ISO 55000 and the benefits of

implementation for Councils

Tom Carpenter
CEO, IQ-AM Pty Ltd
Certified Asset Management Assessor
Asset Management Council AMBOK Team Member and Victorian Chapter Chair
Presentation © IQ-AM Pty Ltd JAS-ANZ Accreditation Auditor
RTO 22515
ABN 77147017525
ISO PC 251 Australian Co-Representative
Some content from other sources ISO WG39 Australian Representative
utilised for educational purposes
JAS-ANZ Accreditation Scheme Tech Committee Representative
 External Drivers

• Regulators: • Legal (Protection and Attack)

− Economic • Customers and Community
− Environmental • Boards/Governance
− OH&S
/Top Management
• Government:
− Central agencies – Treasuries
• Investors and Lenders
− Service Agencies
• Insurance/ Risk Management
2
 External Drivers
The Victorian Black Saturday
Bushfire Royal Commission
investigated:
– Asset Design
– Maintenance
– Asset Age

Case Study 2
– Risk analysis and management
– Resources, skills, management
and supervision
– Training
– Renewal and Replacement funding
– Customer willingness to pay 3
 What is Asset Management?

Definition:

3.3.1
asset management: coordinated activity of an
organization (3.1.14) to realize value from assets (3.2.1) 1

What it does:

Asset management translates the organization's

objectives into asset-related decisions, plans and
activities, using a risk based approach. 1
1 Definition and text extracted from ISO 55000 FDIS Draft (© ISO, 2013) 4
 International Standard

ISO 55000 – Definitions

ISO 55001 – Requirements
ISO 55002 – Guidelines

WSAA – IPWEA - WA Treasury Ausroads – Organisational/

IIMM – Guidelines Guidelines Other
Aquamark & Guidelines &
future ISO Standards
Standard
Regulators will use the International Standard
as the independent ‘test’ or benchmark
 What is Asset Management?

During an utility industry benchmarking study it was

determined that the cost of the Asset Management ‘System’
made up only 3% of industry cost –
however:
the outputs (activities and decisions) generated or impacted
on at least 82% of industry’s Total costs.
 Example of alignment of Managing the
Organisation, the AMS, AM and managing Assets
(ISO 55001 Clauses Organisational Objectives ISO 55001 Maintenance Logic Map © 2013
9.3 (c), (f), (g)) (ISO 55001 Clauses 4.1, 4.2) (based on DIS draft, may be subject to change)

(ISO 55001 Clauses Asset Management Plan(s) Unplanned/Reactive EVENTS

9.3 (c), (f), (g), 10.2)
(ISO 55001 Clauses 4.4, 5.2, 6.1, 6.2)

Maintenance Plan
(ISO 55001 Clause 6.1) (Strategy) Corrective Action
(ISO 55001 Clause 6.2.2) (ISO 55001 Clause 10.1)
Performance monitoring and reporting

Remedial
(ISO 55001 Clauses 7.5, 9.1, 10.1 (d), (e), 10.3)

Maintenance Plan (ISO 55001 Clause 10.1 (b))

(ISO 55001
Clause 6.1)
(Tactics and Program)
(ISO 55001 Clause 8.1) Emergency/Crisis
Deferred (ISO 55001 Clause 10.1(a))
Deferred Corrective
Maintenance (CDM)
Improvement/ (ISO 55001 Clause 10.1 (a))
Proactive Activities/Actions
Replacement
Renewal/

Operational
(ISO 55001 Clause 10.2) OUT TO
Breakdown
Capital Processes/Plans Immediate Corrective
‘Passive’ ‘Dynamic’ Maintenance (CIM)
programming programming (ISO 55001 Clause 10.1 (c)) (ISO 55001 Clause 10.1 (a))
pathway pathway

Manufacturer’s IN FROM
recommendations, Outputs from
time and/or usage, continuous or Predictive Activities
MTBF, or expected periodic condition
monitoring
(ISO 55001 Clause 10.2) Improvement/Renewal/Replacement
life based
(ISO 55001 Clause 10.1 (c))

