Asset Management & ISO 55000 – What is the delineation between Asset Management, Maintenance and Reliability?

Asset Management & ISO 55000 – What is the delineation between Asset Management, Maintenance and Reliability?

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 #3

Why does every organization define asset management differently? 

terry wiremanTerry Wireman –  This is the third question that will be posed to the Expert Panel during Mainstream on June 8, 2015 at Denver Colorado.  How do we clearly define or differentiate between asset management, maintenance, and reliability?  In the last blog, asset management was defined as :

“The coordinated activities of an organization to realize value from the assets.”  (ISO-55000 3.3.1) Asset management identifies the “things” we do with our assets to deliver the value they were designed and purchased to deliver.

ISO-55000 2.4.2.d.2 states that “assurance… includes implementing processes for assurance of capability across all life cycle stages”.  Thus asset management applies to the entire life cycle of an asset.  This is where maintenance becomes the focus.  Since the majority of a physical asset’s life cycle cost is actually incurred during the operational and maintenance phase of its life cycle, proper maintenance policies and processes are essential to (a) insure the asset continues to perform as designed/specified and (b) insure the overall maintenance costs are consistent with what specified during the asset’s design phase.

Reliability can apply in two different phases of an assets life; during design and also during the operations and maintenance phase.  The design reliability is usually part of the overall systems engineering function when applied to assets.  The operational and maintenance reliability is usually undertaken to improve the reliability of existing assets after they have been in service for a period of time.  This is also called maintenance engineering in some organizations.

So the delineation is as follows:

Asset management is all of the activities that we undertake to realize value from the asset.

Maintenance activities are performed in operations and maintenance phase of the assets lifecycle and are designed to insure the asset continues to deliver the value it was designed to deliver.

Reliability can be applied in at least two phases of the assets life cycle, (1) design and (2) operations/maintenance.  It insures the asset delivers the design value or it improves the reliability to increase the design value.

Stay tuned for next weeks blog post – What are “Standards”?

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Asset Management & ISO 55000 – What is the delineation between Asset Management, Maintenance and Reliability? 2017-01-25T13:29:48+00:00

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

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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Asset Management & ISO 55000 – What are the accepted definitions and what are the central tenants to Asset Management? 2017-01-25T13:29:48+00:00

Asset Management & ISO 55000 – Why does every organization define asset management differently?

Asset Management & ISO 55000 – Why does every organization define asset management differently?

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 #1

Why does every organization define asset management differently? 

terry wiremanTerry Wireman – “For years there have been standard definitions for asset management.  It has been defined by the Global Forum on Maintenance and Asset Management (GFMAM).  It has been defined by the Institute for Asset Management (IAM) in their Anatomy and Competency documents.  Most recently asset management has been defined in ISO 55000.  For the most part all of these definitions are aligned.  In addition, there are derivatives of these definitions that have been adopted by various industry vertical associations.  Again, for the most part, these derivatives are aligned with the GFMAM, IAM, and ISO 55000 definitions.  So why do many organization have their “own” definition for asset management?  There are two reasons.

The first is, many individuals have not properly researched the field of asset management and have not read the aforementioned documents, so they feel the need to develop their own definition.  If they had properly researched the history of asset management, it would likely saved their organizations considerable time and resources trying to recreate existing materials.

The second is many individuals (and their organizations) feel that their business and (by extension) their assets are different.  They fail to learn from the leading organizations in asset management because they are not in the same vertical marketplace.   They will make statements like “that is asset management for petrochemicals, or for manufacturing, or for utilities”.  They fail to see the commonality in asset management between the various organizations.  This leads to their organizations to again, duplicate existing resource in attempt to produce their vision of asset management.

The bottom line is this should not happen.  If it does, then the progress that we will make will take longer than it should and take more resources that it should to develop a mature asset management process.”

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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Asset Management & ISO 55000 – Why does every organization define asset management differently? 2017-01-25T13:29:48+00:00

ISO-55000 and Regulatory Agencies

ISO-55000 and Regulatory Agencies

Now that ISO-55000 has been published, many individuals and organizations are questioning if they should adopt it.  Here is one more reason for companies to investigate ISO-55000 and see if it has application in their business.  It is Office of Management and Budget (OMB) Circular No. A-119 (https://www.whitehouse.gov/omb/circulars_a119) . What is the purpose of this document?  It clearly states in section 1 that “this Circular directs agencies to use voluntary consensus standards in lieu of government-unique standards”.  ISO-55000 is considered a voluntary consensus standard. Some other points in the circular that I found interesting: 1. Section 6 – “All federal agencies must use voluntary consensus standards in lieu of government-unique standards in their procurement and regulatory activities, except where inconsistent with law or otherwise impractical.”” Consider OSHA, EPA, FDA, etc. 2. Section 6a – “Your agency must use voluntary consensus standards, both domestic and international, in its regulatory and procurement activities in lieu of government-unique standards” Again, consider OSHA, EPA, FDA, etc. 3. Section 6e – “When properly conducted, standards development can increase productivity and efficiency in Government and industry, expand opportunities for international trade, conserve resources, improve health and safety, and protect the environment.” Very similar to the goals of ISO-55000 4. Section 9b – “Your agency must report to NIST, no later than December 31 of each year, information on the nature and extent of agency participation in the development and use of voluntary consensus standards from the previous fiscal year.” It appears that they are required annual updates on the Government use of voluntary standards.  Since ISO-55000 was just released in January 2014, they have until the end of the year to investigate the use of the standard. While there are many steps that must be taken before ISO-55000 is adopted by US Government entities, it is worth noting that the basis for their adopting it exists.  The real question is “Are YOU getting educated about ISO-55000 in order to help your company navigate its course into the future?”.

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ISO-55000 and Regulatory Agencies 2017-01-25T13:29:53+00:00
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