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A Standardized Approach to Asset Management This is the question April 2016
A Standardized Approach to Asset Management
This is the question
April 2016
A Standardized Approach to Asset Management
Our Speaker for Today’s Program
Toby D. Rickman, PE, PWLFDeputy Director—Pierce County Public WorksTacoma, Washington, USA
Options for a standardized approach
A history of Asset Management
Five approaches
Why a standardized approach makes sense• More efficient• Develop best practices• Can advocate with similar vocabulary and ideas
Why create a coordinated approach toAsset Management?
1 Many use asset information• Planners, Programmers• Design/Construction• Maintenance and Operations• Communicators• Managers• Policy Makers
Why create a coordinated approach toAsset Management?
2 More efficient way to collect informationfor various purposes
A history of Asset ManagementPre-1950s “Fix it when it breaks”
1950s-70s Preventative maintenance, asset lifecycles, terotechnology
Early 1980’s
AM defined in NZ/AUS, true cost of service, service reliability
1990s Emergence of AM practice - UK, NZ and AUS
1996 Publication of International Infra Mgmt Manual by New Zealand Asset Mgmt Support (NAMS) & Institute of Public Works Engineering Australia (IPWEA)
Late 1990s American Public Works Association, US DOT and USEPA
A history of Asset Management cont.
2001 Government Standards Accounting Board, GASB 34
2004 Publication of Publicly Available Specification PAS55: British Standards Institute and Institute of Asset Mgmt
2008-2011
IIMM & PAS55 Updated, Public Sector Acct. Board PSAB 3150
2010 Global Forum on Maintenance and Asset Mgmt (GFMAM)
2014 ISO55000 published
2015 Groundswell of updated tools by GFMAM, IIMM, NAMS, etc.
OptionsInternational Standards OrganizationISO 55000
Asset Management British Columbia Framework
Asset Management Council - Australia Asset Management Book of Knowledge
British Standards InstitutionPublicly Available Specification 55 (PAS 55)
Pierce County Public Works 8 Elements of Asset Management
1ISO 55000
DefinitionsAsset Management is the “coordinated activity of an organization to realize value from assets.”
An asset is “an item, thing or entity that has potential or actual value to an organization.”
ISO 55000Fundamentals
Value of an asset to organization• How AM objectives align with organization’s objectives
• Life cycle management approach• Decision-making process
ISO 55000 Fundamentals
Alignment AM translates organizational objectives into technicaland financial decisions, plans and activities• Organizational objectives -> AM -> Plans
ISO 55000 Fundamentals
Leadership Culture is determinate of realization of value
• Roles, responsibilities, activity• Employee awareness, competence, empowerment• Consultation with employees & stakeholders
ISO 55000 Fundamentals
Assurance• Processes that connect people & performance objectives• Assure capacity at all life cycle stages• Process for monitoring & continuing improvement resources
ISO 55000 Fundamentals
Elements• Leadership• Planning• Support• Operations• Performance evaluation• Improvement
2Asset Management British Columbia (AMBC) Framework
Definition“Asset Management is an integrated process, bringing together skills, expertise, and activities of People; with Information about a community’s physical Assets; and Finances; so that informed decisions can be made, supporting Sustainable Service Delivery.”
AMBC FrameworkCore Elements
• Assets = infrastructure• Information = see list• People = Staff & elected officials, leadership, culture• Finance = $ to deliver services, capital costs,
operations & maintenance $, debt
AMBC FrameworkActivities
• Communicate to stakeholders, audiences, groups• Engage stakeholders, policy makers, staff, etc.• Review by communicating progress, review policy, strategy, plans
AMBC FrameworkProcess: Assess AM Practices
AMBC FrameworkProcess
Current state of assets • Inventory • Condition • Level of Service • Costs • Risk
AMBC FrameworkPlan
• Policy• Strategy• Plans
AMBC FrameworkImplement
• Practices• Measure & Report
AMBC Framework
Asset Management Building Blocks: Roadmap
3Asset Management CouncilAustralia Asset Management Book of Knowledge (AMBoK)
DefinitionAsset Management is the “the life cycle management of physical assets to achieve the stated outputs of the enterprise.”
AMBoKFramework
AMBoKLeadership and Culture
• Translate stakeholder requirements into organizational objectives• Drive behavior and culture• Enables teams to plan and excel• Needs clearly defined responsibilities and authority
AMBoKKey Concepts
• Cost, risk & performance• Decision-making criteria
AMBoKModel
AMBoKPrinciples
• Output Focus• Capabilities• Level Assurance (Risk)• Learning Organization
AMBoKProcess
• Plan• Do• Check• Act
4British Standards InstitutePublicly Available Specification 55 (PAS55)
DefinitionAsset Management is the “systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over the life cycles for the purposes of achieving its organizational strategic plan.”
PAS 55Essentially being replaced by ISO 55000
• Terminology changes• Better applies to more types of assets• Refers to ISO31000 for risk management• Focus on organization and stakeholder requirements• Financial reporting and data requirements• Audits and documentation
PAS 55Context of ISO 55000
• Organizational ManagementThe steering mechanism for the organization as awhole—setting organizational vision and objectives
• Asset ManagementThe coordinated activities of the organization to realize value from its assets
PAS 55Context of ISO 55000
• Management System (AM)Interacting processes to establish AM policy and objectives and to deliver upon these objectives
• Asset PortfolioAssets that are within the scope of the management system (AM)
PAS 55Elements
1. Context of the organization• Organizational context• Internal & External Stakeholders• Scope of the AM system
2. Leadership• Leadership & Commitment• Policy• Roles & Responsibilities
PAS 55Elements
3. Planning• Risks to the AM system• AM objectives and planning to achieve them
4. Support• Resources, Competence • Awareness & Communication• Information & Documentation requirements & Control
PAS 55Elements
5. Operation• Operational planning and control• Management of change• Outsourcing
6. