Implementing ISO 55000 - 4th Annual Maintenance Kuwait ...maintenancekuwait.iqpc.ae/media/1004123/78177.pdf · Implementing ISO 55000 Translate Your Organization's Objectives Into

Implementing ISO 55000

Translate Your Organization's Objectives Into Technical and Financial Decisions, Plans and Activities

February 2016

Ahmed Hussein Ragab – ZADCO , UAE

Agenda

Aim of Asset Management

Evolution of ISO 55000

ISO 55000 Family of Standards

Alignment and Changes between PAS 55 and BS ISO

55000

The 7 Elements of ISO 55000

Strategic Asset Management Plan (SAMP)

Asset Contribution Model & Line of Sight

Asset Management Implementation Flowchart.

Success Stories from UAE


Maximizing return on

investment of physical

assets, while at the same

time operating safely and

in an environmentally

responsible manner is

now more critical than

ever for organizations

within the heavy process

industries.


Integrity Safety Maintenance

While many facilities can successfully achieve these goals

individually, oftentimes the efforts to maintain uptime, improve

safety, and ensure compliance lack alignment with each other.

As a result, facilities can waste precious time, funds and

resources accomplishing each effort individually.

Asset management—a gray area?

Source: Physical Asset Management with Introduction to ISO 55000 - Nicolas Anthony 2015

Asset management—a gray area?

Analysis is needed to get the best business solution

Business Activities and Asset Management

Source: Physical Asset Management with Introduction to ISO 55000 - Nicolas Anthony 2015

The Seven Questions of Asset Management

1. What do we own and where are they?

2. What are they worth?

Asset are more than just sunk depreciating costs

Assets can be competitive differentiators

3. What condition are they in?

4. What do I need to do to them?

5. When do I need to do it?

6. How much money will I need to invest?

7. How do we achieve sustainability?

Strategy Initial

Design

Detailed

Design

Build &

Commission

Steady State Operation Facility Maturity

9

Risk Mitigation Cost vs. Life Cycle Phases

Risk

Mitigation

Cost Saving Opportunities

As project decisions are made, saving opportunities

diminish, while risk mitigation costs escalate

It is more efficient to

mitigate risks early in the

project life cycle

Phases of Lifecycle Cost Commitment

Asset Management Standards

By implementing the comprehensive asset management

system as outlined in ISO 55000, facilities can experience

greater return on asset investment.

This presentation provides an overview of the new ISO

55000 family of standards, the objectives, the benefits and

the requirements facilities must follow to meet this

standard’s criteria.

Asset Management Standards Timeline

1975 1980 1985 1990 1995 2000 2005 2010

Fragile

Foundations US DOT Asset

Management

Primer

PAS 55

2008

PAS 55

2004

ISO

55000

EPA Statement of

Intent for Asset

Management

ASTM Property

Management Systems

National Asset Management

Steering Group established in NZ

IAM founded

Asset Management Standards

PAS 55: Line of Sight

BS ISO 55000 Standards for Asset

Management

Given the popularity of PAS 55, and after consultation

with industry and professional bodies around the world,

the specification was put forward in 2009 to the

International Standards Organization as the basis for a

new ISO standard for asset management.

This was approved and the resulting BS ISO 55000 family

of standards has been developed over three years.

The ISO 55000 series published in January 2014.

BS ISO 55000 Standards for Asset

Management

The ISO 55000 Family of Standards

Generally referred to as “ISO

55000,” this standard includes

three key chapters:

ISO 55000 – Asset Management –

Overview, principles and terminology


Management systems –

Requirements


Management systems – Guidelines

for the application of ISO 55001

Alignment and Changes between PAS 55

and BS ISO 55000

Alignment “Line of sight” of organizational objectives & asset management system

Whole cycle life cycle asset management planning and cross-disciplinary collaboration

Risk management and risk-based decision-making;

Integration and sustainability

Alignment and Changes between PAS 55

and BS ISO 55000

Changes Scope: The most significant change is the target scope of application for the BS ISO 55000 standards (all asset types). Applicable to all types and sizes of organization

Terminology. Core definitions are simplified and generalized in line with the broader scope.

Decision-making criteria: retained but are described differently

Risk management: The required steps for risk management are

reduced in BS ISO 55001, as such detail is provided in BS ISO 31000

Audits and documentation: The requirements for audited

and documented information have also been tightened in

BS ISO 55001.

The Benefits of Implementing an ISO 55000 -

Compliant Asset Management System

• Reduced planned and unplanned outages

• Increased/reliable capacity sales Increased Availability

• OT reduction

• Contractor reduction Reduced Labor Costs

• Reduced usage

• Reduced inventory Reduced Material Cost

• Safety and environmental Improved Regulatory

Compliance

• Planned and scheduled work Reduced Injuries

• Extended life cycle

• Fewer replacements Capital Project Avoidance

• Operations-owned reliability

• Institutionalized

Sustainable Culture Change

BS ISO 55000

ISO 55000 Overview,

principles and terminology

The CEO level

document

Principles and definitions

set the tone for the

other documents

21

BS ISO 55000 - Definitions

22

BS ISO 55000 - Relationships

BS ISO 55000 - Relationships

BS ISO 55001 – Requirements

25

ISO 55001:2014 specifies

requirements for an asset

management system

within the context of the

organization.

ISO 55001:2014 can be

applied to all types of

assets and by all types and

sizes of organizations.


Organization

Leadership

Planning

Support Operation

Performance Evaluation

Improvement

26 Elements of Asset Management System


Planning

Operation Performance

Evaluation

Improvement

27

Support

Organization


Planning


Evaluation

Improvement

28

Support

Organization

ISO 55001 – Section 4

Understanding the organization and its context

Aligning business strategy with Strategic Asset Management Plan (SAMP)

Understanding the needs and expectations of stakeholders

Determining the scope of the asset management system

Defining and Documenting the Asset Management System


Planning


Evaluation

Improvement

29

Support

Organization

Leadership


Leadership and commitment

Policy

Organizational roles,

responsibilities and authorities.


Planning


Evaluation

Improvement

30

Support

Organization

Planning


Actions to address risks and

opportunities for the asset

management system.

Asset management

objectives and planning to

achieve them.


Planning


Evaluation

Improvement

31

Support

Organization

Support


Resources

Competence

Awareness

Communication

Information requirements

Documented information


Planning


Evaluation

Improvement

32

Support

Organization

Operation


Operational planning and control.

Management of change

Outsourcing.


Planning


Evaluation

Improvement

33

Support

Organization Performance Evaluation


Monitoring, measurement,

analysis and evaluation

Internal audit

Management review


Planning


Evaluation

Improvement

34

Support

Organization

Improvement


Nonconformity and corrective action

Preventive action

Continual improvement

Typical Comprehensive Asset Management

Process, Depicting ISO 55001.


The four phases of strategic asset management planning are:

• Business Planning

• Risk Identification

• Scope Definition, and

• Design and Planning.

• Detailed understanding of what assets are currently held,

their value, future value, and costs associated with

maintaining them or disposing of them.

• Best manage your assets and deliver services as efficiently

as possible.


Employment

Advantage

Financial

Advantage

Community

Advantage

Market

Advantage Cheaper

Safer

Financial

Drivers

Image

Drivers

Organizational Context

Stakeholder Needs &

Expectations

Asset Management Objectives

Asset Management

Plan

Asset Management

Policy

Roles & Responsibilities

Leadership

Communications

Assets

Non-conformity &

Preventive Actions

Information & Documentation

38

Risk

Identifications Scope

SAMP Element Chart

Source: Larder’s Guide to ISO 55000 – Darrin J. Wikoff

Design Planning

“We can say that the industrial management

is a continuous and gradual process of

education, where the teacher and student

both learn from each other.”

Donaldson Brown

Frank Donaldson Brown

Born: February 1, 1885

Birthplace: Baltimore, USA

Death: 1965

Asset Contribution Modeling


40 Source: The New Asset Management Handbook – Reiabilityweb.com

𝑅𝑂𝐴 =𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

𝑅𝑂𝐸 = Operating efficiency x Asset use efficiency x

Financial leverage

𝑅𝑂𝐸 =𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒

𝑅𝑒𝑣𝑒𝑛𝑢𝑒x

𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠x

𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

𝐸𝑞𝑢𝑖𝑡𝑦

𝑅𝑂𝐸 = 𝑅𝑂𝐴 x 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

𝐸𝑞𝑢𝑖𝑡𝑦


41

Return on

Equity

Asset

Turnover

Net Profit

Margin

Revenue

Total Assets

Revenue

Total Expenditure

Current Assets

Long-term Assets

Total Assets

÷

+

Source: The New Asset Management Handbook – Reiabilityweb.com

Net Income

÷

X Return on Assets

Equity

Total Debt

-

-

÷ Equity

Multiplier

X

Extended generic DuPont model

Line of Sight for Asset Management

42

Net Profit Margin

Revenue

Net Income

`

Revenue

Total

Expenditure

Raw Material

Operation

Maintenance

Depreciation

Other

Work Mgmt

Reliability

- +

Improved Work Management:

