ISO 55000 and the benefits of implementation for

ISO 55000 and the benefits of implementation for Councils Presentation © IQ-AM Pty Ltd RTO 22515 ABN 77147017525 Some content from other sources utilised for educational purposes Tom Carpenter CEO, IQ-AM Pty Ltd Certified Asset Management Assessor Asset Management Council AMBOK Team Member and Victorian Chapter Chair JAS-ANZ Accreditation Auditor ISO PC 251 Australian Co-Representative ISO WG 39 Australian Representative JAS-ANZ Accreditation Scheme Tech Committee Representative

External Drivers • Regulators: − − − Economic Environmental OH&S − − Central agencies – Treasuries Service Agencies • Government: Insurance/ Risk Management Legal (Protection and Attack) Customers and Community Boards/Governance /Top Management • Investors and Lenders • • 2

External Drivers Asset Design Maintenance Asset Age Risk analysis and management Resources, skills, management and supervision – Training – Renewal and Replacement funding – Customer willingness to pay – – – Case Study 2 The Victorian Black Saturday Bushfire Royal Commission investigated: 3

What is Asset Management? Definition: 3. 3. 1 asset management: coordinated activity of an organization (3. 1. 14) to realize value from assets (3. 2. 1) 1 What it does: Asset management translates the organization's objectives into asset-related decisions, plans and activities, using a risk based approach. 1 1 Definition and text extracted from ISO 55000 FDIS Draft (© ISO, 2013) 4

International Standard ISO 55000 – Definitions ISO 55001 – Requirements ISO 55002 – Guidelines WSAA – Aquamark & future ISO Standard IPWEA IIMM WA Treasury – Guidelines Ausroads – Guidelines Organisational/ Other Guidelines & Standards Regulators will use the International Standard as the independent ‘test’ or benchmark

What is Asset Management? During an utility industry benchmarking study it was determined that the cost of the Asset Management ‘System’ made up only 3% of industry cost – however: the outputs (activities and decisions) generated or impacted on at least 82% of industry’s Total costs.

Example of alignment of Managing the Organisation, the AMS, AM and managing Assets 7

Management System Certification Existing frameworks and understanding ISO 5500# 8

Is this Asset Management? The GFMAM 1 Landscape The GFMAM 39 essential Asset Management Subjects Subject Group Asset Management Subject Asset Management Strategy and Planning Asset Management Decision-Making 1 GFMAM Asset Management Policy Asset Management Strategy Demand Analysis Strategic Planning Asset Management Plan Whole-life Cost & Value Optimisation Operations & Maintenance Decision. Making Capital Investment Decision-Making Resourcing Strategy & Optimisation Shutdowns & Outage Strategy & Optimisation Ageing Assets Strategy – Global Forum for Maintenance and Asset Management

Is this Asset Management? GFMAM Landscape The GFMAM 39 essential Asset Management Subjects Subject Group Lifecycle Delivery Activities Asset Management Subject Technical Standards & Legislation Asset Acquisition & Commissioning Systems Engineering Configuration Management Maintenance Delivery Reliability Engineering Asset Operations Resource Management Shutdown & Outage Management Fault & Incident Response Asset Rationalisation and Disposal Asset Knowledge Enablers Asset Information Strategy Asset Knowledge Standards Asset Information Systems GFMAM – Global Forum for Maintenance and Asset Data. Management and Knowledge

Is this Asset Management? GFMAM Landscape The GFMAM 39 essential Asset Management Subjects Subject Group Asset Management Subject Organization and People Enablers Risk & Review Contract & Supplier Management Asset Management Leadership Organizational Structure & Culture Competence & Behaviour Criticality, Risk Assessment and Management Contingency Planning & Resilience Analysis Sustainable Development Weather and Climate Change Asset & Systems Change Management Assets & Systems Performance & Health Monitoring Management Review, Audit & Assurance Accounting Practices Stakeholder Relations GFMAM – Global Forum for Maintenance and Asset Management

Is this Asset Management? 12

Systems Thinking: Definition of a ‘System’ 1: A system is a group of interacting, interrelated, and interdependent components that form a complex and unified whole Systems have several defining characteristics 1: • Every system has a purpose within a larger system • All of a system's parts must be present for the system to carry out its purpose optimally. • A system's parts must be arranged in a specific way for the system to carry out its purpose. • Systems change in response to feedback. • Systems maintain their stability by making adjustments based on feedback. 1 Extracted from: http: //www. pegasuscom. com/systems- 13

What is Asset Management? A group of interrelated, interacting, and interdependent components that form a complex and unified whole

What is Asset Management? …or is it also how you put the activities together? i. e. from this to this… and avoid this… 15

