Bridging the Gap:
Connecting Asset Management
Disciplines in a World of
Standards, Best Practices, and
Measuring Outcomes
Robert Kaehler, CPPS
Bay Area Chapter
Marketing and Selling High-Tech
Products to Mainstream Customers
CROSSING THE CHASM
- DR. GEOFFREY MOORE
Standards
• Technical Standards
• Management Systems Standards
They’re for “the other guy”
A WORD ABOUT BEST PRACTICES
Technical Standards
• Technical standard, an established norm or
requirement about technical systems
• International standard, standards suitable for
worldwide use
• Open standard, a standard that is publicly
available
• Standard operating procedure, a step-by-step
instruction to achieve a desired result
• Standard (metrology), an object that bears a
defined relationship to a unit of measure used
for calibration of measuring devices
• De facto standard, product or system with
market dominance
ISO 55000 –
A Management System Standard
• A management system is the
framework of processes and
procedures used to ensure that an
organization can fulfill all tasks
required to achieve its objectives.
• In simple terms "Plan, Do, Check,
Act".
PAS 55
Four Key Elements to a
Management System
Organization Context and Leadership
Planning and Implementation
Information Accuracy and Availability
Consistency and Continuous Improvement
An example from Australia
GFMAM 39 Subjects
Why is this standard important?
• Moves asset management from a
performance focus to a value focus
• Requires a systems level view of
assets across their lifecycle
• Recognizes strong external economic
and social drivers for asset
management
• Recognizes new safety, security,
energy and environmental concerns
* Adapted from Thomas W. Smith, University of Wisconsin
Adapted from the
Asset Leadership Network’s EO Working Group
THE FOUR PILLARS OF ASSET
MANAGEMENT SUCCESS
Value
Alignment
Leadership
Assurance
Pillar 1 - Value
Value - Assets exist to provide value to the organization and its
stakeholders throughout their life cycle. Organizations shall
accomplish this by:
• Expanding awareness and understanding of asset
management by recognition and use of voluntary consensus
standards.
• Improving internal controls, effective and efficient
operations, reliable reporting and compliance to laws and
regulations
• Addressing public safety and concerns
• Eliminating unnecessary expenditures
• Improving asset accountability and visibility
• Adopting and establishing asset management systems and
practices in organizations that lack them.
• Continuously improving asset management best practices
according to the organization
Pillar 2 - Alignment
• Expeditiously align and right size the
regulatory process to enable entities to
establish an asset management system
that enables the optimum value from its
assets to support its mission
• Asset management translates the
organizational objectives into technical
and financial decisions, plans and
activities
Pillar 3 - Leadership
Leadership – Leadership and workplace culture are determinants of
realization of value. Organization Executive Management shall provide
the leadership and demonstrate integrity in their decision making
processes by establishing a culture that maximizes the value of asset
management by:
• Clearly defining roles and responsibilities
• Requiring accountability and stewardship of assets across their
organization
• Ensuring that employees are aware, competent and empowered
• Consulting with stakeholders
• Establishing performance standards to assure asset management
supports achievement of organizational objectives.
• Establish a senior asset management officer, organizational
structure and provide adequate resources to execute the asset
management plan.
Pillar 4 - Assurance
Asset management provides assurance that assets will fulfill their
required purpose. This includes developing and implementing
lifecycle processes that connect their required purposes and
performance of the assets to the mission objectives.
• Implementing the process for monitoring and continual
improvement
• Providing the necessary resources and competent personnel for
demonstration of assurance by undertaking asset management
activities and operating the AM system
• Improved internal controls
• Demonstrated adherence to your AM plan
• Accountability and visibility of assets
• Identification and correction of process deficiencies
• Organizations shall develop AM plans with annual performance
metrics demonstrating value realization from previous budget
appropriations as part of the budget process
WHAT DOES THIS HAVE TO DO WITH
PROPERTY MANAGEMENT?
Look Familiar?
FAR 52.245-1(f)(1)
ASTM E53
FAR 52.245-1(b)(1)
(Contractor Plans and
Systems)
52.245-1(b)(1)
26
November 15, 2012
… the Contractor shall initiate and
maintain the processes, systems,
procedures, records, and methodologies
necessary for effective control of
Government property … (and) may
employ customary commercial practices,
voluntary consensus standards, or
industry-leading practices and standards
that provide effective and efficient
Government property management that
are necessary and appropriate …
Property Systems and Contract Compliance
FAR “10 Subjects”
As defined in FAR 52.245-1(f)(1)
•
•
•
•
•
27
November 15, 2012
Acquisition
Receipt
Records
Physical Inventory
Subcontractor
Control
• Reports
• Relief of
Stewardship
• Utilization
• Maintenance
• Property Closeout
FAR 52.245-1 (b) (4)
The contractor shall establish and
maintain procedures necessary to
assess its property management system
effectiveness and shall perform periodic
internal reviews, surveillances, self
assessments, or audits.
Ready for ISO 55000
FAR 52.245-1(f)(1)
ASTM E53
FAR 52.245-1(b)(1)
(Contractor Plans and
Systems)
The
Organization
Improvement
Performance
Evaluation
Leadership
ISO
55001
Structure
Operation
Support
Plans
Deliver the Four Pillars
Value
Alignment
Leadership
Assurance
Up on Main Street
(or maybe you’re Ashton Kutcher?)
Thank you for attending!
I hope you had a very valuable NES this year!
FINAL THOUGHTS AND QUESTIONS
Robert Kaehler
robert.kaehler@ascotssociates.com
800-930-0901 x201
CONTACT INFORMATION