Peter Kohler - AM Council - ISO 55000 Asset Management: a whole of business approach to asset...

Document ID: 6500_143v02

Released: October 2010

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Organisations © Asset Management Council Slide 1

ISO 55000 - A WHOLE BUSINESS APPROACH FOR THE MANAGEMENT OF ASSETS

Peter Kohler

Commissioner, AMBoK for AM Council

Member of ISO PC 251 Asset Management (ISO 5500X series)



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• About the AM Council?

• What is Asset Management?

• What are the ISO standards?

• What are the business advantages provided by the ISO Standards?

Agenda



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ABOUT THE ASSET MANAGEMENT COUNCIL



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Vision

Enabling benefits for

all from effective use

of assets



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Asset Management Council

• Established 1984 • Technical Society of Engineers Australia • Member based, Industry Funded, not-for-

profit professional association • Our mission is to:

– create broad awareness of the value of asset management

– nurture common understanding of asset management, and

– provide a portal to asset management knowledge and resources



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AM Council Offerings

• Courses:

– Asset Management Fundamentals

– Executive Overview

– Risk and Reliability Intensive

– Asset Management Planning Intensive

• Asset Management Reviews:

– Rail

– Power

– Defence



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WHY ASSET MANAGEMENT?

The life cycle management of physical assets to

achieve the stated outputs of the enterprise.



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Asset

Management

Planning

Dispose Plan,

Specify

Investment Options with certain Risk

Profiles

Concept Stakeholders Services/Outputs

that leads to

an

where the best option leads to

Services/Outputs

Acquire Operate, Maintain

and Evolve

Asset Management in

Business Planning

Business Planning



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The Role and Value of Asset

Management

What does asset management do?

• Achieves organisational objectives

Why does it do that?

• Deliver value to Stakeholders

How does it do that?

• Provides a demonstrable balance between the

cost, the residual risk and the asset performance to

be achieved



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The Role and Value of Asset

Management

The role of asset management is to align processes,

decision-making and outcomes (of assets) with the

achievement of the objectives of the organisation

The value provided by asset management impacts on

the Level of Service delivered to customers, Share

Price, Balance Sheet, Profit & Loss account, Risk

profile and Reputation of the business

“Effective control and governance of assets ... to

...achieve the desired balance of cost, risk and

performance.“ ISO 55000



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WHAT ARE THE ISO 55000 STANDARDS?



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• 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

The ISO 5500X Suite



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ISO 55001 Requirements

13

Asset Management System (Sections):

o Context

o Leadership

o Planning

o Support

o Operation

o Performance Evaluation

o Improvement

Supported by 71 “Shall” statements



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WHAT ADVANTAGES DO THE ISO STANDARDS OFFER?



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• The ISO suite will likely become the basis on which industry regulators assess the minimum asset management capability of public industries

• For non-regulated industries, the ISO will serve as a benchmark for appropriate stewardship of an organisation’s assets. As a result, organisations may see certification offering a commercial advantage to investors

• Insurers may also assess the adequacy of an organisation’s asset management using the ISO when determining premiums

ISO Advantages Business



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What does ISO NOT do?

In order to implement the requirements of the ISO suite, the organisation itself must choose appropriate:

• Technical, financial, enterprise and agreement processes;

• Organisational roles, structures and competencies;

• Technical, financial and operating frameworks; and

• Risk based decision making frameworks.



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IN CONCLUSION



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Asset

Management

Planning

Dispose Plan,

Specify

Investment Options with certain Risk

Profiles

Concept Stakeholders Services/Outputs

that leads to

an

where the best option leads to

Services/Outputs

Acquire Operate, Maintain

and Evolve

Asset Management and Business Balance of Cost, Risk and Performance

Business Planning



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THANK YOU

Peter Kohler - AM Council - ISO 55000 Asset Management: a whole of business approach to asset...

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