Extending the Benefits Lifecycle: ISO 55000 & Asset Management

Benefits Summit 25th June 2015

JOHN HEATHCOTE June 2015

ISO 55000 a focus on benefit delivery

APM Benefits Summit, June 2015London

ISO 55000. Quality Assurance

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ISO 55000

ISO 55000 description>ISO 55001 is the requirements specification for an integrated, effective management system for asset management.

Note: 55001 defines requirements for a management system, in the same way as ISO 9001 specifies a quality management system, and ISO 14001 covers an environmental management system. ISO 55001 is not, therefore, a specification for an asset information management system (sometimes called "enterprise asset management" system). Such software systems are, however, recognised to be useful aids ('enablers') for good asset management.

ISO 55000 Defines asset management as..

..the "coordinated activity of an organization to realize value from assets"

In turn, Assets are defined as follows: "An asset is an item, thing or entity that has potential or actual value to an organization".

This is deliberately wider than physical assets but these form an important focus for more organizations.(NB there are important qualifying Notes to these definitions, which are set out in ISO 55000).

ISO 55000, notes: facilitating better benefit cases• Asset Management involves the balancing of costs, opportunities and risks against the

desired performance of assets, to achieve the organizational objectives. This balancing might need to be considered over different timeframes.

• Asset management also enables an organization to examine the need for, and performance of, assets and asset systems at different levels. Additionally, it enables the application of analytical approaches towards managing an asset over the different stages of its life cycle (which can start with the conception of the need for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).

• Asset Management is the art and science of making the right decisions and optimising the delivery of value. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.

A power station, maintenance dept.

Power’s Programme exampleProjects Objectives Benefits

Spare Generator transformer Increased availability & risk capacity Profit, Capacity to sell to peaks!

Maintenance Shut Down Assurance, Certification, Reliability, Risk Mitigation

Regulation, Efficiency

Sulphate Injection Burn more products without pollution/emission Profit/ Regulation

Biomass fuel project CO2 legislation, More fuel PR/Regulation

Variable speed drives Upgrade plant, better efficiency Profit, Capacity to meet peaks.

Dynamic Classifier Fire efficiency, Pet coke & Bio fuel

Maintenance & Ops restructuring Work patterns flexibility Safety, Efficiency.

Boosted over air fire Emission compliance Cheaper products

Pet-Coke Substitute Cheaper fuel Profit

A business/value case,

• Defining value.• In Strategic terms

A value management process outline• Information: avoid the availability error• Problem definition: Root cause analysis• Option generation: suspension of judgement, avoiding first good

(tried & tested fallbacks) error.• Review with risks,• Recommend: Value function Benefit/£ resource (& risks to those

estimates/assumptions)

A progressive cavity pump example

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A Business/Value case: Progressive Cavity Pumps

Capex Cost of the SAME duty...0123456789

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PC Pumps Whole Life Cost Comparison.

• Make the best capital purchase decision.

• Take the Capital Saving!

• But……..

PC Pumps WLC Comparison

Capex Spares List0123456789

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Supplier 2

• Comparison becomes more difficult when we consider the spares list.

• But neither cost refers to the VALUE of the Investment!!!!!!

The Whole Value Chain

• Adding value means……..Taking a whole chain viewpoint. CAPEX

10%

Energy30%

Maintenance60%

WLCosts

PC Pumps Whole Life Cost Comparison.

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Pump No. 1 Pump No. 2

It’s Easier to compare plant performance, than to find the existing OPEX from the BU !

Pump Comparison ROI/Payback

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A programme of benefits

A programme of benefits.

It’s all in the business [benefit, value]case:Some examples

• Some examples, from the table or the floor.....

• The importance of benefits in all this,

• The importance of the programme ‘view’