Outputs from
Preventive statistical analysis,
FMECA, RCA,
(ISO 55001 Clause 10.1
(called up by 10.2)) RCM, Failure
prediction models
Shutdown/Outage
Routine and/or Running
(ISO 55001 Clause 10.1 (c)) Preventive Modification Corrective
(ISO 55001 Clause 10.1 (c))
7
 Management System Certification
Existing frameworks ISO 5500#
and understanding
LEGAL AND STAKEHOLDER
REQUIREMENTS AND EXPECTATIONS

Strategic
Planning
ORGANISATIONAL
STRATEGIC PLAN
Vision, Mission, Objectives, Level of Service,
Business Policies, Risk

Asset
Management
Philosophy & ASSET MANAGEMENT POLICY
Framework
ASSET MANAGEMENT PLANNING

Optimised asset management strategy,

objectives, level of service targets and plans
Planning
Tactical
Continual Improvement
Monitoring and review

Enabling
Processes
Asset management processes, procedures
for Asset
& standards for each asset type
Management

Implement asset management solutions

Asset Solutions – operate, maintain, renew,
enhance, retire
Non-asset solutions – demand management,
insurance, failure management
Operational
Planning

Asset Management
Information Systems
and Data Asset data and information systems
Management

8
 Is this Asset Management?
The GFMAM1 Landscape
The GFMAM 39 essential Asset Management Subjects
Subject Group Asset Management Subject
Asset Management Strategy and Planning Asset Management Policy
Asset Management Strategy
Demand Analysis
Strategic Planning
Asset Management Plan
Asset Management Decision-Making Whole-life Cost & Value Optimisation
Operations & Maintenance Decision-
Making
Capital Investment Decision-Making
Resourcing Strategy & Optimisation
Shutdowns & Outage Strategy &
Optimisation
Ageing Assets Strategy
1GFMAM – Global Forum for Maintenance and Asset Management
 Is this Asset Management?
GFMAM Landscape
The GFMAM 39 essential Asset Management Subjects
Subject Group Asset Management Subject
Lifecycle Delivery Activities Technical Standards & Legislation
Asset Acquisition & Commissioning
Systems Engineering
Configuration Management
Maintenance Delivery
Reliability Engineering
Asset Operations
Resource Management
Shutdown & Outage Management
Fault & Incident Response
Asset Rationalisation and Disposal
Asset Knowledge Enablers Asset Information Strategy
Asset Knowledge Standards
Asset Information Systems
GFMAM – Global Forum for Maintenance and Asset
Asset DataManagement
and Knowledge
 Is this Asset Management?
GFMAM Landscape
The GFMAM 39 essential Asset Management Subjects
Subject Group Asset Management Subject
Organization and People Contract & Supplier Management
Enablers Asset Management Leadership
Organizational Structure & Culture
Competence & Behaviour
Risk & Review Criticality, Risk Assessment and Management
Contingency Planning & Resilience Analysis
Sustainable Development
Weather and Climate Change
Asset & Systems Change Management
Assets & Systems Performance & Health
Monitoring
Management Review, Audit & Assurance
Accounting Practices
Stakeholder Relations
GFMAM – Global Forum for Maintenance and Asset Management
Is this Asset Management?

12
 Systems Thinking:

Definition of a ‘System’1:
A system is a group of interacting, interrelated, and interdependent
components that form a complex and unified whole

Systems have several defining characteristics1:

• Every system has a purpose within a larger system
• All of a system's parts must be present for the system to carry out
its purpose optimally.
• A system's parts must be arranged in a specific way for the system
to carry out its purpose.
• Systems change in response to feedback.
• Systems maintain their stability by making adjustments based on
feedback.

1 Extracted from: http://www.pegasuscom.com/systems-thinking.html 13

 What is Asset Management?

A group of interrelated, interacting, and interdependent

components that form a complex and unified whole
 What is Asset Management?

