Asset Management (ISO 55000)

What are the main elements of an asset management system?

There are four main sections within ISO 55001 that describe the major elements of an asset management system. Aside from these four main components, ISO 55001 and ISO 55002 further include other clauses that can be considered as additional parts to support the asset management system. The following list below enumerates these elements:

1. Asset management policy

A company’s asset management policy lays out the foundation on how asset management will be carried out. It demonstrates the commitment of the organization towards a common purpose. As with other company documents, the asset management policy should undergo a review process regularly, with updates being performed as needed.

Typical examples of policies would include provisions to specify decision-making criteria and statements that express long-term goals and objectives. Other examples of provisions that would appear on the policy are applicable laws and legislation, stakeholder requirements, and continuous improvement standards.

The asset management policy is  a relatively short document – one to two pages would be more than enough. This document is short and simple for a reason. They are not intended to contain specific details that you might find on a procedure manual. Instead, the policy statement provides general principles that the company strives to go by in terms of asset management.

2. Asset management objectives

Identifying the objectives of an asset management system is essential in taking the first steps to reach the desired outcome. Setting these goals and milestones within the company, more specifically within asset management, forms the execution plans that will be needed after.

ISO 55002 requires asset management objectives to be  SMART – specific, measurable, achievable, realistic, and time-bound. Keeping in mind this simple, yet effective, mnemonic sets you up towards objectives that actually matter.

Setting objectives within your organization don't always follow the same process. Remember that your asset management system would be comprised of various types of subsystems and other elements. A physical asset, for example, might have specific objectives relating to asset condition, health, and operating costs. The whole asset management system, on the other hand, would consider more general objectives, such as total customer satisfaction, cost of ownership, or environmental costs.

3. Strategic management plan (SAMP)

The strategic asset management plan (SAMP) is also commonly referred to as the asset management strategy. ISO 55000 provides a thorough definition of asset management strategy: “documented information that specifies how organizational objectives are to be converted into asset management objectives, the approach for developing asset management plans, and the role of the asset management system in supporting the achievement of the asset management objectives”.

The SAMP is basically a way to  bridge the asset management objectives with the overall organizational objectives. It paves the way for more detailed planning steps to then achieve asset management objectives.

The development of the organizational plan and the asset management strategy should be a two-way process. For example, results from asset management activities influence how organizational objectives are formed. This is an iterative process, allowing both the plan and the strategy to evolve together.

ISO 55002 points out some important tips in developing the SAMP. Organizations are expected to involve stakeholders. The expectations and needs of the stakeholders must be assessed accordingly. General activities should also be identified and regularly reviewed, especially those activities that are required beyond the planning timeframe. Lastly, processes to objectively establish decision-making criteria should be properly documented.

4. Asset management plan

Think of the asset management plan as a more detailed map to achieving the asset management goals of an organization. This document includes information on the specific activities, resources, and timelines that assets would undergo. This plan aims to work towards achieving the previously set objectives.

Creating an asset management plan starts with identifying who is responsible for developing and implementing the document itself. It is also important to consider the users of the document, ensuring that the written information is communicated clearly.

Asset management plans should be documented in a way that makes sense to the organization. Some might opt to have a single document that is applicable to the whole organization. Others might find it more appropriate to have multiple plans broken down according to their respective departments.

5. Supporting elements

The main elements of an asset management system can be summarized to be policy, objectives, strategy, and plan. However, there are a lot of other implicit tools that are pre-requisites to develop one or more of the major elements. Think of these other supporting elements, such as smaller building blocks, that together comprise a larger component of the system.

The ISO series does a really good job of breaking down large concepts into smaller clauses. The asset management plan, for example, covers a broad range of activities. To ensure that no key concepts are missed, standards that are specific on operation, performance evaluation, and risk assessment are included.

Examples of supporting elements that are part of the management system are:
- Consideration of support required (i.e. resources, competencies, etc.)
- Operational planning and implementation of required activities
- Performance evaluation
- Evaluation of the levels of risk

How do I implement ISO 55000?

