ISO 55000 and the benefits of
implementation for Councils
Presentation © IQ-AM Pty Ltd
RTO 22515
ABN 77147017525
Some content from other sources
utilised for educational purposes
Tom Carpenter
CEO, IQ-AM Pty Ltd
Certified Asset Management Assessor
Asset Management Council AMBOK Team Member and Victorian Chapter Chair
JAS-ANZ Accreditation Auditor
ISO PC 251 Australian Co-Representative
ISO WG39 Australian Representative
JAS-ANZ Accreditation Scheme Tech Committee Representative
External Drivers
• Regulators:
−
−
−
Economic
Environmental
OH&S
• Government:
−
−
Central agencies – Treasuries
Service Agencies
• Legal (Protection and Attack)
• Customers and Community
• Boards/Governance
/Top Management
• Investors and Lenders
• Insurance/ Risk Management
2
External Drivers
–
–
–
–
–
Asset Design
Maintenance
Asset Age
Risk analysis and management
Resources, skills, management
and supervision
– Training
– Renewal and Replacement funding
– Customer willingness to pay
Case Study 2
The Victorian Black Saturday
Bushfire Royal Commission
investigated:
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 –
Aquamark &
future ISO
Standard
IPWEA IIMM
WA Treasury
– Guidelines
Ausroads –
Guidelines
Organisational/
Other
Guidelines &
Standards
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
Organisational Objectives
(ISO 55001 Clauses
9.3 (c), (f), (g))
ISO 55001 Maintenance Logic Map © 2013
(ISO 55001 Clauses 4.1, 4.2)
(based on DIS draft, may be subject to change)
Asset Management Plan(s)
(ISO 55001 Clauses
9.3 (c), (f), (g), 10.2)
Unplanned/Reactive EVENTS
(ISO 55001 Clauses 4.4, 5.2, 6.1, 6.2)
Maintenance Plan
(ISO 55001 Clause 6.1)
Corrective Action
(Strategy)
(ISO 55001 Clause 10.1)
Remedial
Maintenance Plan
(ISO 55001
Clause 6.1)
(ISO 55001 Clause 10.1 (b))
(Tactics and Program)
(ISO 55001 Clause 8.1)
Emergency/Crisis
Deferred
(ISO 55001 Clause 10.1(a))
Proactive Activities/Actions
(ISO 55001 Clause 10.2)
‘Passive’
programming
pathway
Manufacturer’s
recommendations,
time and/or usage,
MTBF, or expected
life based
Outputs from
continuous or
periodic condition
monitoring
Preventive
(ISO 55001 Clause 10.1
(called up by 10.2))
‘Dynamic’
programming
pathway
Operational
Deferred Corrective
Maintenance (CDM)
(ISO 55001 Clause 10.1 (a))
Improvement/
Renewal/
Replacement
(ISO 55001 Clauses 7.5, 9.1, 10.1 (d), (e), 10.3)
Performance monitoring and reporting
(ISO 55001 Clause 6.2.2)
OUT TO
Breakdown
Capital Processes/Plans
(ISO 55001 Clause 10.1 (c))
Immediate Corrective
Maintenance (CIM)
(ISO 55001 Clause 10.1 (a))
IN FROM
Predictive Activities
(ISO 55001 Clause 10.2)
Improvement/Renewal/Replacement
(ISO 55001 Clause 10.1 (c))
Outputs from
statistical analysis,
FMECA, RCA,
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
and understanding
ISO 5500#
Strategic
Planning
LEGAL AND STAKEHOLDER
REQUIREMENTS AND EXPECTATIONS
ORGANISATIONAL
STRATEGIC PLAN
Asset
Management
Philosophy &
Framework
ASSET MANAGEMENT POLICY
Enabling
Processes
for Asset
Management
Asset management processes, procedures
& standards for each asset type
Tactical
Planning
Optimised asset management strategy,
objectives, level of service targets and plans
Monitoring and review
Continual Improvement
Implement asset management solutions
Asset Solutions – operate, maintain, renew,
enhance, retire
Non-asset solutions – demand management,
insurance, failure management
Asset Management
Information Systems
and Data
Management
Operational
Planning
ASSET MANAGEMENT PLANNING
Vision, Mission, Objectives, Level of Service,
Business Policies, Risk
Asset data and information systems
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 Decision-Making
1GFMAM
Asset Management Policy
Asset Management Strategy
