3 1 brief intro to iso55000

8/11/2019 3 1 Brief Intro to ISO55000

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The Woodhouse Partnership Ltd 2014

ISO 55000 - What, Why and How

John WoodhouseManaging Director, TWPL

UK Expert Representative, ISO 55000 Development

Project Chairman, PAS 55 Development

February 2014

An introduction to the firstinternational standard for

asset management


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Your course leader

Summary CV

CEO and Managing Director, The Woodhouse Partnership Ltd since 1995 Founder, Fellow & Chair of Experts Panel, Institute of Asset Management UK Expert Representative, ISO PC251 developing ISO 55000

Project Director, BSI PAS 55 development

Development Director, IAM Competency Requirements Framework v1 Director, SALVO Project (Strategic Assets: Lifecycle Value Optimisation)

Member of UK Safety & Reliability Society for 30 years Author of Managing Industrial Risk, Publ. Chapman & Hall, 1993

Prior career with Shell (UK, Netherlands, Brunei, Norway) then seniormanagement (Director) role in Kvaerner Engineering UK

John Woodhouse MA, FIAM, MSaRS


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What is (good) Asset Management?

Sweating the assets?

Maintaining them?

Purchasing or creating the rightassets in the first place?


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Hierarchy of assets & systems

Corporate/OrganizationManagement

Manage Asset Portfolio

Manage Asset Systems/Networks

Manage individual Assets over their Life Cycles

Activitiesefficiency &effectiveness

System performance,cost & risk optimization

Capital investment optimizationand sustainability planning

Keeping stakeholders happy

System performance,cost & risk control

Portfolio investmentperformance & compliances

Typical priorities & values


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150 years gestation

19thCentury

Industrial revolution: specialisation of roles

but an Engineer was also a businessman, communicator & leader

20th Century

Vast improvements in technologyand efficiency

Increased specialisation: deeper but narrower knowledge

1970s onwards

Departmental silos and conflicting KPIs creating ineffectiveness

Slow realisation that the whole jigsaw puzzle needs re-assembly


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Earliest UK attempts

1970 UK Department of Industry established the Committee for Terotechnology(from Greek Terein' meaning to care for).

A combination of management, financial, engineering, building and other practices

applied to physical assets in pursuit of economic life cycle costs.Involves systematicapplication of engineering, financial, and management expertise in the assessment of the

lifecycleimpactof an acquisition (buildings, equipment, machines, plants, structures) on the revenues and

expenses of the acquiring organization. Practice of terotechnology is a continuous cycle that begins with thedesignand selectionof the required item, follows through with its installation, commissioning, operation, and

maintenanceuntil the item's removaland disposaland then restarts with its replacement.

1975 The committee published Terotechnology. An introduction to the managementof physical resources

1977 BSI BS3843 Guide to Terotechnology (the economic management of assets)Last updated in 1992, by British Institute of Managements

Asset Management Group


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Wake-up calls in N.Sea O&G

North Sea oil & gas

1stUK oil 1975 (Hamilton Bros)

BP Forties field started 1976

1stdecade: massive development

1980s production costs c.$15/barrel

1. Oil price crash1980 $40/bbl

1987 $10/bbl

Oil pricedrop

2. Piper Alpha disaster1988 167 died



The response

Piper Alpha - Cullen Report:

106 recommendations. By 1993all substantially implemented.

Included goal-based safety case forevery installation, and ALARPconcept.

1994 BP Mature ASsets Team (MAST)Given total responsibility for asset life cycle valueimprovement: achieved 20% cut in production costs(100 million) and 4-year life extension, deferring270 million of decommissioning costs.

1995 Shell Asset Management business model Defines company-wide AMPolicy Defines specific asset (business unit) Mandatefrom CEO

with decision-making authorities & budget freedoms Single point of accountability (Asset Holder) for delivering

asset life cycle value in line with business goals Establishes asset life cycle management plans (ARP) Creates culture of a small company with the resources of

a big one

1993 CRINE ProgrammePan-industry Cost Reduction in the New Erareport identified scope for radical efficiencyimprovement & tax reform.



The results

By 2001, offshore industryaccidents reduced by >75%

Asset systems uptime (5 platforms) Total operating cost per platform

By 2004, unit production costsreduced to c.$5/barrel



Meanwhile, down under

1984-7 South Australian public sector True cost of services and Cost and timing ofasset replacement reports (Dr Penny Burns) resulting in a first, brief, governmenttask force on Asset Management.

