ISO 55000 Standard for Asset Management
Assets, and value realized from them, are the basis for any organisation delivering what it aims to do. Whether public or private sector, and whether the assets are physical, financial, human or ‘intangible’, it is good asset management that maximizes value-for-money and satisfaction of stakeholders’ expectations. It involves the coordinated and optimized planning, asset selection, acquisition/development, utilization, care (maintenance) and ultimate disposal or renewal of the appropriate assets and asset systems. Insights into the integration and optimization of asset management have developed since the 1990s (from the North Sea oil and gas industry and the Australian public sector), to identify a range of essential business processes, alignment activities, and system integration features that yield very significant performance benefits.
What is CAMA?
World Partners in Asset Management (WPiAM) is a worldwide partnership, established in late 2014, of national non-profit professional associations working together to enable individuals and organizations to develop, assess and recognize competence in Asset Management, for the benefit of their members and of the asset management community globally.
Understanding the Relationship: Asset Management to Asset Performance Management
ISO55000 defines asset management as systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems and their associated performance, risks, and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.
New: ISO/TS 55010 just released!
Asset Management is a function not exclusive to any one part of the organization but should be seen as multi-functional and multidisciplinary. Aligned financial planning, accounting, decision making and reporting are crucial aspects of effective asset management. Conversely asset management has major impacts on financial planning, decision making and reporting. Successful achievement of organizational objectives requires close coordination and alignment between the asset management, finance and accounting functions.
Strategies to Manage Asset Performance
Creating a world that doesn’t break down offers the process industries a $20 billion opportunity. Reducing unplanned downtime and increasing asset utilization represent the biggest opportunities for financial improvement in production operations. Albert Einstein could have been alluding to smart manufacturing when he said, “If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes.”