Asset Management Maturity

Document ID: 6500_143v02Released: October 2010

Partnering Organisations

© Asset Management Council Slide 1

An introduction to the AM Council’s maturity assessment tool

Asset Management Maturity




Agenda

• Background and objectives

• A definition of asset management maturity

• An overview of the AMBOK asset management maturity model

• Why apply this model?

• Summary & Next steps




Background and objectives

• Background– With the publication of ISO 5500x series of standards, there has been a

growing level of interest in understanding organisational performance and maturity in asset management

– Maturity models exist in other domains but few deal with asset management maturity and ISO 5500x

– Global Forum for Maintenance and Asset Management (GFMAM) developed a policy on maturity but left details to individual societies





• MESA and AM Council have run Asset Management Maturity Improvement Program and AM Awards for 20 years in various forms

1996

MESA implemented a maturity assessment

for maintenance management - the

Australian Maintenance

Excellence Award

2005

The AM Council developed an asset management maturity assessment - the Asset Management Award

2015 2016

AM Council further refined The Asset Management Maturity Improvement Program with the introduction of the Asset Management Maturity Model and on-line Assessment tool

The AM Council sought members input on the importance and content of the next evolution in our maturity assessment tool• A tool was required• It is more than just process

maturity• Help us with ISO 5500x

Over 100 organisations representing:• organisations from South Africa, New Zealand, China

and Australia• rail, defence, oil and gas, process and manufacturing,

Local government and State government…have been involved in the programme over this period.

2012

Gladstone Power Station go on to win the National Engineering Excellence Award

2017





• The objectives of this presentation are to

– Give you an understanding of what maturity is

– Give you an understanding of how the AM Council AMMM and assessment tool works

– Let you know about some of benefits and lessons learned from the AM Councils application of the AMMM




Source Definitionthe ability of an organisation to [demonstrably] foresee and respond to its environment through the management of its assets, while continuing to meet the (changing) needs of its stakeholders and the external environment

the extent to which the capabilities, performance and ongoing assurance of an organisation are fit for purpose to meet the current and future needs of its stakeholders, including the ability of an organisation to foresee and respond to its operating context

A definition of AM maturity

A framework to objectively,

transparently and repeat-ably assess the

asset management function of and across

an organisation

AM Council Asset Management Maturity

Assessment Model

• Current definitions of maturity focus on describing the attributes of one ‘level’ of maturity

• The AM Council defined maturity as a framework to assess organisations asset management capability




A definition of AM maturity

• AMMM built on the established attributes of a mature organisation– generally as the interaction of a high concern for change with a high

concern for stability; – high/ high represents the behaviour of a mature system, searching for

stability through change*; it is the ability of an organisation to achieve its outcomes through its management system not in spite of it.

Concern for stability (measured by use of andcompliance with the management system)

Low High

Concern for change (measured by the achievement of the organizational and asset management objectives)*

High Radical Mature

Low Anarchy Conservative

* Gharajedaghi, J., Systems Thinking: Managing Chaos and Complexity: A Platform for Designing Business Architecture, Elsevier Science. Kindle Edition., 2011 and Wheately, M., Leadership and the New Science Discovering Order in a Chaotic World 2006, James Q. Wilson, Bureaucracy: What Government Agencies Do and Why They Do It, New York, Basic Books, 1989




An overview of the AM Council AMMM

• The AM Council Asset Management Maturity Model

– Builds on established principles from a range of domains including • Safety management• Risk management• Asset management

– Combines key elements of ISO 55000, ISO 55001 and AM Council existing models

– Uses 115 questions

…to provide a comprehensive view of AM maturity, ISO 55001 performance and AMSM performance for asset managers, top management and investors/regulators.

Notes:1. Hudson, P.,. Flight Safety Australia. Safety Culture: The ultimate goal. 2001, pp. 29-312. Adapted from IEC 62853: Open Systems Dependability




An overview of the AM Council AMMM

Provide insights into performance in • areas of Asset Management Systems

Model plus • ISO 55001

Understand performance in terms of four ISO fundamentals plus Agility2

Performance described in terms of five levels from Hudson Model1

Notes:1. Hudson, P.,. Flight Safety Australia. Safety Culture: The ultimate goal. 2001, pp. 29-312. Adapted from IEC 62853: Open Systems Dependability

1. People don’t really care about managing their assets2. Managing assets is taken seriously, but only after things have gone wrong.3. Focus on systems and numbers.4. Moving away from managing assets based on what has happened in the past to preventing what might go wrong in the future.

