Keynote ISO 55000 the IAM Perspective

ISO55000

– the IAM Perspective

David McKeown Chief Executive

8 May 2013 – CNAM Conference Edmonton

Agenda

Assets, their management and concepts

So why did the IAM initiate ISO55000?

Where are we right now?

What will be different in an ISO55000 world?

Some comments!

What is the IAM doing to support Individual and

Corporate Members – and the public generally?

What about your assets?

When you maintain your home, what are your criteria?

Performance?

Level of Service?

Spend the money on a holiday instead!

Do you do it out of OPEX or CAPEX – with a loan?

How do you value it / cost it?

Historic / Fair Value?

Or outcomes more than valuation?

What about You?

What is your useful life?

What is your remaining life?

Do you have a strategy or even an asset management

plan?

Who for? Top management?

Done a report card lately?

What is your value!!!!!!

(The real) Agenda

What have we learned over the last decade?

Bluffer’s Guide to ISO55000

What Next?

Defining the discipline

Defining the profession

Support ‘The Journey’

Discussion

The understanding of Asset Management has developed significantly over the last decade

A number of approaches, standards and models have been developed across the world – e.g. BSI PAS 55

ISO 55001 will define the requirements for a good practice AM Management System

It will deliberately contain nothing on ‘how well’ a business needs to develop its Asset Management capabilities

It does not in itself guarantee you will ‘do’ asset management

There is a growing demand for Asset Management knowledge, guidance and qualifications to support ISO 55000

These need to be developed in a global context

Asset Management in 2013

BSI PAS 55:2008

BSI PAS 55:2003 effective April 2004:

Part 1 – The Specification Part 2 – Guidelines

PAS 55 : 2008 effective September 2008

Key principles:

BSI ‘best seller’ – global default ‘standard – still needs improvement (eg ‘infrastructure’ -v- the rest)

The IAM Toolkit:

PAS55;

Competences Framework; and

PAS55 Assessment Methodology.

Inclusive Whole Life Optimized

Risk-based Data-supported Continuous improvement Pragmatic

Revising PAS55

49 organisations from 15 industries in 10 countries Organisations sponsoring PAS 55 Review

Industry Sectors

Power generation

Electricity/gas

distribution

Engineering/

consultancy

Mining

Transport

Water

Manufacturing

Organisations sponsoring PAS 55 Review

Geographical footprint

Benelux

Multinational

North America

Far East

Australia

Scandinavia

UK

Benefits of adopting PAS55

Credibility for all stakeholders – audit trail for decision making

Raises board room visibility

Transferable and not prescriptive - common language

Encourages improved communication in business

Independent of business model

Risk based decision making encourages a cost effective

approach

Provision of a framework that is sustainable

Enables gap analysis to develop best practice – benchmarking

opportunities

Transparency of decision making (keeps you out of court?)

Puts AM on the map

Holistic

Certification to PAS55

Pros Credibility of BSI

Recognised Standard

Regulators like it

Independent

certification

Easy to communicate

success

Aligned with other

standards – ISO9000

Cons Perceived as a lot of

additional work

External Costs

Go / No Go – no

incentive to out-perform

Just a ‘badge’

Fear of embarrassment

/ regulator reaction

So – what next?

Choices for the IAM, in 2008:

PAS55 / BS / EN / ISO ???

Risks of ‘lowest common denominator’

Time and lack of control

IAM wants to move on to ‘how to’ and capability

Aim to promote convergence of thinking / theory

and collaboration worldwide

Repeat after me…

Asset Management is

NOT about

the Management of Assets

Business Drivers

What asset costs can be reduced, deferred or eliminated?

How can we spend less on assets and achieve our targets?

How can we get better returns on capital employed?

How can we avoid the risk of assets being unavailable when

we need them?

How can we demonstrate levels of asset related risk are

known and appropriate?

How can we improve the deployment and maintenance of

assets?

(The real) Agenda

What have we learned over the last decade?

Bluffer’s Guide to ISO55000

What Next?

Defining the discipline

Defining the profession

Support ‘The Journey’

Discussion

What is ISO/PC251?

Tasked with developing 3 International Standards

ISO 55000 Asset management – Overview, principles and

terminology

ISO 55001 Asset management – Management systems -

Requirements

ISO 55002 Asset management – Management systems -

Guidelines on the application of ISO 55001

ISO PC251 Preliminary Meeting

London June 2010

A Brief History

Background

UK submitted NWIP in July 2009 for an Asset Management ISO

London Meeting resulted in formation of a Project Committee

BSI PAS 55:2008 adopted as the ‘Base Document’

(PAS55 released in 2003 and revised in 2008 – developed by 49

organisations from 15 industries in 10 different countries

ISO/PC251

Melbourne Mar11: Initial Plenary Meeting - 40 representatives from

14 countries

Now 27 participating countries with 10 observers (number of

delegates varies)

Calgary was biggest ever meeting with 80 delegates approx

Participating Members

1. Argentina

2. Australia

3. Canada

4. Czech Republic

5. Denmark

6. Finland

7. France

8. Germany

9. India

10. Ireland

11. Italy

12. Japan

13. Republic of Korea

14. Mexico

15. Netherlands

16. Peru

17. Portugal

18. South Africa

19. Spain

20. Sweden

21. Switzerland

22. United Kingdom

23. United States of America

24. United Arab Emirates

25. China

26. Belgium

Observing Members

1. Armenia

2. Austria

3. Hong Kong

4. Iraq

5. Israel

6. Malaysia

7. Morocco

8. New Zealand

9. Norway

10. Slovakia

11. Thailand

The Programme

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 DISComments

ResolutionFDIS

April 2013 Feb 2014 Jun 2012 Feb 2012 Oct 2011 Mar 2011

Jun 2011

Distribute

WD2

Sep 2011

WD2

Comments

RCVD

CD1

For Comment

CD2

For Ballot

DIS

Melbourne Washington Pretoria Prague Calgary

Current Status

All three documents are agreed by PC251 to be ready for

Final Draft International Standard status

1 month for editing and PC251 approval

2 months international ballot / translation etc

Potentially published in October 2013!

