Asset management

About Asset Management

Asset management is a set of coordinated activities to realise value from assets. The organisation requires assets to achieve its objectives and to deliver its plans. The assets that are needed, and the way the assets are managed, will be influenced by several factors. These can be summarised as:

  • The nature and purpose of the organization
  • Its operating context
  • Its financial constraints and legal and regulatory requirements
  • The needs and expectations of the organisation and its stakeholders.

We need to consider these factors when we are establishing, implementing, maintaining and continually improving asset management. We have to ensure effective control and governance of assets so that we can realise value through managing risk and opportunity, in order to achieve the desired balance of cost, risk and performance.The legal and regulatory environment is increasingly challenging and the inherent and emergent risks from assets are continually changing. Asset management gives us a systematic and integrated way to turn the organization’s objectives into asset-related decisions, plans and activities, using a risk-based approach. 

Asset management is “Coordinated activity of an organization to realize value from assets”    (ISO55000:2014)

Note: Realisation of value will normally involve a balancing of costs, risks, opportunities and performance.

ISO 55001 Key concepts

The asset management system is used to direct, co-ordinate and control asset management activities.

It is developed using a risk-based approach and can provide increased risk control.

It provides assurance that asset management objectives are aligned to the organizational objectives and will be achieved consistently.

Other organizational factors are important and may not be formally included in the asset management system, including culture, motivation and behaviour. These may be managed as part of the overall management arrangements in a holistic and integrated way.

Asset management system

As part of the initial development of the asset management system, the organisation should decide how it is going to establish, implement, maintain and improve the system. The way this change is planned and systematically carried out will have a significant influence on how effectively the system becomes integrated and embedded as part of the overall governance and management of the organization. 

A good way to start is to carry out a review of the existing processes against the requirements of ISO 55001, in order to identify the areas that need to be developed to establish a compliant asset management system. The asset management system processes, activities and data should be integrated with other functions (e.g. safety, quality, environmental, risk, financial and human resources) to avoid duplication of work and data. We can help you with this process. Just click here to find out more.

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Benefits to your organisation

You can expect several benefits from implementing optimised life cycle asset management:

  • Enhanced corporate governance and risk management
  • Effective management of capital investment and maintenance programmes
  • Improved delivery of capital investment programmes
  • Increased efficiency and effectiveness of operation and maintenance of the assets
  • Stronger control and clearer relationships in an owner/operator or alliance contractual arrangements
  • Disciplined long-term planning with improved performance and availability
  • Robust decision making, planning and expenditure control with auditable information and risk inputs
  • Protection and enhancement of investor asset value and organisation reputation
  • Enhanced customer satisfaction as a result of effective performance and control of product or service processes
  • Improved environmental, health and safety and performance
  • Compliance with legal, regulatory and other requirements