5. Organisations set very high standards and attempt to exceed them. They use failure to improve, not to blame

• Value• Leadership and culture• Assurance• Alignment• Agility




How the AMMM can be used

• AMMM can be used in four different ways– Self assessment (Light)

• On line questions and answers – come back to it when you can• Designed to minimise bias and maximise interrater reliability• Provides performance in four different dimensions

– Self assessment + comparison to others (Benchmarking)• Builds on Self assessment• Uses ANZSIC codes to provide views across and within industries and separately in the

different dimensions

– Externally supported assessment plus facilitated discussion (Full)• Builds on Benchmarking and provides AM Council Assessor support

– Awards• Continues the tradition of AM Council at a National level

• …all of which are enabled by our on line tool as shown in detail on the following pages




Present pilot

Question

Present Question

How the on-line tool works

Asset Manager

Write Answer Present

Qualities for that Question

in no particular order

Select ‘best fit’ Quality

Create a score

Create overall score by lens and

principle

More questions

Yes

No

Present reports

Store results

Internet

On line tool step

Asset Manager step

Write Answer

Present Qualities for

that Question in

no particular order

Create a

score

Suggest contacting AM Council

No

No

More questions

Yes

Yes Total score <50%





What the on-line tool looks like

Live demonstration




Why apply this model

• There are a number of reasons why an organisation should undertake an AM Maturity Assessment

• The level of assurance they can take from the AM system

• Culture and leadership issues• Behaviours of the organisation and

the people within it• How does this organisation perform

in key areas ISO 5500x

If you are an Asset Manager you are interested in If you are Top management you

are interested in• Performance in processes management, competency, of the team and risks

• Cultural issues• Whether AM function will

achieve objectives• How does this organisation

perform in key areas of ISO 5500x

• AM Maturity is coming to regulated environments

• Many regulators and Treasuries looking at maturity measurement

• CEO attestations identified as a requirement in some cases

• For self improvement• Use the information on AM function &

management system to define the issues and guide improvement projects

• Develop leadership and culture capability

If you are an investor/regulator…





Performance of the management systemMaturity of the AM function and organisation

Performance against the areas of ISO 5500x





• AM Council has been doing maturity assessments for over 20 years as part of the AM Council Awards program

• In 2012 the winner of the AM Council Awards went onto achieve national recognition at the National Engineering Excellence Awards

Gladstone Power Station




Summary & next steps

• Summary– Maturity models appear in a range of domains but few deal consistently

with the full domain of asset management, maturity and ISO 5500x– AM Council Maturity Model:

• Consistent with ISO 5500x

• Consistent with established theories and approaches on measuring maturity – whether an organisation achieves its objectives through the application of its management system

• Provides a rich picture of the performance of the organisation across a range of areas– The AM Council Asset Management Systems Model– ISO 55001 chapters– ISO 55000 fundamentals

– Regardless of whether you are an asset manager, ‘top management’ or an investor, the Asset Management Maturity Model is your key to unlocking value in assetmanagement




Next steps & questions

• Next steps– Check out the AM

Council website

– Apply the light tool yourself

– Book your full assessment in

• Questions?




AM Concepts & Models




Other maturity assessment tools

• Other maturity assessment tools include:– ISO 15504: IT – Process Assessment– Baldrige Awards– EFQM – Japan Quality Award Council– CMMI and People Maturity Capability Model (P-CMM)– Safety Maturity approaches– Infrastructure Australia




AMBoK




Asset Management Concept Model

• Conceptually presents the basis of successful asset management.

• Documents the basis of asset management

• 4 key principles




Present pilot

Question

Present Question

Solution architecture‘Benchmarking’ Use case

Asset Manager

Write Answer Present

Qualities for that Question

in no particular order


Create a score

More questions

Yes

No

Internet

On line tool step

Asset Manager step

Write Answer


that Question in

no particular order

Create a

score

Suggest contacting AM Council

No

No

More questions

Yes

Yes

Total score <50%


Create overall score by lens and principle

Present reports

Store results

Pay fee and accept NDA terms

Present Benchmarking Reports




Present Question

Solution architecture‘Full’ Use case

Asset Manager


that Question in no particular

order

Select ‘best fit’ Quality Create a score

Create overall score by lens and principle

More questions

Yes

No

Present reports

Store results

Internet

Pay fee and accept NDA terms

Present Benchmarking Reports

AM Council Assessor

Top management

Check Act Plan Do




Respondent attributes

Attributes of respondent/response

Value Valid values

Date Dd/mmm/yyyy

Organisation ABN/ACN

ANZSIC

Assessment type Self/Independent

Assessor qualifications None/CAAM/CPAM/CSAM/CFAM

Assessor name Text

Assessor org level

Assessor role name

Asset portfolio

Country

City

Organisation ABN site Text




Solution Architecture

Lens 1 2 3 4 5Stakeholders & context

Quality 1 Quality 2 Quality 3…

Leadership & culture

Organisationalobjectives

AM objectives

Decision making

Risk management

Organisational roles

Process management

Competency & engagement

Performancemonitoring and improvement

Quality n

Qualities • define in qualitative and/or

quantitative terms the attributes of a given lens for that level. The qualitative descriptions include attributes of each principle/fundamental for that lens in that level.

• Are assessed by one or more Questions




Asset Management Maturity Improvement Program Management

CAP-Do

1. 2000, Improving performance through statistical thinking, American Society for Quality




Asset Management System Model

• Illustrates the key components of an asset management system and how they inter-relate.

• Depicts the typical components of an organisation’s management system and how they integrate

• Interrelated elements of an organisation

• Defines the system for the management of ‘assets’

• Illustrates the linkages between elements




Capability Delivery Model

Schematically presents processes, within a number of disciplines, that may be used in part or entirety, to deliver successful asset management

Asset Management Maturity

Documents

Transcript of Asset Management Maturity