day 1 2a what can lg learn from iso55001 - travis

ISO 55001 : 2014ASSET MANAGEMENT SYSTEM

What can Local Government learn from ISO 55001?

What is ISO 55001?

• Management System for managing assets• “What to do” NOT “How to do it”• Can be applied to any Assets, not just built assets• The organisation determines scope - which assets?• Asset lifecycle approach• Strong focus on risk management

Council Management Systems

Context and Interdependencies

Asset Management

System

Strategic Management

System

Financial Management

System

Risk Management

System

Environmental Management

System

Information Management

System

Quality Management

System

Legal Management

System

Human Resource

Management System

Health & Safety Management

System

Application

AlignmentOrganisation Objectives

Operations and Physical Works

Functional Services

Functional Services

Council Asset Management System

ASSET DEVELOPMENT

TOP MANAGEMENT

ASSET MANAGEMENT (WHOLE OF LIFE)

OPERATIONS / MAINTENANCE

Condition / performance / riskForward works program / valuation

PLANNING

Assess asset related business needsIdentify options (asset / non‐asset)

Option analysisPlan agreed

ACQUISITION

New assetsAsset commissioning

Asset registerAsset management system

DISPOSAL

RetirementRenewal (replace/refurbish)Residual valueRedeployment

Asset Outcome Review and Monitoring

DESIGN

Assess asset related business needsIdentify options (asset / non‐asset)

Option analysisPlan agreed

CONSTRUCTION

New assetsAsset commissioning

Asset registerAsset management system

BUSINESS PLAN

Business strategiesAsset management policy

Level of service requirements

ORGANISATIONALOBJECTIVES

Business outcomesBusiness sustainability

FUNCTIONAL SERVICES

Finance, HR, Communication, SMS, EMS, QMS

Council Asset Management System

ASSET DEVELOPMENT

TOP MANAGEMENT

ASSET MANAGEMENT (WHOLE OF LIFE)

OPERATIONS / MAINTENANCE

Condition / performance / riskForward works program / valuation

PLANNING

Assess asset related business needsIdentify options (asset / non‐asset)

Option analysisPlan agreed

ACQUISITION

New assetsAsset commissioning

Asset registerAsset management system

DISPOSAL

RetirementRenewal (replace/refurbish)Residual valueRedeployment

Asset Outcome Review and Monitoring

DESIGN

Assess asset related business needsIdentify options (asset / non‐asset)

Option analysisPlan agreed

CONSTRUCTION

New assetsAsset commissioning

Asset registerAsset management system

BUSINESS PLAN

Business strategiesAsset management policy

Level of service requirements

ORGANISATIONALOBJECTIVES

Business outcomesBusiness sustainability

FUNCTIONAL SERVICES

Finance, HR, Communication, SMS, EMS, QMS

ISO 55001

Key Elements to an AMS

ASSET MANAGEMENT PLANNING

ASSET MANAGEMENT IMPLEMENTATION

STRATEGIC ASSET MANAGEMENT

ORGANISATIONAL OBJECTIVES

ASSET MANAGEMENTPOLICY

STANDARD OPERATING PROCEDURES

ASSET MANAGEMENT PLAN

ASSET PORTFOLIO

PERFORMANCE EVALUATION / IMPROVEMENTS

ORGANISATIONAL CONTEXT & EXTERNAL 

STAKEHOLDERS

STRATEGIC ASSET MANAGEMENT PLAN

Asset Management System

Asset Management Resources

Asset Management Enablers

Asset Management Service Levels

CostPerformance Risk

ORGANISATION OBJECTIVES

People Processes Technology

AM OBJECTIVES

Planning Process

Assets Funding Works

Fundamentals

Value

Alignment

Leadership

AssuranceLEADERSHIPGovernanceAsset management policy / strategyRoles / responsibilitiesResources

ALIGNMENTBusiness objectives

People / processes / outcomesLevel of service definition / achievement

Asset management culture

ASSURANCEPerformance monitoring / actionsForecasting future condition / costs

Risk managementReliability / robustness

VALUEValuationsFinancial returnEnd user / community satisfactionSocial benefit

ISO 55001 Fundamentals

Fundamentals

VALUE• Components make up assets• Assets deliver services• Services are valued by the community

LEADERSHIP

ALIGNMENT

ASSURANCE

VALUE

ISO 55001 Fundamentals

Fundamentals

ALIGNMENT• Strategic Objectives Asset Outcomes• Asset Outcomes Levels of Service• Levels of Service Assets• Assets Asset Preservation• Asset Preservation Physical Works

