implementing iso 55000 - 4th annual maintenance kuwait...
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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
Aim of Asset Management
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.
Aim of Asset Management
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
ISO 55001 – Asset Management –
Management systems –
Requirements
ISO 55002 – Asset Management –
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.
BS ISO 55001 – Requirements
Organization
Leadership
Planning
Support Operation
Performance Evaluation
Improvement
26 Elements of Asset Management System
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
27
Support
Organization
BS ISO 55001 – Requirements
Planning
Operation Performance
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
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
29
Support
Organization
Leadership
ISO 55001 – Section 5
Leadership and commitment
Policy
Organizational roles,
responsibilities and authorities.
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
30
Support
Organization
Planning
ISO 55001 – Section 6
Actions to address risks and
opportunities for the asset
management system.
Asset management
objectives and planning to
achieve them.
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
31
Support
Organization
Support
ISO 55001 – Section 7
Resources
Competence
Awareness
Communication
Information requirements
Documented information
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
32
Support
Organization
Operation
ISO 55001 – Section 8
Operational planning and control.
Management of change
Outsourcing.
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
33
Support
Organization Performance Evaluation
ISO 55001 – Section 9
Monitoring, measurement,
analysis and evaluation
Internal audit
Management review
BS ISO 55001 – Requirements
Planning
Operation Performance
Evaluation
Improvement
34
Support
Organization
Improvement
ISO 55001 – Section 10
Nonconformity and corrective action
Preventive action
Continual improvement
Typical Comprehensive Asset Management
Process, Depicting ISO 55001.
Strategic Asset Management Plan (SAMP)
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.
Strategic Asset Management Plan (SAMP)
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
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
Asset Contribution Modeling
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
Line of Sight for Asset Management
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
Line of Sight for Asset Management
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
Line of Sight for Asset Management
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