What is Asset Management? 16

What is Asset Management? Asset Management Council AM Framework: 17

ISO 55000 - Relationships between key terms (modified) Managing the Organisation Asset Management System Set of inter-related or Interacting Elements to establish AM policy, AM objectives and processes to achieve those objectives Asset Management Coordinated activity of an organisation to realize value from assets Asset Portfolio Assets that are within the scope of the asset management system 18

Being Certified… 19

ISO 9000 Issues: • Failure to recognise that the QMS had a purpose • Failure to link process quality to improvement in outputs or outcomes • Quality control of audit process “Ring the boss, tell him we’ve fixed all the potholes”

Elements of the ISO 55001 AMS asset management: coordinated activity of an organization to realize value from assets Organizational context Leadership Planning Support Operation Performance evaluation Improvement 21

Elements of the ISO 55001 AMS NOTE: Based on ISO 55001 DIS Draft

Management System Certification Buyer Beware! Conformity Assessment Body Audit Team Organisation 23

Management System Certification Current (transitional) situation • Any Conformity Assessment Body (CAB) accredited to certify ‘Management Systems’ can certify against ISO 55001 • The CAB is responsible for determining its auditor’s competence • ISO/IEC 17021 -5 (auditor competency technical specification) published on the 1 st of April 2014 but neither it, nor 17021 -1 are enforceable as there is no ‘accreditation scheme’ for CAB’s • The Asset Management community had NO decision making ‘power’ in this process 24

Management System Certification • JAS-ANZ has developed a Conformity Assessment Body (CAB) Accreditation Scheme based on: – ISO/IEC 17021 – Requirement’s for management system auditing CAB’s – ISO/IEC 17021 -5 for ISO 55001 audit team technical competencies – GFMAM AM Landscape – Asset Management Community providing AM accreditation input • Processes to be completed: • JAS-ANZ take the Accreditation Scheme to PAC (Pacific Accreditation Cooperation) – meeting in Mexico in June • Then to EA (European co-operation for Accreditation) and ANSI-ASQ National Accreditation Board (ANAB) • Then to the International Accreditation Forum (IAF). 25

Other Processes/Activities • PAS 55 – Technical Specifications are normally withdrawn when a corresponding Standard has been released • AMCouncil has released an ISO 55001 ‘Companion Guide’ document. • WPi. AM has created an auditor knowledge exam and certification (Certified Asset Management Assessor (CAMA) • IIMM being re-issued (2011 mapping doc avail) 26

Management System Certification Key features of the Accreditation Scheme: Will contain: – Requirements for the CAB – Requirements for the Client – Interpretation and application of the Standard – Requirements for CAB use of subcontractors Key features: − Auditor competencies − CAB Report content requirements − Any key elements of ISO 55002 (interpretation and application of ISO 55001) 27

Auditor Competency Asset Management is Maintenance in drag… Asset Management is Reliability Engineering in drag… Asset Management is Maintenance Management in drag… Asset Management is Financial Management in drag… Asset Management is Accounting in drag… Asset Management is Facility Management in drag… The Asset Manager?

Who can be Certified? ISSUE: Under what circumstances, or contractual arrangements, will Certification be possible? Owners? Asset Managers? Service Providers? Is the determinant: those who make AND control implementation of life cycle management decisions linked to value generation?

Who can be Certified? ISSUE: Under what circumstances, or contractual arrangements, will Certification be possible? • Contracted Service Provision − Unit Cost based activities − Works Management • BOO/BOOT • Alliances • Others?

Integrated Management System Auditing What parts or elements of the ISO 55001 AMS fit under the IBMS framework, & which require Asset Management/AMS specific technical skill. Additional specific technical skill required 31

Impact on consultant service offerings ISSUE: Process Improvement data gathering or analysis tools will require mapping or modification Issue: Does the Asset Management Process Improvement audit/gap tool I use, address all elements of the ISO 55001 Standard and what is being done to ensure alignment?

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CERTIFICATION CONFORMANCE GRADES 1. Major nonconformity: One or more elements of ISO 55001 are not met, or the outcome is ineffective. 2. Minor nonconformity: One or more elements of ISO 55001 are not fully met, or the outcome is only partly effective. 3. Conforms (first certification audit) fully documented, performance managed, integrated and subject to defined audit, review, continuous improvement and updating. 4. Conforms at re-certification fully documented, performance managed, integrated and subject to defined audit, review, continuous improvement and updating with proven evidence of continuous improvement action completion. 35

CERTIFICATION BENCHMARKING? 36

CERTIFICATION PATH TO MATURITY 37

KEEPING STAKEHOLDERS ON SIDE 38

Questions?