LEADERSHIP

ALIGNMENT

ASSURANCE

VALUE

ISO 55001 Fundamentals

Fundamentals

ASSURANCE• Competency• ‘Live’ Asset Management System• Informed Decisions• Sustainability (LOS = COS)

LEADERSHIP

ALIGNMENT

ASSURANCE

VALUE

ISO 55001 Fundamentals

Fundamentals

LEADERSHIP• Structure (Executive Operations Staff)• Planning Instruments (Policy, SAMP, AMP)• Corporate Management Systems• Improvements

LEADERSHIP

ALIGNMENT

ASSURANCE

VALUE

ISO 55001 Fundamentals

A Business Approach

The business of providing asset derived services to the community

• Balancing expectation with cost

Investment Decision Making

The ISO 55001 Standard

1 Standard, 7 Sections, 160+ Requirements

Required Outcomes

• Organisations will need to prove that:– They are ISO 55001 capable– The required documentation and a live AMS is in place

• Evidence and Demonstration

• Assessment/Audit Methods– Documentation, Observations– Discussions– Culture

Alignment and Certification

Alignment (partial compliance)• Complying with some requirements• Rank Importance to Organisation [L/M/H]• Assess effort (& cost)• Assess Value for Effort (VFE)

Certification (full compliance)• 100% compliance

Alignment or Certification ?

Deciding Factors?

Alignment Certification

Value to organisation High HighCost to organisation $ $$‘Keeping it Live’ Self Certification BodyStakeholder standing Low High

Maturity Assessment Process

• Standardised assessment method• Assessors judgement

4 Organisational Context

4.1 Understanding the organisation and its context

Does the organisation understand the organisation and its context? Artifact Impact Compl Prog Part Nil Priority Notes

Has the organisation determined the relevant external  and internal  issues relevant to its purpose and that affect its ability to achieve intended outcomes?

Business Plan

M X 3 refer Business Plan

Are the AM Objectives, within the SAMP, aligned to and consistent with organisational objectives? SAMP H X 1 AM Objectives need to be developed

4.2 Understanding the needs and expectations of stakeholders

Does the organisation understand the needs and expectations of stakeholders? Artifact Impact Compl Prog Part Nil Priority Notes

Has the organisation determined the stakeholders that are relevant to its AMS? M X 3refer 20 Year Community Plannot clearly defined

Has the organisation determined the requirements and expectations of stakeholders with respect to AM? L X 3 refer 20 Year Community Plan

Has the organisation determined the criteria for AM decision making? H X 1 not clearly defined

Has the organisation determined the stakeholder requirements for recording and reporting financialand non‐financial information relevant to AM?

L X 3 no documented evidence

SAMP

AMS Maturity Assessment

This diagram is sourced from Opus International Consultants

Typical Asset Classes

• Water• Wastewater• Stormwater• Solid-waste• Transport• Open spaces

• Coastal assets• ICT• Property• Fleet• Cultural assets

Maturity Assessment Results – All Asset Classes

• Leadership (good)• Planning (update SAMP)• Operation (update AMP/SOP)• Performance evaluation (risk/audit)

Maturity Assessment Results – All Asset Classes

• Leadership (good)• Planning & Operation (update SAMP/AMP/SOP)• Performance evaluation (risk/audit process)

Maturity Assessment Results – All Asset Classes

• No Priority 1• Organisational Context (SAMP)• Planning (AMP)

Maturity Assessment Results – Fleet (Enabling Service)

• Organisational Context (SAMP)• Planning (SAMP + AMP)• Performance (process?)

Maturity Assessment Recommendations

KEEP THE AMS ‘LIVE’

Maturity Assessment Recommendations

Benefits of ISO 55001 to Councils

Benefits Community sustainability and confidence Improved financial performance and asset investment

decisions Managed risk and opportunities for improvement Improved services and outputs Demonstrated social responsibility and enhanced reputation Validation and demonstrated compliance Improved organisational sustainability /efficiency

/effectiveness Promotes cultural change

Conclusion

ISO 55001 committed Councils generally have:

• An advocate and drive for improvement.• High level of staff engagement and competence.• Excellent AM culture across the organisation.• Excellent process of community engagement.• Process for AM development.• Found the Standard to reinvigorate staff and the AMS.• Better integrate the Council functions.