Delivering value with asset management supporting the ISO 55000 standard
There are many reasons why there’s an increasing demand for better asset management. When organizations raise the importance of risk, complexity, availability or cost of their corporate critical or capital assets, they often see a rise in interest by management to better maintain control and visibility of all these resources. In this new era of smart technologies such as mobile, cloud and analytics, there are more opportunities to collect, consolidate and analyze information about assets to help fine-tune performance. In addition, governments, regulatory bodies, shareholders and other key stakeholders have increased the pressure on organizations in both the public and private sectors to be able to find and track asset information, including availability, reliability, utilization and its actual locations. The higher the risk, or opportunity cost from not knowing where an asset is located or what condition the asset is in, the greater the incentive for management to implement a sophisticated asset management system.
More than ever—certainly in a multinational and complex organization structure—the need for a framework that includes all aspects of asset management clearly exists. Also, many asset-intensive industries are welcoming the initiative of an asset management standard and pushing their management to adopt the new ISO standard.
I am talking about ISO 55000, which was published in January of 2014 but already enjoys wide industry acceptance. Many industrial companies now use ISO 9000 for quality management and ISO 31000 for risk management, and they are welcoming the ISO 55000 standard for asset management.
According to ISO 55000, an asset is a “thing, an item or an entity that has actual or potential value.” Consider that these assets might include IBM Maximo data, your maintenance technicians and their knowledge and so on. ISO 55000 questions whether you are managing all of these as you would a physical asset and sees asset management as a coordinated set of activities to realize that value.
Certainly, asset management is not only about managing assets, but also about delivering real business value. Organizations do this by aligning all parties' understanding of the value and risk and then balancing that to the profile that’s been set.
The objective of the ISO 55000 asset management framework is “to optimize the delivery of performance of all physical assets. When talking about the value of implementing this asset management standard, the benefits are clear:
- Alignment of processes, resources and functional contributions, and creation of a transparent audit trail for what is done, when and why
- Better understanding and usage of data and information to provide informed and consistent decisions
- Improved financial planning (capital expenditure)
- Consistent, prioritized and auditable risk management (in conjunction with IS0 31000)
- Alignment and coordination of existing initiatives, including competency development
- Greater engagement of the workforce, from the "shop floor to the top floor,” including communications and cross-disciplinary teamwork
- Less-difficult audits
- More confidence at the shareholder level
- Improved reputation (better image) in the marketplace
IBM Maximo Asset Management software provides capabilities and functionalities that allow capital asset-intensive industries to leverage the implementation of this standard.
Using Maximo to support the ISO 55000 standard can clearly improve customer service, increase return on assets, enable greater compliance, boost asset performance and reduce risk—all in a short time period. It also provides better visibility and control of all required information to better align with the organization’s overall business goals. Combining the software with the standard can become a sustainable business strategy for operational excellence.
I have noticed a huge interest in ISO 55000 adoption in asset-intensive regulated industries such as process, utility, and food and beverage. In many industries, regulations are becoming complex while assets are more intelligent and interconnected. Implementing ISO 55000 optimizes the management of all business processes and the use of all assets.
For further discussion about asset management, please see this white paper: “Understanding the Impact and Value of Enterprise Asset Management.”