What the new ISO 55000 Asset Management Standards will mean for you and your organisation.

by Peter Way, Chair NAMS.AU

As with all new trends or innovations, there will be opportunities for enhancements and risks if the implications are simply ignored. In particular, organisations should think about how application of a management system approach might improve their AM performance. Note that when we speak of an asset management system, we are not referring to a software package.  

ISO 55000, which in fact includes three Standards; the first written in accordance with ISO-established specification for the consistent structure and content of all their Management System-type standards. Accordingly, users will ultimately see similarities between the Quality Management, Environmental Management and Risk Management-type standards.

ISO 55000 is intended to give senior management a quick appreciation of why an organisation should embrace asset management. It highlights that asset management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve organisational objectives. Fundamentals include value, alignment, leadership and assurance in service delivery.

ISO 55001 incorporates about 70 ‘thou shalt’ statements, with a number of sub-elements, and will likely be a focus for organisations. It is about what to do in establishing a management system, not how to do it. Importantly, each organisation can choose what assets (physical or non-physical) to which to apply the Standards, and the scope or complexity of the system.

ISO 55002 contains explanatory text necessary to clarify the requirements specified in ISO 55001 and provides examples to support implementation. IPWEA has developed a policy position to steer stakeholders along a path of organisations choosing whether or not to apply the Standards, but encouraging them to do so where it is advantageous to their business. It is certainly not desirable that governments legislate to make the Standards mandatory.

The main points of the IPWEA Policy on application of the Standards are:

• All infrastructure organisations should consider the Standards for the benefits to be gained from applying a Management System approach; • Governments should promote application at a level appropriate to business/community needs; • Application should not be prescriptive – apply to those assets and at a level appropriate to stakeholder needs; • Application should not be just for compliance, but part of the overall management approach; • Organisations should decide on their appropriate level of certifying compliance, or whether to seek certification at all.

On the issue of compliance, the International Standards Organisation (ISO) states that the main aim is to promote good practice, not just compliance. It will be mostly up to organisations to choose to apply them, as part of good business practice. However, it is likely that in some highly regulated areas, involving significant asset values, the regulators or even insurers may require the Standards to be applied to protect their interests. It is far better to have thought about what position might be best for your organisation and to seek to influence the outcome rather than it being suddenly imposed by others.

There are a number of excellent reference materials available around the world, including the International Infrastructure Management Manual (IIMM), that IPWEA sees as being pretty much the ‘how-to guide’ for implementing asset management. The IIMM has been cited in the bibliography to the Standards. 

To further assist practitioners, IPWEA is producing a Supplement to the IIMM, which will provide a mapping of the relevant sections in the manual that relate to each of the various requirements clauses of ISO 55001. It provides a how-to guide for applying ISO 55001 in infrastructure asset management.

IPWEA recognises it has a leadership role to play in bringing clear direction on asset management practice and use of these Standards, and we’re prepared for that challenge. IPWEA will run training sessions on the implementation of the ISO Standards, including use of the IIMM supplement, over coming months. To also assist practitioners, IPWEA is preparing an Assessment Framework to test alignment with the ISO 55001 requirements. This will enable organisations to carry out a simple self-assessment of how well they comply with the Standard and identify gaps that may need attention.

Download the IPWEA's free Quick Guide Supplement to the IIMM: Meeting ISO 55001 Requirements for Asset Management here.