JWW JWW 11

The Publicly Available Specification for the optimized management of physical assets

John Woodhouse

Knowledge Services Director, IAM

PAS 55

PAS 55/PAS 55/22

A quick summary

• What is PAS 55, and where did it come from?

• What are the key elements of it?

• Next IAM steps & plans (development & usage)

PAS 55/PAS 55/33

What is “Asset Management”?

Complex System, Plant & Infrastructure owner/managers:Juggling the short & long term mix of asset

acquisition/investment, usage (value/service/benefits generation)care/maintenancedisposals/replacements/modifications?

Portfolio management of cash, shares, bonds & futures?

A more professional-sounding name for equipment maintenance?

PAS 55/PAS 55/44

“Publicly Available Specification”

CustomisationTime, consensus& development

Different levels of specification & standards

Industry Codes of Practice

BSI PAS

Company Internal Procedures

BS

EN

ISO

CWA

Courtesy of British Standards Institute

PAS 55/PAS 55/55

PAS 55 Who has been involved

Drafting GroupJ.Woodhouse, IAM, ChairmanD.Ford, FaberMaunsell, Secretary & ContractsStewart Cormie, BSI, Project ManagerPeter Beveridge, BSI, Sub-editorM.Cottam, Lloyds Register, TechnicalM.Mustafa, Lloyds Register, Drafting

Review Panel Members (8 networks, 7 inst./regulators, 5 services, 3 ‘point’ asset companies)AWG plcCIPFA (Institute of Public Finance & Accountancy)DfT (Department for Transport)EDF EnergyFaberMaunsell LtdHalliburton KBRHealth & Safety ExecutiveInstitute of Asset ManagementInterbrewLloyds RegisterLogicaCMG

London Underground LtdMinistry of Defence (DLO)National Grid Transco plcNetwork RailNorthern Electric (Yorkshire Electricity)Northumbrian Water plcOfgem (The Office of Gas & Electricity Markets)OFWAT (The Office of Water Services)ORR (Office of the Rail Regulator)Severn Trent Water LtdThe Woodhouse Partnership LtdUK National Air Traffic Services Ltd

* Sponsors

PAS 55/PAS 55/66

What was involved

• Idea first floated Feb 2002

• Proposal submitted to BSI in July, Work started Nov 2002

• 14 other standards to review & interlink/cross-reference

• 10 iterations of consultation and refinement, including 2 formal Review Panel cycles & 2 public consultations.

• 80 - 250 suggestions (60 pages) of input to be incorporated at each stage!

PAS 55/PAS 55/77

What has resulted

Part 1 (“PAS 55-1”) – The specificationfor the optimal management ofphysical infrastructure assets(list & description of requirements)

Part 2 (“PAS 55-2”) –Guidelines for the application of PAS 55-1(the hints & tips)

“Optimised management of physical infrastructure assets”

PAS 55/PAS 55/88

Scope of an ‘Asset Mgmt System’

Business plans

Asset systems or business units

Asset types,Processes,Procedures

& Standards

Legal and stakeholder requirements and expectations(customers, shareholders, regulators, employees, suppliers, society)

Optimized AM strategy, objectives, plans & performance targets

Performance& condition

monitoring

Continuous

improvem

ent

AssetManagementSystem

Other requirements

& systems

PAS 55/PAS 55/99

PAS 55 definition of AMPAS 55 definition of AM

“The systematic and coordinated activities and practices through which an organization optimally

manages its physical assets, and their associated performance, risks and expenditures over their life cycles,

for the purpose of achieving its organizational strategic plan”

OR, more simply,

"the optimum way of managing assets to achieve a desired and sustainable outcome".

PAS 55/PAS 55/1010

What PAS 55 is, and is not…

• PAS 55-1 is a 21-piece jigsaw of requirements necessary to display AM competence.

• Requirements are for ‘good’, rather than ‘best’ practice in each area.PAS 55-2 provides some guidance on the degrees of achievement, methods etc.

• It is the coverage, appropriateness & connectivity that count. Excellence in one area does not compensate for gaps in others

• The requirements are for effective & appropriate processes: evidence for what is being done & why.

How it is being done is up to the organisation & may vary widely

• PAS 55 is independent of industry sector, asset type or distribution & asset ownership structure.

It does not matter what, or where the assets are; what matters is the clear organisational objectives & good, sustainable alignment of asset investment, utilisation & care (maintenance) to those goals.