1988 Nick Greiner, new Premier of NSW, stated that government should run asefficiently as the private sector: first NSW Water Industry seminar on AssetManagement

1993 First NSW Public Sector Total Asset Management Manual

1995

New Zealand Asset Management

Support group (NAMS) established

2002 NAMS International InfrastructureManagement Manual published

With thanks to Dr Penny Burns AM History project



And in North America

1988 US National Council on Pubic Works Fragile Foundations report

1999

US DOT Asset Management Primer published

2000

ASTM Property Management Systems guidelines

2004 Canadian NRCC publishes first Municipal Infrastructure

Asset Managementguide

2009

PSAB 3150 requirement for public assets amortized valuationCanadian Asset Managers Network (CNAM) founded

With thanks to Tom Smith, Univ. Wisconsin



Capital Investment,Design & Projects

WORKADMIN

Preventive, Detective& Corrective WORK

Work programmeSCHEDULING

Data Collection

Inspection& CBMProblem/Oppty

INVESTIGATION

EVALUATIONof Solutions

CHANGEMgmt

$$

$$

$

CONTINUOUSIMPROVEMENT

cycle

Problem/OpptyIDENTIFICATION

Externalreporting

Operating &

MaintenanceStrategies

Asset Managementprocesses

Resource PLANNING& Work DEFINITION

Materials

RESOURCEADMIN

Labour



Critical systemic enablers

People factorso Structure & responsibilitieso Leadershipo Competencieso Cross-disciplinary teamwork

Risk managemento Asset criticality & risk registerso Asset health & deterioration mgmto Risk-based decision-making

Information managemento Single source of truth asset registero Data, information & knowledge management systemso Work & resource planning & management systems



First cross-industry standards

1994 Institute of Asset Management (IAM) founded

1995-99 Rapid growth - mostly in post-privatisation utilities(after initial easy efficiency gains, what next?)

2000

Established corporate platforms for Asset Management

debate, membership and Council

2002

IAM project started to document good assetmanagement practices:

25 organisations involved

BSI Publicly Available Specification template chosen2004 IAM/BSIPAS 55 published

Optimized management of physical assets

Part 1: Requirements specificationPart 2: Implementation guidance



Elements of PAS 55

4.3 Asset management strategy,objectives & plans4.3.1 Asset management strategy4.3.2 Asset management objectives4.3.3 Asset management plans4.3.4 Contingency planning

4.4 Asset management enablers &controls4.4.1 Structure, authority & responsibilities4.4.2 Outsourcing of asset management activities4.4.3 Training, awareness & competence4.4.4 Consultation, participation & communication4.4.5 Asset management system documentation4.4.6 Information management4.4.7 Risk management4.4.8 Legal & other requirements4.4.9 Management of change

4.6 Performance assessment &

improvement4.6.1 Performance & condition monitoring4.6.2 Investigation of asset-related failures,incidents & nonconformities4.6.3 Evaluation of compliance4.6.4 Audit4.6.5 Improvement actions4.6.6 Records

4.7 Management review

4.1 General requirements

4.2 Asset management policy

4.5 Implementation of asset management plans4.5.1 Life cycle activities4.5.2 Tools, facilities & equipment

Plan

Do

Check

Act

PAS 55:2008Management

System



BSI PAS 55:2008

2006 IAM maturity scale & assessment tool developed

2007 Industry regulator OFGEM made PAS55 compliance

a requirement for gas & electricity networks

2008: Major update: internationalise & broaden50 organisations15 industry sectors10 countries1300 suggestions!

2009: Spanish version

2011: French, Chinese, Russian, Dutch

& Portuguese versions

Now major international best seller: 2012 update or ISO?



ISO 55000 development

ISO PC251 committee:

Started in 2011 (BSI proposal, based on PAS 55)

30 participating countries + 14 observer status

Argentina (IRAM)Australia (SA)Belgium (NBN)Brazil (ABNT)Canada (SCC)

Chile (INN)China (SAC)

Colombia (ICONTEC)Czech Republic (UNMZ)Finland (SFS)France (AFNOR)

Germany (DIN)India (BIS)Ireland (NSAI)

Italy (UNI)

Japan (JISC)Korea, Republic of (KATS)Mexico (DGN)Netherlands (NEN)Norway (SN)

Peru (INDECOPI)Portugal (IPQ)

Russian Federation (GOST R)South Africa (SABS)Spain (AENOR)Sweden (SIS)

Switzerland (SNV)United Arab Emirates (ESMA)United Kingdom (BSI)

United States (ANSI)

Armenia (SARM)Austria (ASI)Costa Rica (INTECO)Denmark (DS)Hong Kong (ITCHKSAR)Hungary (MSZT)Iceland (IST)Iraq (COSQC)Israel (SII)Malaysia (DSM)Morocco (IMANOR)New Zealand (SNZ)Slovakia (SUTN)Thailand (TISI)

Observers



Development process

Publication10thJan 2014

Each meeting = 5 days durationFinal one (Calgary): 80 participants

Londonplanning

Nov 2010

Month

StageNWI

proposal



The resulting standards

ISO 55000 Overview, principles and keyterms in Asset Management

ISO 55001 Asset management: management

systems - requirements

ISO 55002 Guidance for implementation ofISO 55001

PlusISO 17021*part 5 Asset Management competency

requirements for auditors of ISO 55001

*Conformity assessment: requirements for bodies providing audit & certification of management systems

www.ISO55000.info


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Scope of management system

Corporate/OrganizationManagement

Manage Asset Portfolio

Manage Asset Systems/Networks

Manage individual Assets over their Life Cycles

AssetManagement

System

Activitiesefficiency &effectiveness

System performance,cost & risk optimization

Capital investment optimizationand sustainability planning

Managing stakeholder expectations

System performance,cost & risk control

Portfolio investmentperformance& compliances

Typical priorities & values


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ISO55001 requirements for management system

A t t f AM


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Asset ManagementResources, Processes,

Competencies,

& Technologies

Development Plan forAMcapabilities

Asset (life cycle)Management Plans

Asset ManagementObjectives &

Strategies

Asset Management Policy

Organization Strategic Plan

Renew/Dispose

Maintain

Utilize

Acquire/Create

Operation & Control ofLife Cycle Activities

A management system for AM

Cont

inualimprovement

Continualimprovement

Where arewe going:therefore

whatto do,whenand

why

Whodoes it,and how

Assetcapabilities

input tostrategies &

objectives

Deliverycapabilities

input tostrategies &

objectives

Continual improvementin AM processes &

capabilities


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ISO 55001 elements in PDCA layout

Lif l i i i l


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Life cycles: generic principles

Requires multi-disciplined teamworking De-siloing of the organisation and its culture

Decision-making and Key Performance Indicators to favourtotal business impact over not localised, short-term interests


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Institute of Asset Management

www.theIAM.org


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IAMs Maturity Scale (PAS 55)

PAS55

co

mpliance

good example answers

28elements

120questions

Mostly just beyond PAS55

C k JW B i


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Current work: JWs Bow-tie.

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Convergenceto a joined-up, managedsystem for asset management

Divergencebest appropriatepractices (context-dependent)

U i th b ti


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Using the bow-tie

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Developing Optimizing

0 1 2 3 4 5

IAM SAM t l d Q&A t


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IAM SAM tool and Q&A set

Good for simple self assessments & basic ISO 55001 gap analyses

Not so good for objective external reviews & business improvement planning

Not adequate for formal certification purposes

F l tifi ti


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Formal certification

Accredited certification authorities onlye.g. BSI, LR, DNV, BV

ISO 17021 audit process compliance

NEW:

ISO 17021-5 requirement for subject matter expertise inasset management

IAM & GFMAM role in defining adequacy of suchexpertise

BUT ISO 17021


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BUT ISO 17021 means

Certification assessors are not allowed toprovide any guidanceon how to close

the gaps. They also cannot have any relationshipwith any other provider of consultancy

services.


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TWPL Improvement planningAssessment

Life Cycle Costing

Projects & resource prioritisation

Major project delivery/completions

Minor projects evaluation & delivery

Mtce/Ops feedback into projects

Risk evaluation & management

NowNow I n 1 yearI n 1 year I n 3I n 1 year I n 3I n 3-5 year syear syear s

Projects & Investment

Maintenance processes

Supply chain processes

AM processes section

R d d l t


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Roadmap development

Existing corporategoals & objectives

AM teamworkshops

Assessment results

Quick (


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Effort&results

e.g. AM educationprogramme

e.g. LCC methodsadoption

e.g. Shared risk/reward alliancing

Sensitive linkage #1

Exploring a new topic during peakimplementation effort for another

Sensitive linkage #2Rolling out the next initiative

while stabilising/embedding the previous

Achieving sustained, cumulative success

Wh t i b i hi d b thi ?


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Scottish Power 10% reduction in capital expenditure

20% reduction in O&M costs

22% increase in plant availability

25% reduction in forced outages

Hong Kong MTR

Train operating costs reduced by 20%

Train reliability: MTBF risen from 1000 Km to 3500 Km between failures

-30% network total cost of ownership (Nuon, Netherlands)-30% maintenance cost & +10% system availability (Copper mine, Chile)A$11M/yearbudget savings (New South Wales government)

Case studies at: www.twpl.com/?page=CaseStudies

China Light & PowerICE, Costa Rica*

*Winner of 1st IAM Asset ManagementAchievements award 2013

What is being achieved by this?

PAS 55 Certified

Closing Summary


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Closing Summary

An Asset Management Systemis a framework of control,

directional alignment, cross-disciplinary collaboration,optimization and continual improvement. It is not a software tool.

ISO 55001 provides a very valuable structure but:

It is only defines what needs to be done; not how (context dependent)

It defines competent asset management; not best practice

Line of sight alignment is a vital starting point

Optimization of strategies & plans is complex but very high value

The people, risk & information enablers have profound impact,especially in sustainment of the system

Closing the loop is, perhaps, hardest of all initially, but providesthe self-motivating engine once started.

ISO 55001 is just a checklist: the real value is found in betterintegration & optimization, in de-siloing and providing greater

clarity of focus


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3 1 brief intro to iso55000

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