The 7 Requirements of an Asset Management System

Understanding the Requirements of the ISO 55001 Standard

When looking through the ISO 55001 standard, one may quickly become overwhelmed with the requirements.

The ISO 55001 standard was written in a way that groups the requirements, making it easier to understand & implement the standard.

This is different that subjects found in asset management (which we will discuss next week). These are the requirements that must be met if one to certify themselves against the ISO 55001 standard.

Context of the Organization

Since asset management is an organizational system, it is imperative that the organization takes into account the different factors that affect them. This includes the external context such as social, cultural, economic and physical environments. Regulatory, financial are other external contexts which needs to be considered. The internal context includes the organizational culture, environment, and the objectives.

Understanding the organization’s stakeholders is critical to understand the balance between cost, performance risk and to be able to implement rules to ensure consistent decision-making balances those requirements.

The requirements for the Context of the Organization can be found in ISO 55001:2014 Clause 4.

Leadership

An asset management system must be led from the top of an organization. Without leadership the asset management systems will not be sustained, nor will it provide the benefits to the organization and stakeholders.

Leaders are required to develop the asset management objectives with the organizational objectives, and cascade those down to everyone in the organization.

Leaders at all levels must continue to not only communicate the asset management system but live it each day. They accomplish this by resourcing the organization to achieve the objectives, define RACIs, and eliminate any barriers or conflicts that may arise.

The requirements on Leadership can be found in ISO 55001:2014 Clause 5.

Planning

The direction and objectives of the organization are developed during the strategic planning activities, and documented in the organization’s plan. This plan is used to develop the Strategic Asset Management Plan (SAMP).

The SAMP is used to guide the development of the asset and asset management objectives, along with how to achieve the objectives, at a high level. The SAMP is then used as guidance to develop the Asset Management Plan(s) for the various asset types.

Lastly, all objectives in the Asset Management Plan should be fully aligned with the organization.

These requirements can be found in ISO 55001:2014 Clause 6.

Support

Implementing the Asset Management Plan(s) requires the right level of support. This support is generally resources (people, information, systems, etc.). The Asset Management Plan(s), will spell out the anticipated requirements for the various support functions.

This is where cross-functional groups really come into asset management. HR & IT are critical in their support of asset management. Whether it is ensuring the organization has the right capabilities and competencies, or the databases to house all the asset information.

These requirements can be found in ISO 55001:2014 Clause 7.

Operations

The Asset Management system is now able to be put into operation. It is during this phase, that the plans are implemented and value realized from the system.

During the operation of the asset management system, changes may occur to funding, risk profiles, etc, and need to be addressed. This is all part of the operation of the asset management system.

If any activities were outsourced, regardless of the reason, the organization needs to ensure those activities are conducted in an appropriate manner, aligned with the business objectives.

These requirements can be found in ISO 55001:2014 Clause 8.

Performance Evaluation

Using the objectives set forth in the SAMP, or asset management plan, the performance of not only the assets, but the asset management system needs to be evaluated.

If the objectives are not being met, the reasons why need to be understood and action is taken to improve the performance. Without evaluating the performance, the asset management system will likely not be able to meet the objectives of the organization.

The information gathered during the performance evaluation phase should be fed back to the senior managers for use during the management review.

These requirements can be found in ISO 55001:2014 Clause 9.

Improvement

The information gathered in the performance evaluation will be used to drive improvement in not only the assets but the asset management system as well.

But the organization needs to ensure that the asset management system is being followed, therefore, it should be conducting regular assessments or audits. This will ensure the system is being followed by all those in the organization. Any non-conformities shall be documented, and corrective, or preventive actions put in place to prevent reoccurrence.

Lastly, in the event that there is any type of incident (failures, emergencies, etc.), there is an opportunity to improve the asset management system. Take these incidents as a learning experience and improve any risk profiles and response plans.

These requirements can be found in ISO 55001:2014 Clause 10.

There are the 7 requirements of any asset management system. Using the 7 requirements will ensure that the asset management system is developed and implemented as any management system should be.

The ISO 55001 is not a framework for asset management, but for an asset management system, just like ISO 9001, and ISO 14001. This is a critical difference that everyone should understand.

Remember, to find success, you must first solve the problem, then achieve the implementation of the solution, and finally sustain winning results.

I’m James Kovacevic
Eruditio, LLC
Where Education Meets Application

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