On June 8th, the Mainstream conference hosted the expert panel discussion on Asset Management and ISO-55000. This was a lively discussion with differing perspectives on ISO-55000 and asset management. The moderator began by asking for opening statements from each of the panelists, which led to a series of questions about the impact of asset management on an organization’s profitability. The answer to this issue was highlighted in ISO-55000, section 2.2 where the value derived from achieving the organization’s business plan. In this section of the standard, it also highlights the point that return on investment can be achieved without sacrificing short term or long term organizational objectives.
This means that short term gains can be achieved without pure “cost-cutting”, which typically disables potential future gains by reducing resources to a “survival” mode. By the discussion, it was apparent that there are many opportunities for improving an organization’s services and production outputs short term, and still be able to preserve the long term asset value. This alignment (line of sight) to the business will provide significant financial benefits to the organization.
There are many enablers that an organization must have in place to accomplish this financial goal, such as properly structured organizations, clear roles, responsibilities and authorities. All of these enablers must be focused on short and long term goals of the organization.
In addition, there was considerable discussion as to the rate at which companies will adopt and implement ISO-55000. It appeared to be a consensus that ISO-55000 would likely follow the same pattern of implementation as did ISO-9000. This likely means that the standard will see adoption by international companies first, followed by companies in North America later. Even then it is likely to be regulatory, insurance, and legal pressures that will move North American companies to adopt ISO-55000.
It will be interesting to watch the development of the implementation trends of the ISO-55000 standard.
Asset Management & ISO 55000 – What is the ISO 55000 standard and what value does it add to an organization?
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.
Our final question in this series of blogs is “What is the ISO 55000 standard and what value does it add to an organization?”
Rhys Davies, the Chairman of PC-251 commented on this in an ISO interview. When discussing assets, he said:
“Well, in this new standard we have defined an asset as an item, thing or entity that has potential or actual value for an organization. This is vague, but in fact purposefully so. We wanted to make it clear to everyone that an asset can be anything from tangible and physical items such as rails, trains and vehicles to the more intangible such as the reputation of a company. “
“The major benefit is of course being able to realize value from your assets, and one of the great things about this approach is that there are many quick wins early on in the process. Some are related to the improved knowledge of assets, as I have already mentioned. In addition, the approach can help improve the relationship with stakeholders. Value doesn’t necessarily mean monetary gain and defining what the value is for an asset is often a conversation that happens with people outside the company or organization.”
This quote focuses on the point that asset management (and ISO-55000 in particular) focuses on the value delivered by an asset.
All assets are acquired by an organization to fulfill a business need. Whether it is to produce a new product, increase capacity for current market demand, or to replace an existing asset. Understanding what value the assets were designed to deliver is a key part of fully realizing their full value. In addition, the asset needs to be properly managed throughout its life cycle to maximize the value it can deliver.
As was highlighted in the second blog in this series, asset management must be for the life of the asset. Consider the following diagram.
While it is outside the scope of this blog to consider how the asset is managed throughout the 7 stages listed above, consider the impact that 5 and 6 could have on the overall value delivery. Over 80% of the assets life cycle costs are incurred during this phase of the asset’s life. If excessive resources are consumed trying to keep the asset performing properly, the planned value delivery of the asset will be less than projected. This will reduce profitability of the company. This will also reduce measures typically used by Wall Street such as Return on Assets (ROA). This has a direct impact on the company’s financial ratings.
If you have found this series of blogs interesting, stop in during the keynote panel to hear additional thoughts about asset management – or stop in our booth #21 for a more in depth discussion.
Bring your business card to enter into Vesta Partners raffle. We will be raffling off a signed copy of Terry Wireman’s latest book titled: “Benchmarking Best Practices for Maintenance, Reliability and Asset Management.” Stop by booth 21 for your chance to win!
Terry Wireman joins the 2015 Mainstream Conference as a keynote panelists
Terry L. Wireman, Senior Vice President of Strategic Development at Vesta Partners, will be one of three keynote panelists at this year’s Mainstream Conference taking place in Westminster, CO. For over two decades, Mr. Wireman has specialized in the improvement of maintenance management and reliability. He has authored fifteen books and numerous white papers, articles and blog posts related to maintenance management process and technology. During this interactive keynote panel, Wireman together with other experts will discuss Asset Management and the implementation of ISO 55000 as they examine the following questions:
Why does every organization define Asset Management differently?
What are the accepted definitions and what are the central tenants to Asset Management?
What is the delineation between Asset Management, Maintenance and Reliability?
What are standards and how are they applied?
What is the ISO 55000 standard?
What is the value of ISO 55000 and what are the differences between certification and compliance?
What are the implications of compliance and non-compliance and how can organizations best position themselves?
A short preview of what’s to come at the 2015 Mainstream Conference:
“What is ISO 55000 and What’s in it for Me? Every organization defines Asset Management differently. To some, it simply means maintenance departments that are tasked with ensuring asset health, and for others, it is a regimented set of best practices and processes they follow with specialized teams and skill sets. More so, other organizations are even incorporating the latest asset management standard, ISO 55000, into their asset management programs and exploring how this will empower their organizations to achieve optimal asset integrity.”
Maximise the Functionality of Your CMMS to Meet ISO 55000 Standards
During this years two part Mainstream Australia Conference that took place in Brisbane and in Perth, Vesta’s Principal Consultant, John Dwyer presented a Deep Dive Session on Maximizing the Functionality of Your CMMS to Meet ISO 55000 Standards. Here’s an overview of John’s thoughts on the topic:
While ISO 55000 focusses on the management requirements to achieve effective asset management, meeting many of these management requirements requires the support of a CMMS to manage the large volumes of data and support the necessary day-to-day, analytical and management processes. There are many areas where your CMMS can be utilized for this purpose, and this post will focus on four areas of opportunity to utilize your CMMS to support ISO 55000 requirements.