Demand Analysis
Strategic Planning
Asset Management Plan
Whole-life Cost & Value Optimisation
Operations & Maintenance DecisionMaking
Capital Investment Decision-Making
Resourcing Strategy & Optimisation
Shutdowns & Outage Strategy &
Optimisation
Ageing Assets Strategy
– 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
Enablers
Risk & Review
Contract & Supplier Management
Asset Management Leadership
Organizational Structure & Culture
Competence & Behaviour
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)
Managing the
Organisation
Asset
Management
System
Asset
Management
Asset
Portfolio
Set of inter-related or
Interacting Elements to
establish AM policy, AM
objectives and processes
to achieve those
objectives
Coordinated activity of
an organisation to
realize value from assets
Assets that are within
the scope of the asset
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
management:
coordinated
activity of an
organization
to realize
value from
assets
Organizational context
Leadership
Planning
Support
Operation
Performance evaluation
Improvement
21
(55001 Cl 5.1)
(55001 Cl 4)
Internal &
AM
Relevant
& Management
Asset &
External Issues Organisational
Organisational Nature
/Business
Stakeholder’s
Scope of
Scale
of
Organisational
(Operating
Objectives Operations
System
needs &
Assets
Policies
Capability
(55001Cl 4.1, 4.2)
Env)
Integration expectations (55001Cl 4.1, 4.2) (55001Cl 4.3)
(55001Cl 5.2)
(55001Cl 5.2)
(55001Cl 4.1, 4.2)
(55001Cl 4.3, 6.1)
(55001Cl 4.2)
AM System Element
AM Policy
(55001 Cl 5.2)
AM System key linkage
AM
Objectives
Strategic Plan for Asset M anagement
(55001 Cl 4.4)
(55001Cl 6.2.1)
Communication
(55001Cl 7.3)
(55001Cl 5.3)
(55001 Cl 7.1)
NOTE: Based on
ISO 55001 DIS Draft
(subject to change)
Competence
(55001 Cl 7.2)
(55001 Cl 7)
Aw areness
(55001 Cl 7.3)
Information
(55001 Cl 7.5)
Information
M anagement
& Control
AM Plan(s)
(55001 Cl 6.2.2)
(55001 Cl 7.6, 4.2)
AM & AM S Operations (55001 Cl 8)
Plan, Implement & Control
(55001 Cl 8.1)
Change M anagement
(55001 Cl 8.2)
Outsourced Activities
Asset Portfolio
Products and Services
Stakeholders Incl. Customers
(55001Cl 4.1, 4.2)
(55001 Cl 8.3)
Failures & Incidents (55001Cl 10.1)
Resources
AM Support
M onitor & Report (55001 Cl 4.2, 9.1)
AM Roles, Responsibilities & Authorities
AM Decision Making & Prioritisation
Methodologies & Tools (55001Cl 6.2.2)
AM Decision M aking Criteria (55001 Cl 4.2)
Preventive/ Predictive (55001Cl 10.2)
Overarching AM System Element applying to
all other Elements
Audit (55001 Cl 9.2)
Leadership (55001 Cl 5)
External System Element
Performance Evaluation (55001 Cl 9)
(55001 Cl 5.2)
Risks and Opportunities (55001Cl 6.1, 8.2)
AM System Interface/ Overlap Element
Improvement Activities (55001 Cl 10)
LEGEND
Organisational Corporate Plan
Continual Improvement (55001Cl 10.3)
Organisational Context
Management Review (55001Cl 9.3)
Top Management
AM Leadership & Commitment
Elements of the ISO 55001 AMS
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
making ‘power’ in this process
24
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
is Maintenance
Management in drag…
Asset Management
is Accounting in drag…
Asset Management
is Maintenance in drag…
Asset Management
is Reliability Engineering
in drag…
Asset Management
is Financial Management
in drag…
Asset Management is
Facility Management
in drag…
The Asset Manager?
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
Other/Local Standards,
Legislation,
Regulations
Occupational Health &
Safety BS 18001/AS/
NZS4801
Asset Management
(ISO 55001)
Environmental
Management
(ISO 14001)
Quality Management
(ISO 9001)
Common Elements
or Requirements
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?