Bridging the Gap: Connecting Asset Management

Disciplines in a World of Standards, Best Practices, and

Measuring Outcomes

Robert Kaehler, CPPSBay Area Chapter

CROSSING THE CHASM- DR. GEOFFREY MOORE

Marketing and Selling High-Tech Products to Mainstream Customers

Standards

• Technical Standards

• Management Systems Standards

A WORD ABOUT BEST PRACTICES

They’re for “the other guy”

Technical Standards

• Technical standard, an established norm or requirement about technical systems

• International standard, standards suitable for worldwide use

• Open standard, a standard that is publicly available• Standard operating procedure, a step-by-step

instruction to achieve a desired result• Standard (metrology), an object that bears a defined

relationship to a unit of measure used for calibration of measuring devices

• De facto standard, product or system with market dominance

ISO 55000 – A Management System Standard

• A management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives.

• In simple terms "Plan, Do, Check, Act".

PAS 55

Four Key Elements to a Management System

Organization Context and Leadership

Planning and Implementation

Information Accuracy and Availability

Consistency and Continuous Improvement

An example from Australia

GFMAM 39 Subjects

Why is this standard important?

• Moves asset management from a performance focus to a value focus

• Requires a systems level view of assets across their lifecycle

• Recognizes strong external economic and social drivers for asset management

• Recognizes new safety, security, energy and environmental concerns

* Adapted from Thomas W. Smith, University of Wisconsin

THE FOUR PILLARS OF ASSET MANAGEMENT SUCCESS

Adapted from the Asset Leadership Network’s EO Working Group

Value

Alignment

Leadership

Assurance

Pillar 1 - ValueValue - Assets exist to provide value to the organization and its stakeholders throughout their life cycle. Organizations shall accomplish this by: • Expanding awareness and understanding of asset management

by recognition and use of voluntary consensus standards. • Improving internal controls, effective and efficient operations,

reliable reporting and compliance to laws and regulations • Addressing public safety and concerns• Eliminating unnecessary expenditures• Improving asset accountability and visibility• Adopting and establishing asset management systems and

practices in organizations that lack them.• Continuously improving asset management best practices

according to the organization

Pillar 2 - Alignment

• Expeditiously align and right size the regulatory process to enable entities to establish an asset management system that enables the optimum value from its assets to support its mission

• Asset management translates the organizational objectives into technical and financial decisions, plans and activities

Pillar 3 - LeadershipLeadership – Leadership and workplace culture are determinants of realization of value. Organization Executive Management shall provide the leadership and demonstrate integrity in their decision making processes by establishing a culture that maximizes the value of asset management by:• Clearly defining roles and responsibilities• Requiring accountability and stewardship of assets across their

organization• Ensuring that employees are aware, competent and empowered• Consulting with stakeholders• Establishing performance standards to assure asset management

supports achievement of organizational objectives.• Establish a senior asset management officer, organizational

structure and provide adequate resources to execute the asset management plan.

Pillar 4 - AssuranceAsset management provides assurance that assets will fulfill their required purpose. This includes developing and implementing lifecycle processes that connect their required purposes and performance of the assets to the mission objectives. • Implementing the process for monitoring and continual improvement• Providing the necessary resources and competent personnel for

demonstration of assurance by undertaking asset management activities and operating the AM system

• Improved internal controls• Demonstrated adherence to your AM plan• Accountability and visibility of assets• Identification and correction of process deficiencies• Organizations shall develop AM plans with annual performance

metrics demonstrating value realization from previous budget appropriations as part of the budget process

WHAT DOES THIS HAVE TO DO WITH PROPERTY MANAGEMENT?

Look Familiar?

FAR 52.245-1(b)(1) (Contractor Plans and

Systems)

FAR 52.245-1(f)(1)ASTM E53

Property Systems and Contract Compliance

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52.245-1(b)(1)

… the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective control of Government property … (and) may employ customary commercial practices, voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate …

November 15, 2012

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FAR “10 Subjects”

• Acquisition• Receipt• Records• Physical Inventory• Subcontractor

Control

• Reports• Relief of

Stewardship• Utilization• Maintenance• Property Closeout

November 15, 2012

As defined in FAR 52.245-1(f)(1)

FAR 52.245-1 (b) (4)

The contractor shall establish and maintain procedures necessary to assess its property management system effectiveness and shall perform periodic internal reviews, surveillances, self assessments, or audits.

Ready for ISO 55000

FAR 52.245-1(b)(1) (Contractor Plans and

Systems)

FAR 52.245-1(f)(1)ASTM E53

The Organization

Leadership

Plans

SupportOperation

Performance Evaluation

Improvement

ISO 55001

Structure

Value

Alignment

Leadership

Assurance

Deliver the Four Pillars

Up on Main Street (or maybe you’re Ashton Kutcher?)

FINAL THOUGHTS AND QUESTIONS

Thank you for attending!I hope you had a very valuable NES this year!

CONTACT INFORMATION

Robert Kaehlerrobert.kaehler@ascotssociates.com800-930-0901 x201