…or is it also how you put the activities together?

i.e. from this to this… and avoid this…

15
What is Asset Management?

16
 What is Asset Management?
Asset Management Council AM Framework:

17
ISO 55000 - Relationships between
key terms (modified)

Set of inter-related or
Managing the Interacting Elements to
Organisation establish AM policy, AM
objectives and processes
to achieve those
objectives
Asset
Management
System
Coordinated activity of
an organisation to
Asset realize value from assets
Management

Assets that are within

Asset
the scope of the asset
Portfolio management system

18
Being Certified…

19
 ISO 9000
Issues:
• Failure to recognise that the QMS had a purpose
• Failure to link process quality to improvement in
outputs or outcomes
• Quality control of audit process

“Ring the
boss, tell him
we’ve fixed all
the potholes”
 Elements of the ISO 55001 AMS

asset Organizational context

management: Leadership
coordinated
Planning
activity of an
organization Support
to realize Operation
value from
assets Performance evaluation

Improvement
21
 Elements of the ISO 55001 AMS
AM Leadership & Commitment

Continual Improvement (55001Cl 10.3)

Organisational Context
(55001 Cl 4)
Top Management

Internal & & Management AM

(55001 Cl 5.1)

Relevant
External Issues Organisational Organisational Nature /Business Stakeholder’s Asset & Scope of
Scale of Organisational

Management Review (55001Cl 9.3)

(Operating Policies Objectives Operations System needs & Capability Assets
Env) (55001Cl 5.2)
(55001Cl 4.1, 4.2)
(55001Cl 5.2) Integration expectations (55001Cl 4.1, 4.2) (55001Cl 4.3)
(55001Cl 4.1, 4.2) (55001Cl 4.3, 6.1) (55001Cl 4.2)

LEGEND

Improvement Activities (55001 Cl 10)

AM System Element
Organisational Corporate Plan

Risks and Opportunities (55001Cl 6.1, 8.2)

AM System Interface/ Overlap Element

Performance Evaluation (55001 Cl 9)

(55001 Cl 5.2)
External System Element
Overarching AM System Element applying to
Leadership (55001 Cl 5)

Preventive/ Predictive (55001Cl 10.2)

all other Elements
AM System key linkage
(55001 Cl 5.2)
AM Policy

AM Strategic Plan for Asset M anagement

Objectives

Audit (55001 Cl 9.2)

(55001 Cl 4.4)
(55001Cl 6.2.1)

AM Decision Making & Prioritisation

Methodologies & Tools (55001Cl 6.2.2)
AM Decision M aking Criteria (55001 Cl 4.2)
AM Roles, Responsibilities & Authorities

Communication Information
AM Support

M onitor & Report (55001 Cl 4.2, 9.1)

(55001Cl 7.3) (55001 Cl 7)
M anagement
& Control
AM Plan(s)
Resources Competence Aw areness Information

Failures & Incidents (55001Cl 10.1)

(55001 Cl 6.2.2)
(55001 Cl 7.1) (55001 Cl 7.2) (55001 Cl 7.3) (55001 Cl 7.5) (55001 Cl 7.6, 4.2)
(55001Cl 5.3)

AM & AM S Operations (55001 Cl 8)

Plan, Implement & Control Change M anagement Outsourced Activities
(55001 Cl 8.1) (55001 Cl 8.2) (55001 Cl 8.3)

Asset Portfolio

Products and Services

NOTE: Based on
ISO 55001 DIS Draft Stakeholders Incl. Customers
(55001Cl 4.1, 4.2)
(subject to change)
 Management System Certification

Buyer
Beware!

