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    ISO 55000: A Layman's Guide
    ISO 55000: A Layman's Guide
    ISO 55000: A Layman's Guide
    Ebook74 pages1 hour

    ISO 55000: A Layman's Guide

    By James V. Reyes-Picknell

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    About this ebook

    Asset Management involves extracting value for the owners and users of physical assets throughout their entire life cycle. Decisions made in design impact on the performance, operability, reliability, and maintainability of physical assets. Get it wrong and life cycle costs can be high. Making changes later in the asset life cycle, say after it is built, or after it has been operating for some time, is difficult and costly, often impractical. Many risks arise from failures of our physical assets resulting in consequences that can injure or kill people, harm the environment, and create substantial business losses. Having a well-designed reliability program based on knowledge of how things fail and what consequences they give rise to, can substantially reduce and mitigate those risks. 

     

    Good Asset Management entails a number of activities including demand forecasting, preliminary design, detailed design, acquisition, construction, installation, commissioning, operating, maintaining, modifying, retiring, and disposal of the assets. Most of these activities are managed by different groups, often quite independent of each other, yet having substantial impacts on each others' success. With good Asset Management, we bring together a holistic perspective on managing those assets that reduces our risks, and provides value, however we see it, and at the right cost. 

    LanguageEnglish
    PublisherConscious Asset
    Release dateJul 6, 2020
    ISBN9781393789505
    ISO 55000: A Layman's Guide
    Author

    James V. Reyes-Picknell

    James Reyes-Picknell is the best-selling author of "Uptime - Strategies for Excellence in Maintenance Management" (2015), “Reliability Centered Maintenance – Reengineered” (2017), and “Paying Your Way” (2020). He is a Mechanical Engineer (University of Toronto 1977) with over 43 years working in Reliability, Maintenance and Asset Management. James is widely regarded as a subject matter expert in ensuring the delivery of value from physical assets. His experience spans a wide range of industries, mostly in the private sector, many in natural resources, all dependent on physical assets for their success. James’ career includes naval service (Canada), petrochemicals, aerospace, shipbuilding, pulp and paper, mining, oil and gas, manufacturing, gas and electric utilities, project management, software implementation, management consulting and training delivery. James is a professional engineer (PEng), certified management consultant (CMC), maintenance management professional (MMP), certified asset management assessor (CAMA) and certified blockchain professional (CBPro). He is the 2016 recipient of Canada’s prestigious Serio Guy Award for outstanding contributions to the profession.

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      Book preview

      ISO 55000 - James V. Reyes-Picknell

      Introduction

      What is Asset Management?

      Asset Management is a term with several meanings depending on who you are speaking with.

      Financial: In the financial world, the term refers to the management of financial assets of all sorts. It includes bonds, stocks, derivatives, funds, etc. While some of those represent hard assets in the physical sense, not all do. In general, this is not the subject that we are speaking about here.

      Public Infrastructure: In the public sector we have various levels of government: federal, provincial / state, and municipal that all look after physical assets on our behalf as citizens. These assets include roads, bridges, water, storm water and sewage systems, treatment plants, schools, government buildings, sidewalks, traffic signal systems, airports, port facilities, border facilities, museums, military bases, etc. Management of these assets is called asset management. These assets tend to be long lived and heavily used. They can be repaired or restored or simply replaced when beyond useful life. In many cases, maintenance tends to be carried out reactively – when things fail or deteriorate to a point where complaints arise.

      Asset management in this sector often looks at the forecasting and allocation of funding for those activities. The activities (replacement, building, maintenance, etc.) are often carried out by different groups or departments – roads look after roads and traffic signals, parks and recreation looks after parks and playgrounds, transport looks after airports, etc.

      In the public sector there is a mandate to provide these services at a cost that doesn’t waste taxpayers’ dollars but also to improve / sustain our standard of living. While some of these services are now being managed on a break even basis with user fees, there is no profit motive driving the public sector performance. Good financial management is often seen as keeping costs down and hence the tendency of the public sector to buy things cheaply, regardless of their long term operating and maintenance cost implications. Standard life cycle costing methods, while theoretically dealing with this, fail to deal effectively with the value delivered by assets over the long term. Also, funding is approved by elected officials who often have agendas that do not match those of the asset managers. We can see this all over the world where public infrastructure is often left to deteriorate to a poor state before action is taken. It’s not often bad action on the part of the asset managers either – often it’s the funding that is directed elsewhere more likely to garner votes. Infrastructure maintenance just isn’t all that sexy in the public eye.

      Despite the political motivations of those who hold the purse strings, public sector managers tend to be a dedicated group and very sensitive to the triple bottom line – social, environmental (or ecological) and financial. Here the financial component is concerned with costs, not profits. The goal is to move towards and enhanced quality of life, but do so at low cost.

      Private Infrastructure: Electricity, gas, telephone service, cell phone service, entertainment / telecommunications services, railroads and sometimes even port and airports are also part of our infrastructure. The only thing that distinguishes them from public infrastructure is ownership and operation, which in this case is usually in the private sector. In some cases, public infrastructure has been turned over to the private sector and regulated – often heavily. Electric utilities are a common and very visible example of this. This tends to motivate somewhat different behavior than found in the public sector.

      Like public infrastructure these networks and services are provided through physical assets that usually have a long life. Managing these is often carried out much like it would be if it the assets were in the public sector, albeit with different accounting rules and different motivation. Regulatory requirements often drive a good deal of what is done in this sector. For instance, electric utilities are often responsible for keeping rates down and their rates must be approved by some regulatory body (often after a long, tedious and very expensive process). Funding formulae will drive behavior while the private sector owners will maintain a focus on profits, despite the heavily constrained environment.

      Depending on the funding formulae, this sector can be heavily influenced to behave in ways that may seem odd. For instance, if rates depend heavily on capital investment, the utility will be encouraged to build and

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