Maintaining the Asset Register: ISO 55000 calls for accurate identification of assets and their attributes, and management of this asset data over the asset lifecycle. The CMMS is the key receptacle of this data, but keeping it up to date and maintaining the data quality are challenges for any organization. The key considerations in achieving this, and a generic high-level CMMS solution concept to support those considerations and meet ISO 5000 requirements, were presented.
Asset Management Plans (AMP’s): ISO 55000 has at its heart the concept of AMP’s as the basis of achieving the desired asset management (and thus corporate) objectives. AMP’s extend from high-level multi-year programs down to plans for an individual asset, and cover areas as diverse as budgeting, resourcing and risk management. No single solution fully covers this whole range of needs, and two solution concepts were presented – one for the overall asset programs based on PPM (Portfolio Management) concepts, and the other for the highly detailed underlying individual asset programs (based on third party analytical tools, such as Meridium and Reva). When combined, the tool sets for these areas provide a powerful solution addressing the need to drive asset management objectives right down to the individual assets, and to reflect them into the high level and long range corporate financial, resourcing and risk management planning.
Outsourcing: ISO 55000 makes no concessions for outsourcing, and states explicitly that responsibility and control for asset management and data cannot be outsourced. This leads to some interesting requirements on interfacing of data between asset owners and their outsourcers, and the generic means of addressing this need were discussed, with a particular focus around the ISO 55000 requirements to ensure conformance to consistent standards of asset management across all the assets, whether insourced or outsourced.
System Assurance and Improvement: ISO 55000 not only requires that data and processes are in place to meet its requirements, but also that there is assurance at management level that they remain in place, that their quality and integrity is not degraded over time, and that they are being continually improved. This necessitates a whole range of processes around incident investigations, root-cause analysis and followups, management of change, data and process auditing, and identifying and managing continuous improvement processes. Solution concepts were presented for management of these processes, extending from identification, approval and execution, through to the management level reporting and followup demanded by ISO 55000.
The solutions presented are not a complete solution for ISO 55000 compliance (which in any case requires much more than just a software solution), but can provide a framework around which some of the more challenging and less obvious areas of meeting ISO 55000 compliance can be placed.
Vesta Partners, a Partner Sponsor of the Mainstream Australia Conference
Celebrating its 20th year in 2015, Mainstream Australia is where asset management leaders and teams come together to share knowledge, experience and innovation. As a two part conference, Mainstream Australia will hold its first half in Brisbane on March 23-25th, followed by the second half in Perth on March 30th- April 1st.
Vesta Partners is proud to join Mainstream Australia as a Partner Sponsor for both parts of the conference this year. Vesta’s very own Principal Consultant John Dwyer, will be speaking at both locations, Brisbane and Perth. Dwyerwill present a “Deep Dive Session: Maximize the Functionality of Your CMMS to Meet ISO 55000 Standards”. This presentation will focus on opportunities to utilize CMMS to support ISO 55000 requirements related to:
• Asset information and life cycle management
• Management of change
• Managing outsourcing and ensuring conformance to standards
• Identifying and managing risk
• Nonconformities, management of corrective action, and elimination of root causes
• Performance evaluation – monitoring, measurement, analysis and evaluation of assets and processes, and their effectiveness
• Auditing of processes and data
• Driving toward continual improvement
More than 300 customers, partners, leaders and experts in the industry will attend the 20th year of Mainstream in Australia.
Stay tuned for more information about John Dwyer’s Deep Dive Session!
Vesta excited to be an exhibitor at the 2014 MAINSTREAM™ Conference in Austin, Texas, being held June 16th through the 19th. This conference will cover a range of asset management-related topics including:
Leadership, People and Culture
Reliability, Maintenance, and Asset Management
Operations and Supply Chain
A “Hot Topics” Showcase
Workshops and Keynotes will include:
Show Me the Money: Speaking to Leaders in Dollars and Sense – Justifying the Value of Reliability and Maintenance Excellence to Senior Management
From Cradle to Grave and Everything In-Between: Aligning for Success
Slaying the Change Management Dragon: How Hard Lessons Learned Will Lead a Plant to Becoming THE Leader in Reliability
Click here to see the full agenda and click here for more information on tickets and packages. Vesta looks forward to connecting in Austin!
Vesta to be a 2014 partner for MAINSTREAM Brisbane
Vesta is pleased to be a partner at the 2014 MAINSTREAM™ Conference in Brisbane, Australia, being held May 18th through the 20th. This conference will cover a range of asset management-related topics including:
Organization, Leadership, and People
Strategic Shutdowns and Turnarounds
Workshops and Panel discussions will include:
Root Cause Analysis – Doing the Right Maintenance to Achieve Requirement Performance Based on Understanding System Condition and Reliability
Smart and Self-Diagnosing Assets: Driving Reliability and Maintainability
Driving Culture Change Through Improved Communication and Employee Engagement
It’s not too late to register for this exciting event. Click here to see the full agenda and click here for more information on tickets and packages. See you in Perth! management
Vesta is pleased to be a partner at the 2014 MAINSTREAM™ Conference in Perth, Australia, being held May 12th through the 14th. This conference will cover a range of asset management-related topics including:
Organization, Leadership, and People
Strategic Shutdowns and Turnarounds
Workshops and Panel discussions will include
Back to the Future – Climb Inside Our Time Machine and See the Future of Asset Management – Meet the People, Processes and Technology That will Take the Mainstream Community to 2029
Improving Production with a Simple Asset Care Philosophy in a High Performance Operations Environment
Back to Basics – Maintaining for Reliability
It’s not too late to register for this exciting event. Click here to see the full agenda and click here for more information on tickets and packages. See you in Perth!