th June 2015
JOHN HEATHCOTE June 2015

2. ISO 55000 a focus on benefit
delivery
APM Benefits Summit, June 2015
London

3. ISO 55000. Quality Assurance
• Add photo 1

4. ISO 55000

5. ISO 55000 description
>ISO 55001 is the requirements specification for an integrated,
effective management system for asset management.
Note: 55001 defines requirements for a management system, in the
same way as ISO 9001 specifies a quality management system, and ISO
14001 covers an environmental management system. ISO 55001 is not,
therefore, a specification for an asset information management system
(sometimes called "enterprise asset management" system). Such
software systems are, however, recognised to be useful aids ('enablers')
for good asset management.

6. ISO 55000 Defines asset management as..
..the "coordinated activity of an organization to realize value from assets"
In turn, Assets are defined as follows: "An asset is an item, thing or entity that has potential
or actual value to an organization".
This is deliberately wider than physical assets but these form an important focus for more
organizations.
(NB there are important qualifying Notes to these definitions, which are set out in ISO 55000).

7. ISO 55000, notes: facilitating better benefit cases
• Asset Management involves the balancing of costs, opportunities and risks against the
desired performance of assets, to achieve the organizational objectives. This balancing
might need to be considered over different timeframes.
• Asset management also enables an organization to examine the need for, and
performance of, assets and asset systems at different levels. Additionally, it enables the
application of analytical approaches towards managing an asset over the different stages
of its life cycle (which can start with the conception of the need for the asset, through to
its disposal, and includes the managing of any potential post disposal liabilities).
• Asset Management is the art and science of making the right decisions and optimising
the delivery of value. A common objective is to minimise the whole life cost of assets but
there may be other critical factors such as risk or business continuity to be considered
objectively in this decision making.

8. A power station, maintenance dept.

9. Power’s Programme example
Projects Objectives Benefits
Spare Generator transformer Increased availability & risk capacity Profit, Capacity to
sell to peaks!
Maintenance Shut Down Assurance, Certification, Reliability, Risk
Mitigation
Regulation, Efficiency
Sulphate Injection Burn more products without pollution/emission Profit/ Regulation
Biomass fuel project CO2 legislation, More fuel PR/Regulation
Variable speed drives Upgrade plant, better efficiency Profit, Capacity to
meet peaks.
Dynamic Classifier Fire efficiency, Pet coke & Bio fuel
Maintenance & Ops restructuring Work patterns flexibility Safety, Efficiency.
Boosted over air fire Emission compliance Cheaper products
Pet-Coke Substitute Cheaper fuel Profit

10. A business/value case,
• Defining value.
• In Strategic terms

11. A value management process outline
• Information: avoid the availability error
• Problem definition: Root cause analysis
• Option generation: suspension of judgement, avoiding first good
(tried & tested fallbacks) error.
• Review with risks,
• Recommend: Value function Benefit/£ resource (& risks to those
estimates/assumptions)

12. A progressive cavity pump example
0
20
40
60
80
100
120
140
160
180
J F M A M J J A S O N D
Pump type 1
Pump type 2
Current

13. A Business/Value case: Progressive Cavity Pumps

14. 0
1
2
3
4
5
6
7
8
9
10
Capex Cost of
the SAME duty
Pump
Supplier 1
Supplier 2
PC Pumps Whole Life Cost Comparison.
• Make the best capital
purchase decision.
• Take the Capital Saving!
• But……..

15. PC Pumps WLC Comparison
0
1
2
3
4
5
6
7
8
9
10
Capex Spares
List
Supplier 1
Supplier 2
• Comparison becomes more difficult when
we consider the spares list.
• But neither cost refers to the VALUE of
the Investment!!!!!!

16. The Whole Value Chain
• Adding value means……..
Taking a whole chain viewpoint.
CAPEX
10%
Energy
30%
Maintenance
60%
WLCosts

17. PC Pumps
Whole Life Cost Comparison.
0
10
20
30
40
50
60
COSTS
Capex
Maint'nce
Energy
0
10
20
30
40
50
60
70
80
COSTS
Capex
Maint'nce
Energy
Pump No. 1 Pump No. 2
It’s Easier to compare
plant performance,
than to find the
existing OPEX from
the BU !

18. Pump Comparison ROI/Payback
0
20
40
60
80
100
120
140
160
180
J F M A M J J A S O N D
Pump type 1
Pump type 2
Current

19. A programme of benefits

20. A programme of benefits.

21. It’s all in the business [benefit, value]case:
Some examples
• Some examples, from the table or the floor.....
• The importance of benefits in all this,
• The importance of the programme ‘view’