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?
Bluffers Guide to ISO55000

What Next?
Defining the discipline
Defining the profession
Support The Journey
Discussion

Asset Management in 2013

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

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:
Inclusive
Whole Life
Optimized

Risk-based
Data-supported
Continuous improvement
Pragmatic

BSI best seller global default standard

still needs improvement
(eg infrastructure -v- the rest)
The IAM Toolkit:
PAS55;
Competences Framework; and
PAS55 Assessment Methodology.

Revising PAS55
49 organisations from 15 industries in 10 countries
Organisations sponsoring PAS 55 Review
Industry Sectors

Organisations sponsoring PAS 55 Review

Geographical footprint
Scandinavia

Electricity/gas
distribution

Australia
Far East
North America

Power generation
Manufacturing

UK

Water

Engineering/
consultancy

Multinational

Transport
Mining

Benelux

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

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

Credibility of BSI
Recognised Standard
Regulators like it
Independent
certification
Easy to communicate
success
Aligned with other
standards ISO9000

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?

Bluffers 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
Melbourne
Mar 2011

Month

Washington Pretoria

Prague

Calgary

Feb 2012

Jun 2012

April 2013

Oct 2011

Feb 2014

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

Jun 2011

Sep 2011

Distribute WD2
WD2
Comments
RCVD

CD1
For Comment

Cttee Drafts

CD2
For Ballot

DIS

DIS

Comments
Resolution

FDIS

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 organisations 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

Bluffers 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 wont 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, its 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?
Bluffers 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?
Bluffers Guide to ISO55000

What Next?
Defining the discipline
Defining the profession
Support The Journey

Discussion

Objections
Dont you know theres a (war) crisis on?
I cant afford to spend on luxuries like Asset Management!
How long do I have to wait for this fad to go away?
Its great but it doesnt apply to me!
But Ive 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, its 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

CEO@theIAM.org

www.theIAM.org