Asset Management & ISO 55000 – What are the accepted definitions and what are the central tenants to Asset Management?

During the Mainstream Conference 2015 in Denver Co (June 7-9), there will be a panel session “Asset Management & ISO 55000 – What are they and What is in it for Me?” on Monday afternoon.  There are seven starter questions that the panelists will address during the discussion.

To get an early start on this conversation, stay tuned to our blog which will be posting insight into each question weekly, before the Mainstream Conference begins on June 7th.

Question #2

What are the accepted definitions and what are the central tenants to Asset Management?

terry wiremanTerry Wireman – An asset is defined as an “item, thing or entity that has potential or actual value to an organization”.  While an asset can be tangible or intangible, the ISO-standard was written with primarily physical assets as the focus.

Asset management is the coordinated activities of an organization to realize value from the assets.  Asset management identifies the “things” we do with our assets to deliver the value they were designed and purchased to deliver.

An asset management system is a management system for asset management, which will establish the asset management policy and the asset management objectives.  The AM system will insure that resources, the competence, the awareness, the communication, the information requirements and the documented information are all “enabled” and focused on enabling the value that asset management delivers from the assets.

The relationship can be illustrated as follows:

iso55000-terrywireman

As seen in the diagram, the “Managing the Organization” circle is the overall strategic business goals and objectives for the company.  The “Asset Management” circle describes how the assets are going to be utilized to achieve the company’s overall strategic business goals and objectives.  The asset management system are the things the organizations needs to do/ provide to achieve the defined asset management activities.  The asset portfolio is the asset(s) within the scope of the asset management system.

With these definitions in mind, in our next blog we will examine how maintenance and reliability fit into the context of asset management.

Stay tuned for Terry Wireman’s next response to “Asset Management & ISO 55000 – What are they and What is in it for Me?”

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