• More efficient use of spares and labors

• High priority given to tactical maintenance that improve equipment reliability and

maintainability

• Improve OEE


43

Revenue Parameter Description

Design Capacity The minimum designed output capacity of the asset

per unit time

OEE Overall performance of an asset(s) under

consideration

Sales rate Financial value per unit design capacity

PPT Planned production time

Design Capacity

OEE

Sales Rate

PPT

x Revenue

Revenue = Designed Capacity x OEE x Sales Rate x Interval


44

Net Profit

Margin

Revenue

Total

Expenditure

Design Capacity

OEE

Sales Rate

PPT

Work Mgmt

Reliability

-

x

Availability

Performance

Quality

x Maintainability

Improved operational efficiency

through improved OEE

45

Business Goal

Increase Shareholder

Value

Increase Revenue

Increase Availability

Increase Capacity by Downtime Reduction

- Improved Uptime

-Increased Quality

Increase Capacity

Increase Capacity by Asset Efficiency Improvement

- Eliminate idling and minor stoppage losses

- Achieve design capacity of asset

Increase Capacity by Capital Investment

- Invest in new assets to meet market demand

Achieve design capacity of new assets . Higher volume in demand market.

Reduce Costs

Reduce Expenses

Control / Reduce Expenses

(labor, Material , Contractors, Warranties, Energy, …etc.)

Reduce Capital Investment

Defer / Eliminate Capital Expenses

- Extend Asset Life

- Increase Capacity (Eliminate Equipment Investment)

- Eliminate Redundant / Excess Assets

Financial Strategies Asset Management Objectives


46

Organizational Line of Sight

Finance

H.R.

Purchasing

Inventory

Design

Engineering

Project

Engineering

Production

Engineering

Operations Maintenance

Management

Assets

It is necessary to develop a clear line of sight , connecting the

stakeholders’ needs with the specific asset management objectives

47

Organizational Line of Sight

Finance

H.R.

Purchasing

Inventory

Design

Engineering

Project

Engineering

Production

Engineering

Operations Maintenance

Management

Assets

Shared Asset

Management

Information and

Activities

Develop / understand stakeholders /

organizational objectives

Develop asset management policy to achieve SH /

organizational objectives

Develop SAMP to achieve the SH /organizational

objectives

Develop asset management objectives to achieve the

SAMP

Develop AM plans to support asset management

objectives (steps)

Implement AM plans (sub-divide into lifecycle

activities)

Asset / Asset Portfolio

Performance

evaluation and

improvement

WHAT TO DO HOW IT GET

DONE

Develop Asset

Management

System

1. Competent

resources

2. Awareness and

communication

3. Information

requirements

4. Documented

information

Activities, resources,

timescales required to

meet the asset

management objectives

Asset Management

Implementation /

Development Flowchart

1

2

3

4

5

6

7

8

9

ADCO: The First Oil & Gas Company in the Gulf to be

certified in ISO 55001 for Asset Management

The Abu Dhabi Company for Onshore Oil Operations,

ADCO, has become the first oil and gas company in the

Arabian Gulf to achieve the new ISO 55001 standard

certification for its Asset Management System.

ADCO had previously used the BSI PAS 55 system.

Transco – Abu Dhabi Transmission and

Despatch Company (UAE)

• TRANSCO located in Abu Dhabi , UAE is one of the first water

and electricity companies achieving ISO 55000 certification.

• Achieving this accreditation will support vision of being “ a

leading international provider of Transmission services for

potable water and electricity.”

• Accreditation placed TRANSCO in the ranks of global

companies with the highest international standard in Asset

Management.

• TRANSCO demonstrates a culture of continuous improvement

and is continually looking for new and innovative approaches to

the way it manages assets.

Transco – Abu Dhabi Transmission and

Despatch Company (UAE)

http://www.transco.ae/ISO55000/Default.htm

ISO Compliant Organizations - Features

Clear understanding how their assets enable them to attain the mission and goals of the organization.

Ownership and accountability for asset management remains at a top-management level

The organization views asset management at the same level of importance as safety, environmental, quality, and other considerations

Ensure that the function of asset management and the operation of the asset management system are aligned with all other organizational functions

The organization will have a clear understanding of the risks and opportunities presented by the assets

Resources

International Organization for

Standardization

http://www.iso.org/iso/home.htm

https://theiam.org/

http://reliabilityweb.com/

http://www.bsigroup.com/

http://www.nams.org.nz/

Discussion

Documents

Implementing ISO 55000 - 4th Annual Maintenance Kuwait ...maintenancekuwait.iqpc.ae/media/1004123/78177.pdf · Implementing ISO 55000 Translate Your Organization's Objectives Into