Conformity Assessment Body

Audit Team

Organisation
23
 Management System Certification

Current (transitional) situation

• Any Conformity Assessment Body (CAB) accredited to
certify ‘Management Systems’ can certify against ISO 55001

• The CAB is responsible for determining its auditor’s

competence

• ISO/IEC 17021-5 (auditor competency technical

specification) published on the 1st of April 2014 but neither
it, nor 17021-1 are enforceable as there is no ‘accreditation
scheme’ for CAB’s

• The Asset Management community had NO decision 24

making ‘power’ in this process

 Management System Certification
• JAS-ANZ has developed a Conformity Assessment Body (CAB)
Accreditation Scheme based on:
– ISO/IEC 17021 –Requirement’s for management system auditing CAB’s
– ISO/IEC 17021-5 for ISO55001 audit team technical competencies
– GFMAM AM Landscape
– Asset Management Community providing AM accreditation
input
• Processes to be completed:
• JAS-ANZ take the Accreditation Scheme to PAC (Pacific Accreditation
Cooperation) – meeting in Mexico in June
• Then to EA (European co-operation for Accreditation) and ANSI-ASQ
National Accreditation Board (ANAB)
• Then to the International Accreditation Forum (IAF). 25
 Other Processes/Activities

• PAS 55 – Technical Specifications are normally

withdrawn when a corresponding Standard has
been released
• AMCouncil has released an ISO55001 ‘Companion
Guide’ document.
• WPiAM has created an auditor knowledge exam
and certification (Certified Asset Management
Assessor (CAMA)
• IIMM being re-issued (2011 mapping doc avail)

26
 Management System Certification
Key features of the Accreditation Scheme:
Will contain:
– Requirements for the CAB
– Requirements for the Client
– Interpretation and application of the Standard
– Requirements for CAB use of subcontractors
Key features:
− Auditor competencies
− CAB Report content requirements
− Any key elements of ISO55002 (interpretation and
application of ISO55001) 27
 Auditor Competency

Asset Management
Asset Management
is Maintenance
is Accounting in drag…
Management in drag…
Asset Management
is Maintenance in drag…

Asset Management is
Asset Management
Asset Management Facility Management
is Financial Management
is Reliability Engineering The Asset Manager?
in drag…
in drag…
in drag…
 Who can be Certified?

ISSUE: Under what circumstances, or contractual

arrangements, will Certification be possible?
Owners?
Asset Managers?

Service Providers?

Is the determinant: those who make

AND control implementation of life
cycle management decisions linked
to value generation?
 Who can be Certified?

ISSUE: Under what circumstances, or contractual

arrangements, will Certification be possible?

• Contracted Service Provision

− Unit Cost based activities
− Works Management
• BOO/BOOT
• Alliances
• Others?
 Integrated Management System Auditing

What parts or elements of the ISO 55001 AMS fit under the
IBMS framework, & which require Asset Management/AMS
specific technical skill.
Additional specific
technical skill required

Common Elements
or Requirements
Occupational Health &

Other/Local Standards,
Quality Management

Safety BS 18001/AS/
Asset Management
Environmental
Management
(ISO 14001)

(ISO 55001)
(ISO 9001)

NZS4801

Regulations
Legislation,

31
 Impact on consultant service offerings

ISSUE: Process
Improvement
data gathering or
analysis tools will
require mapping
or modification

Issue: Does the Asset Management

Process Improvement audit/gap
tool I use, address all elements of
the ISO 55001 Standard and what is
being done to ensure alignment?
33
34
 CERTIFICATION CONFORMANCE GRADES

1. Major nonconformity: One or more elements of ISO 55001 are

not met, or the outcome is ineffective.
2. Minor nonconformity: One or more elements of ISO 55001 are
not fully met, or the outcome is only partly effective.
3. Conforms (first certification audit) fully documented,
performance managed, integrated and subject to defined
audit, review, continuous improvement and updating.
4. Conforms at re-certification fully documented, performance
managed, integrated and subject to defined audit, review,
continuous improvement and updating with proven evidence
of continuous improvement action completion.

35
CERTIFICATION BENCHMARKING?

36
CERTIFICATION PATH TO MATURITY

37
KEEPING STAKEHOLDERS ON SIDE

38
Questions?