In 2014 new international ISO standards series 55000 on asset management have been published. Development of these standards is aimed at improvement of financial results, optimization of investment decision-making, risks manageability, development sustainability, improvement of the organizations’ performance effectiveness. Development of the standards is based on Technical Specification PAS 55 for the optimized management of physical assets, as well as best asset management practices.
The series includes three standards determining bases, terminology, requirements and recommendations on asset management:
1. ISO 55000:2014 Asset management – Overview, principles and terminology
2. ISO 55001:2014 Asset management – Management systems-Requirements
3. ISO 55002:2014 Asset management – Management systems-Guidelines on the application of ISO 55001.
“Asset” is defined as an item, thing or entity that has potential or actual value to an organization. In compliance with ISO standards series 55000, asset management provides for balancing of costs, opportunities, risks and required asset performance.
Asset management system is used by the organization for management, coordination and control of asset management arrangements. It ensures an improved risk management and guarantees asset management objectives’ achievement.
- Determines requirements for development, implementation, maintenance and improvement of asset management system,
- Is designed in particular for material or physical assets management (capital assets), but can also be applied to other types of assets,
- Can be used by any organization of any type; and the organization itself determines to which of its assets this standard will apply.
The standards target audience is any organization (enterprise) possessing assets and interested in the realization of these assets’ value, i.e. in their management (at all stages of their life cycle – from design, procurement, construction and commissioning up to use, operation, modernization and/or utilization).
The standards are designed for application, first of all, by:
- Those who want to improve realization of the organization values from its assets;
- Those involved in the development, implementation, maintenance and improvement of asset management system;
- Those conducting arrangements on asset management and managing service providers on asset management;
- Internal and external stakeholders, wanting to assess the organization’s ability to comply with statutory requirements, requirements of regulating bodies and contractual requirements, as well as the organization’s own requirements.
Stakeholders by the example of physical assets:
- Owners of the enterprises, as performance and safety of physical assets determines the effect of their economic activity.
- Management of the organization, as its area of responsibility is the organization of economic, efficient and safe asset use.
- Consumers, as asset portfolio contents and its technical condition determine product and service quality.
- The Government, as due to certification system obtains asset management quality influence tool.
- All of the abovementioned persons as a whole, as well as all employees of the organizations, along with the population of surrounding territories, interested in physical assets to be safe and not to contaminate the environment.
Asset management involves many aspects of the organization’s activity, including quality management, environmental management, energy management, financial management, management of personnel, software engineering, maintenance, etc. One of the factors of successful asset management is integration capability of asset management processes, arrangements and data with other functions of the organization.
Thus, the requirements of ISO 55001 can be implemented in addition to the requirements of ISO 9001, ISO 14001, ISO 50001, OHSAS 18001 and the requirements of other standards. This allows to reduce efforts and costs related to development and maintenance of asset management system, improves integration of various aspects of the activity and coordination of the organization structural subdivisions’ activity. Apart from cost reduction, this integrated approach reduces risks and facilitates recognition of each new management system.
Russian Register offers integrated management system certification for compliance with several standards at the same time – this allows to minimize costs of certification and receive a more integrated assessment of management system.
BENEFITS FROM IMPLEMENTATION AND CERTIFICATION
Benefits from asset management system implementation and certification include:
- improvement of financial indicators: return of investments with asset value maintenance, without loss of realization of short- and long-term objectives of the organization.
- investment decision-making in respect of assets based on objective information: allows the organization to improve its investment decisions and reach an efficient balance between costs, risks, opportunities and performance;
- managed risk: reduction of financial losses, improvement of health and safety, reputation, minimization of social and environmental impact can ensure the reduction of financial obligations such as insurance, penalties and fines;
- service and performance improvement: ensures that efficient asset use can lead to service and/or product quality improvement, which comply with or exceed client and stakeholder expectations;
- demonstration of social responsibility: improvement of the organization’s opportunities e.g. to reduce greenhouse gas emissions, conserve resources and adapt to climate changes, allows to demonstrate social responsibility and compliance with business conduction and management ethics;
- demonstration of compliance: open compliance with statutory, legislative and normative requirements in combination with conformity to management standards, asset management policies and processes ensure demonstration of compliance;
- improvement of reputation: by means of increase of customer satisfaction, stakeholder awareness and trust;
- increase of the organization’s sustainability: efficiently managed short- and long-term consequences, costs and performance can improve the sustainability of the organization’s operations;
- improvement of efficiency and effectiveness: analysis and improvement of processes, procedures and effectiveness of asset use can improve efficiency and effectiveness, and allow the achievement of the organization’s objectives.