This is just a summary – there’s a full list of the changes on our website
This article was updated May 2017
The context – asset management challenges
All asset-intensive organisations are faced with a number of challenges. Regulators, customers, and other stakeholders have increasing needs and expectations. Capital expenditure has to be justified by increasingly robust and well-evidenced business plans. In most cases, service levels and asset system resilience have to be managed in a context where the asset portfolio includes ageing and deteriorating assets.
Organisations in most sectors have responded to these challenges over the years by adopting increasingly sophisticated approaches to asset management. In recent years this process has accelerated, with wide adoption of increasingly advanced asset management systems and risk-based frameworks to promote the optimised management of assets. PAS 55 and lately ISO 55001 have become the de-facto international models for good asset management, often integrated with powerful analytical, planning and optimization techniques.
A brief history of the standards
The UK Institute of Asset Management (IAM), together with a range of collaborators and stakeholders, developed a “publicly available specification” for the “optimized management of physical infrastructure assets” – PAS 55. This was published in 2004, and subsequently updated in 2008 with a slightly wider scope, now referring to “optimized management of physical assets”. PAS 55 was widely adopted in many sectors internationally as an accepted standard for asset management. The International Standards Organisation (ISO) published the ISO 5500 series in 2014. This has now replaced PAS 55. All of our clients have now successfully made the transition to ISO 55001, without any significant problems.
The ISO 55000 family
The international standard for asset management is actually a set of three standards, each one serving a distinct purpose:
ISO 55000: Asset management – Overview, principles and terminology.
This covers the scope of the standard, asset management principles and various terms and definitions (some of which are changed or new).
ISO 55001: Asset management – Management systems – requirements.
This specifies the requirements for the establishment, implementation, maintenance and improvement of a management system for asset management.
ISO 55002: Asset management – Management systems – Guidelines for the application of ISO 55001.
This provides useful guidance for the application of an asset management system in accordance with the requirements of ISO55001.
The structure is a bit different
ISO 55001 standard was one of the first to be developed under the new ISO “Annex SL” protocol. All ISO management system standards are or will be drafted and updated under a “template” that consists of 8 clauses and 4 appendices that provide a “high level structure”, plus shared terms and definitions and actual shared clause titles and text. This is quite useful for organisations that use multiple management system models, such as environment, health & safety, quality and asset management. It helps with integration, a common vocabulary and streamlined systems.
Asset management is…
ISO 55000 describes the benefits of adopting the standards: “… enables an organization to achieve its objectives through the effective and efficient management of its assets. The application of an asset management system provides assurance that these objectives can be achieved consistently and sustainably over time.”
It also defines asset management as: “coordinated activity of an organisation to realise value from assets”.
An asset is….
One significant area of change from PAS 55 is the definition of an asset. It’s now: “item, thing or entity that has potential or actual value to an organization”. So things have moved on a bit from limiting asset management to physical assets. The scope of ISO 55000 has a note that says it’s “… intended to be used for managing physical assets in particular, but it can also be applied to other asset types”.
And this means….
Now that an asset is an “Item, thing or entity that has potential or actual value to an organization”, it means you have to think about what items you want to include in your asset management system.
That “value to an organization” can be financial or non-financial and may vary between different organisations. This means that intangible assets such as know-how, supply-chain alliances, software and intellectual property can also be managed in a way that meets recognised asset management standards. You may need to think about how this affects the scope of your asset management system. There is also a requirement (in clause 4.3) to define the asset portfolio covered by the scope of the asset management system – so you may need to decide what’s in and what isn’t – maybe by a clear description or even reference to (hopefully pre-existing) asset registers, schedules or similar information.
The new ISO will support your organisation in continuous improvement
We often find in our work with asset-management clients that there are significant improvements that come from addressing important strategic, governance and management system issues. These appear to have been continued over from PAS 55 or added into the new ISO 55001. These include:
- Having a clear and consistent approach to linking the organisation plan and corporate objectives into asset management policy, objectives, strategy and plans, to give alignment into all operational activities
- Clear processes for stakeholder engagement and management of the inputs into decision making, consultation and communication
- Strategic planning and business case development, covering multiple time periods and scenarios
- Managing the linkages between required service levels, regulatory outputs, expenditures, optimized asset interventions and outcomes
- Asset life-cycle management and whole-life costing
- Risk and opportunity based decision making processes, using robust data and information
- Integrating outsourced activities to ensure effective management and the achievement of desired outcomes
- Realising the importance of leadership and support functions, including competence, communication and information management.
The 9 biggest changes from PAS 55 to ISO 55001
1 The scope of ISO 55001
PAS 55 was a specification for the optimized management of physical assets. The scope of ISO 55001 says (in Note 1) that it is intended to be used for managing physical assets in particular, but it can also be applied to other asset types. Also, the definition of an asset has changed – now it is “Item, thing or entity that has potential or actual value to an organization”. That value can be financial or non-financial and may vary between different organisations. This means that intangible assets such as software and intellectual property can also be managed in a way that meets recognised asset management standards. You may need to review how this affects the scope of your asset management system. There is also a requirement in 4.3 to define the asset portfolio covered by the scope of the asset management system – so you will need to decide what’s in and what isn’t – maybe by reference to asset registers or similar information
2 Context of the organization
Identify the internal and external issues. Asset management objectives have to be aligned with the organizational objectives.
3 Stakeholder needs and expectations
Identify stakeholders and their expectations and requirements. Identify criteria for AM decision making. Identify stakeholder requirements for recording and reporting AM information.
4 Asset management objectives
Address stakeholders requirements and other requirements as in 4.1, 4.2. Ensure alignment with organizational objectives, AM Policy. Objectives must be established using AM decision-making criteria.
5 Planning to achieve objectives
Determine and document methods and criteria for decision making, and processes and methods to be used for asset life-cycle management.
6 Operational planning and control
More focus on process criteria, control, assurance and risk handling.
Requirement to assess associated risks and to monitor performance.
8 Monitoring, measurement, analysis and evaluation
Three specific AM areas to evaluate and report on. Cover what, how and when. Includes risk management reporting and stakeholders reporting requirements as in 4.2
9 Management review
Changes to the required topics, including risk/opportunity profile
Please refer to the ISO 55001 for detailed requirements. We can advise you on what these mean. Just leave a comment, or contact us on our website.
Check out our website for a full list of all the changes