ISO 55000 implementation starts with getting the top management on board. Once the leadership team agrees, stakeholders and relevant internal teams are then involved as well. You can expect the  roadmap towards ISO 55001 implementation to take the following steps:

1. Assess your organization’s readiness

Before moving towards implementing ISO 55000, it helps to first get an idea of the current state of your organization. This baseline would give you an understanding of how closely your current processes relate to international standards. Knowing where your organization fits in with international standards will help you determine the amount of work needed to be put in, to move to the implementation phase.

2. Develop your asset management system

After establishing a baseline of your current operations, you can then move towards developing your asset management system. Earlier, we’ve covered the main parts of the asset management system. These are 1) asset management policy, 2) asset management objectives, 3) strategic asset management plan, and 4) asset management plan.

Other supporting elements that are pre-requisites to these four major components also need to be established. Details on the activities and processes that will be part of the asset management plan, for example, should be documented accordingly.

It will be beneficial to the organization to involve the right people in this process. Expect that some activities within this step will be done on top of the usual operations. This can cause a significant amount of additional work that would need to be efficiently planned out.

3. Perform a detailed gap assessment

The gap between where you are and where you want to be in terms of the management will be continually evolving. A well-timed gap assessment can mean a huge difference in the amount of insight to be gained.

A gap assessment can be performed before, during, or shortly after the development of an asset management system. Think of this process to be similar to the first step – assessing your organization’s readiness. Except this time, the intent is to gear up towards bridging the gaps, instead of merely establishing a baseline.

4. Bridge the gap

The actions you take on this step are equally, if not more important, than the previous step. In this phase, you should be able to identify concrete actions to improve your asset management system.

5. Operate and fine-tune

After all the hard work you’ve done brainstorming and planning, it’s time to put the system up for a test drive. With all processes in place, you can now proceed with implementation and evaluation procedures.

There will be points that you could not have seen coming while in the planning stages. That’s why you cannot let your guard down just yet while in this phase. Take this time during initial operations to continue learning and fine-tuning along the way.

At this point, with the proper culture and attitude, you would want to continue finding ways of improving your processes. Certification becomes an option, especially after building the confidence that you have built processes that adhere to the principles of proper asset management. While compliance with the standard is key, there may also be benefits in taking it further and being ISO certified.

How do I get ISO 55000 certified?

Certification can be a useful tool, particularly in situations wherein you want to build credibility with your customers. It is worth noting, however, that ISO itself would not be the certifying body to grant your certification. Though it may sound counter-intuitive,  ISO does not perform certification. They develop standards and documentation, but they do not issue certificates and are not involved in the certification process.

The certification process is handled by a separate entity – a certification body. In order to be ISO 55000 certified, you must choose a certification body that uses the ISO’s  Committee on Conformity Assessment (CASCO) standard. After selecting a body, you can expect a series of audits that you will need to pass in order to be granted an ISO certified status.

How long do ISO certifications last?

Recertification audits are usually  performed every three years. In that sense, you can think of your certificate to be valid for around three years.

Audits for recertification

This does not mean that you’ll only get audited once every three years. ISO audits come in different forms and are routinely done throughout the year:

Follow-up audit

A follow-up audit will be performed to ensure that minor nonconformities in the initial checks have been addressed. This would typically be performed within a year from the initial certification.

Surveillance audit

To ensure continual improvement, annual surveillance audits will also be performed. Think of these as checkpoints that will help you more easily achieve a recertified status.

Recertification audit

This audit is similar to the initial certification audit that would have granted you your certified status. This is an in-depth review performed every three years that looks at your processes and how they comply with the international standard.

Conclusion

Asset management is a philosophy that any conceivable organization can benefit from. More than realizing instant rewards, it promotes a culture that leverages assets through increasing value and managing risks. An international standard, such as ISO 55000, provides a framework that companies across various industries can use as a guide to implement an effective strategy.