Corporate Asset Awareness and the ISO 55000 Approach

In this article, I will try to explain the ‘ISO 50000 Asset Management System,’ a system widely implemented in many countries but only recently gaining recognition in Turkey, in its general framework.

The concept of asset management has necessitated a standard that encompasses the entirety of the corporate asset awareness approach. As a result of collaborative work by specialized organizations, the PAS 55 Asset Management Standard was published by BSI in 2003. Revised in 2008, the standard was updated by ISO in 2014 and published as the ISO 55000 Asset Management Standards series.

The ISO 55000 standard is a resource management standard that provides specifications, requirements, and guidelines for establishing, operating, improving, and maintaining effective resource management. The ISO 55000 standard provides specifications for the implementation and use of resource management and resource management systems and organizational structures.

Every society around the world faces a significant asset management challenge:

• Developing economies strive to identify the lowest cost/highest return investments to maximize immediate benefit,

• Rapidly developing countries face the challenge of understanding the lifecycle costs of their infrastructure,

• More developed economies seek ways to extend the lifespan of their infrastructure and address major global challenges such as climate change.

What do we mean by ‘Physical Asset’?

The dictionary definition of ‘Asset’ is “anything that has economic value and is owned by an individual or company.”

Why ‘Physical’ Assets?

The elements we are referring to include infrastructure facilities such as buildings, electrical cables, water pipes, railway lines and subway tunnels, and industrial assets such as oil platforms, chemical plants and process plant conveyors.

This does not refer to financial assets, human resources or personal assets as they are normally discussed in their context.

Instead, it refers to the non-physical things that affect these physical assets (skills, data, systems and software).

What is Asset Management, and What Isn't?

Asset Management:

• It is a perspective that views physical assets not as inanimate and unchanging masses of metal/plastic/concrete, but as objects and systems that react to their environment, change and normally deteriorate with use, gradually age and eventually fail/stop working/die.

• It acknowledges that assets have a life cycle.

• It is as important for those working in the finance sector as it is for engineers.

• It is concerned with understanding and managing the risks that come with asset ownership.

  
  

  The Fundamental Principle in Asset Management: ‘Perspective’

It is an approach within an organization that aims to align the direct work done on assets with the organization's goals.

It is a discipline that considers and addresses the risk of owning a particular asset, aligning it with the goals of the organization operating that asset.

Asset Management:

• It is not just a matter of maintenance. Maintenance is part of asset management, as should design, procurement, installation, commissioning, and operation.

• It is not a substitute for quality management.

• Asset management, like other management processes, must be examined through a quality process to ensure rigor.

• It is not a project management system.

• It is not just for engineers. It should be of interest to everyone working in a company that owns or operates assets. This includes those working in procurement, finance, personnel, services, planning, design, operations, management, leadership, marketing, and sales.

• It is not just an accounting process. While it helps you understand the wear and tear of an asset and therefore its depreciation, it should be of interest to every part of the organization.

Why is Asset Management Important?

Asset management is important because:

• It aims to reduce the total costs of businesses.

• It reduces the capital costs of asset-centric investment.

• It aims to improve the operational performance of its assets (reducing failure rates, increasing availability).

• It aims to reduce potential occupational safety and environmental impacts that may arise from the operation of assets.

• It aims to protect and enhance the reputation of the organization.

• It aims to reduce legal risks associated with business assets.

What are the expectations from the practitioners?

You must anticipate that the problem will occur and develop strategies to minimize the resulting losses.	You should develop strategies to prevent the problem from arising in the first place.	If there is a possibility of a problem arising, you should develop strategies to reduce the likelihood of it happening.
Preventive Maintenance Shutdown Maintenance Predictive Maintenance Non-Destructive Testing Vibration Analysis Oil Analysis Thermography Engine Current Analysis Total Productive Maintenance (TPM) Criticality Analysis Emergency Management Computerized Maintenance Management System (CMMS) Key Performance Indicators (KPIs) Risk-Based Inspection Operator Supervision Maintenance Engineering	Engineering / Maintenance Standards Statistical Process Control Lubrication Management Hazard and Operability Study (HAZOP) Hazard Identification (HAZID) Failure Mode Effect Analysis (FMEA) Hazard and Operability Study (HAZOP) Root Cause Analysis (RCA) Training and Skill Development Quality Management Systems Planning and Scheduling Continuous Improvement Supply Chain Management Standard Operating Procedures (SOPs) Reliability Engineering	Training and Skill Development Large Size / Small Size Equipment More Durable Construction Materials Personal Protective Equipment (PPE) Separation / Disassembly Controlled Atmosphere Environment (e.g., +/- pressure; ExProof equipment)