Brush Up On ISO-Compliant Asset Management

According to experts at Life Cycle Engineering (LCE.com), the power of an asset-management system comes from the effectiveness of what they call “asset-management capabilities.” These are the processes, procedures, and knowledge that, when applied effectively across all stages of the asset life cycle, will provide the optimal return on investment. Image courtesy Life Cycle Engineering

Despite increased adoption of the ISO 55000 Standard for Asset Management released in 2014, there may still be some confusion around the development of ISO-compliant asset-management systems.

To put the issue into perspective, Rick Wheeler of Life Cycle Engineering, Charleston, SC (LCE.com), recapped the scope of the Standard with regard to these systems and why having a strong asset-management plan is crucial. In the process, he attempted to dispel the myth that a CMMS (computerized maintenance management software) system can develop an asset-management system. It can’t.

What and Why?

An asset-management system defines how the assets will be managed, across their life cycle, to meet what ISO calls “stakeholder requirements.” As explained in the ISO 55000 standard, these activities are documented in the asset-management policy, strategy, objectives, and asset-manangement plans (AMP).

According to Wheeler, AMPs are where the rubber really meets the road. They provide a roadmap for achieving value from physical assets by optimizing cost, risk, and performance across the asset life cycle. These plans define what you need to do to accomplish asset-management objectives, which translate your organization’s strategic intent.

The most important part of an AMP, as defined by ISO 55000, is the “Asset Lifecycle Management Section,” which summarizes how assets will be managed and operated, at an agreed-upon service level, while optimizing TCO (total cost of ownership), at an appropriate level of risk. The subsections illustrate how comprehensive AMPs should be. Yours should include the following components.

AMP overview:

• link to corporate objectives
• stakeholders and their requirements
• relationship with other plans.

Levels of service required (present and future)

Current condition (asset health)

Asset lifecycle management:

• risk-management plan
• operating plan
• maintenance plan
• capital and recapitalization plan.

Financial summary

Continuous improvement.

Back to that Myth

As Wheeler noted, contrary to a widely held industry belief, adopting or re-implementing a new CMMS or EAM (enterprise asset management) system will not create an asset-management system. While software can—and must—support your site’s asset-management system, it doesn’t build the system for you.

“Developing a strong asset-management system,” he advised, “will strengthen your organization’s operations by driving the most value from your assets in a safe and cost-effective way. It’s worth investing the time, energy, and resources to do it the right way.” EP

Rick Wheeler is the executive director of Life Cycle Engineering’s Reliability Consulting Group, Charleston, SC. For more information on a variety of asset-management topics, email rwheeler@LCE.com or visit LCE.com.