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Asset Management and the new ISO Standards

Reprinted by courtesy of ‘Energy Source and Distribution’ magazine

Successful asset management encompasses the entire organisation: not just engineering, not just IT and not just finance.

In fact, asset management is not even just about the assets themselves, but is also about the more fundamental objectives of the organisation that owns those assets. It is about using assets to achieve organisational objectives, seeking an optimal outcome for the organisation in terms of costs, performance, risk and even sustainability.

In 2004, British Standard Institute issued PAS 55 with its 28 requirements to represent good industry practice, reissued in 2008 and still in use today. Many organisations globally have used that specification with success, either informally as a guide or they sought and achieved certification as a way to ensure their asset
management processes were at least in line with industry perception of good asset management practices.

The ISO 55000 standard (or more precisely, the ISO 55000x series of standards) was issued in January 2014 and comprises 39 subjects that together form the agreed body of knowledge for asset management as a whole. It's a great step forward. The new standard was quickly on the ISO best seller list reflecting the industries interest.

Neither the new ISO standard or the BSi PAS 55 specification tell the asset owner exactly what to do to become a good asset manager. However, these documents
do provide guidance on what systems, policies, processes, documents and other requirements are considered to be parts of a good asset management system.

The objective for all organisations that manage assets should be to continually strive to improve staff knowledge, processes and systems to achieve the organisations end goals and strategic objectives. Both the PAS and the new ISO standard will provide valuable guidance in this regard.

There is still some resistance to the take up of PAS 55 and the new ISO standard.

Some of this resistance appears to be a fear of embarrassment for those responsible for asset management in the organisation or a lack of willingness to expend valuable internal resources. Unlike the UK, the regulators have so far not mandated that asset management systems for T&D utilities must be certified.

Both PAS 55 and the ISO 55000 series are extremely useful to develop to assist management in exposing management risks that need to be addressed and to develop a strategic roadmap aimed at improving asset management.

The new ISO standard for asset management will be broadly adopted. I will be looking with interest as the body of knowledge in asset management matures even further as more organisations come to see the substantial benefits of good asset management.

Contact Lord Consulting for more information.


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