One of the first ISO Standards to be published with the ISO common

High Level Structure (as per Annex SL)

ISO9001 and ISO14001 are currently revising to align them with

ISO55000 and Annex SL

ISO 17021/5 Competence Requirements for Certification and

Auditing – in draft – to be published for comment simultaneously

Diagrams!

Asset Management

coordinated activity of an organization to

realize value from assets

Note 1: Realization of value will normally involve a

balancing of costs, risks, opportunities and performance

benefits.

Note 2: activity also refers to the application of the

elements of the AM system

Note 3: the term activity has a broad meaning and can

include, for example the approach, the planning, the plans

and their implementation

Asset Management System

Management System

set of interrelated or interacting elements of an organisation

to establish policies and objectives and processes to

achieve those objectives

Note 1: A management system can address a single discipline or several

disciplines.

Note 2: The system elements include the organisation’s structure, roles

and responsibilities, planning, operation, etc.

Note 3: The scope of a management system may include the whole of the

organization, specific and identified functions of the organisation, specific

and identified sections of the organisation, or one or more functions

across a group of organisations.

Note 4: The asset management management system also includes the

strategies and plans.

Life & Life Cycle

Life Cycle

the stages involved in the management of an asset Note 1: The naming and number of the stages and the activities under each stage

are usually different by industry sectors and determined by the organization

Asset Life

period from asset creation to asset end-of-life

Understanding Asset Value

PAS55 = Plant, machinery, property,

buildings, vehicles and other items that have

a distinct value to the organization

ISO = something that has potential or

actual value to an organization

So – how do you extract value?

Asset Management Fundamentals

(previously ‘Principles’)

Value - Assets exist to provide value to the

organization and its stakeholders

Alignment - Asset management translates

organizational intent into technical and financial

decisions, plans and activities

Leadership - Leadership and workplace culture

are determinants of realization of value

Assurance - As a process, asset management

assures that assets will fulfil the required purpose

Source – ISO 55000 – May 2013

Bluffer’s Guide

So, how do you convince your boss you were not asleep or partying at

the CNAM Conference?

Learn a few easy but deep phrases and hope he won’t want to look

ignorant by getting you to explain…

Assets, Asset Management and the AM System

The Fundamentals of Asset Management

The AMS is the necessary but not sufficient ingredient

But is it a ‘shall’ statement?

Our focus must be culture, change and leadership

Forget the assets, it’s all about the value, Stupid!

So, will it work?

Does Microsoft Word ‘work’?

Management and Leadership

Culture and Vision and Line-of-Sight

Training – formal and on-the-job

The Asset Management Profession

(The real) Agenda

What have we learned over the last decade?

Bluffer’s Guide to ISO55000

What Next?

Defining the discipline

Defining the profession

Support ‘The Journey’

Discussion

Asset Management Anatomy

Intro

Disambiguation (asset management and Infra / Enterprise / Physical / Strategic etc)

Principles & Philosophy (history, PAS55, ISO uses PAS55) and using the ISO Principles;

The Scope of Asset Management (uses model and similar diagrams – linking strongly with LoS etc;

39 Subjects (as per Warwick doc)

The Boundary

Core

Landscape

IAM Framework

Current Work

Body of Knowledge

Reviewing Endorsed Trainer & Assessor Schemes

Knowledge Centre Project (case studies)

‘Beyond PAS55 Compliance’ work streams

International relationships & Global Forum (GFMAM)

International Accord Project

Asset Management Competence:

Certificate / Diploma

Revised Competences Framework

Events - strategic review (incl ‘badging’)

(The real) Agenda

What have we learned over the last decade?

Bluffer’s Guide to ISO55000

What Next?

Defining the discipline

Defining the profession

Support ‘The Journey’

Discussion

Objections

Don’t you know there’s a (war) crisis on?

I can’t afford to spend on luxuries like Asset Management!

How long do I have to wait for this fad to go away?

It’s great but it doesn’t apply to me!

But I’ve got enough to do already! ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Spending money wisely is not a luxury!

This is NOT going to go away!

Oh yes it does!

This is not more work to do, it’s about the way you handle

the challenges of the real world – and this is a real world,

proven solution.

Did you remember?

The AMS does NOT do Asset Management for you

Culture, Culture, Culture – and leadership

Line of Sight, Strategy above Plans,

Coordinated activity of an organization to realize value

from assets

Something that has potential or actual value to an

organization

Value – not valuation

Asset Management is NOT the Management of Assets

Why do Asset Management?

Business benefit

Real value, performance, risk control etc

Governance & longer-term thinking

People and ‘silos’ / business processes

Stakeholder demand – similar to ISO 14000 etc

Future

Compliance – ISO 55000/1/2

Financial / Annual Reports

‘Just Good Management!’

Further Information

Thank you for listening

Do ask Questions

[email protected]

www.theIAM.org