PAS 55/PAS 55/1111

Key principles – as integral parts of the business

• Aligned– business plans –> asset plans -> actions -> learning– top-down & bottom up understanding/coordination)

• Whole life managed– planned, costed, optimized

• Optimized– inputs/outputs, short/long term, capex/opex– costs/risks/performance

• Inclusive– multi-disciplined, collaborative, people-sensitive

• Risk-managed – active identification, quantification, control

• Data-supported• Continuously improved• Pragmatic

PAS 55/PAS 55/1212

Based on the familiar structures for ISO quality & risk management standards

AssetManagement

System4.1

Implementation& operation

4.4

Checking &

corrective action 4.5

Management

Review4.6

Policy& Strategy4.2

AM Info, riskassessment& planning4.3

PAS 55/PAS 55/1313

Example: 4.2.2 Asset Management Policy

• Derived from organizational strategic plan

• Framework for developing strategy, objectives, targets & plans

• Consistent with risk management framework

• Commitment to continual improvement

• Commitment to compliance

• Visibly endorsed by top management

• Documented, communicated, implemented & reviewed/maintained

PAS 55/PAS 55/1414

4.2.3 Asset Management Strategies

• Long term

• Consistent with policy & org. strategic plan

• Record of asset systems, functions, performance, condition, risks & asset criticality

• Action plans, timescales, responsibilities

• Optimized for asset life cycles*

• Periodically reviewed & updated

* Period of functional demand, economic life or system renewal cycle

PAS 55/PAS 55/1515

4.3 Asset Management Information, Risks & Planning

• Information system; adequacy, accessibility, consistency

• Risk management; identification, assessment & control

• Legal, regulatory & statutory requirements monitored

• AM objectives; clear, quantified, communicated, reviewed

• Asset performance & condition targets optimized; Specific, Measurable, Achievable, Relevant, Timely

• Plans; all life stages, optimized, prioritized, designated resources, responsibilities, time-scales, updated

PAS 55/PAS 55/1616

What now?

• PAS 55 usage today– In-house self-assessment, guidance, education & planning– External audit & accreditation– Benchmarking & regulatory reviews?

• Updating & refinement programme– 2-yearly review & update cycle (next is due in 2006)

• ‘Part 3’ projects (guidance for specific asset types)– Property assets: joint development with RICS, BIFM & others– Human assets: IAM Competency Requirements project– Information & data assets?– Electrical & gas networks?

• European developments– CEN workshop & recruitment of European partners

PAS 55/PAS 55/1717

Participants in ongoing projects (so far…!)

Property GuidelinesIAMRICSBIFMOffice of Government CommerceHM Courts ServiceNational GridCE Electric UKLondon UndergroundNetwork RailBruton KnowlesMRO SoftwarePublic Sector PartnershipsFeilden+MawsonS2 PartnershipMouchel Parkman

Competency RequirementsIAMAker KvaernerAnglian WaterAMT-SybexAughinish AluminaBritish Nuclear GroupBucks University CollegeCentral NetworksCity of CalgaryCompetence Assurance SolnsConsilianDNV ConsultingEdison, CaliforniaEnergy & Utilities Sector

Skills CouncilEssent NetwerkHalcrow

Leeds UniversityLloyds RegisterLogicaCMGLondon UndergroundMWHNAMSNational GridPirelliRobert Gordon UniversityScottish PowerThe Woodhouse PartnershipTubeLinesUniversity College LondonUnited UtilitiesUniversity of Lincoln

PAS 55/PAS 55/1818

A ‘typical’ collaboration

• Committed team of core sponsors & steering/review panel (20-40)

• Smaller, energetic working party (6-8 max) with good project manager & admin support

• Widespread pre-endorsement of project objectives, scope and principles– Significant time to develop these (3-12 months)

• House rules to be clarified:– degree of ‘specification’/expectation (vs. merely providing examples)– level of aspiration (how high to set the hurdles)– language & glossary discipline (e.g. BS0)

• Tight change control & tracking process

• Time & multiple review cycles– at least 6x working drafts, 2x review panel, 2x ‘public’ consultations

• Expect 18-24 months total project

• Ongoing review & maintenance

Industry Codes of Practice

BSI PAS

Company Internal Procedures

BS

EN

ISO

CWA

Industry Codes of Practice

BSI PAS

Company Internal Procedures

BS

EN

ISO

CWA

Thank you…

www.iam-uk.orgiam@iam-uk.org

john.woodhouse@twpl.com

ASSET MANAGEMENTThe systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated

performance, risks and expenditures over their life cycles, for the purpose of achieving its organizational strategic plan.

OR

"the optimum way of managing assets to achieve a desired and sustainable outcome".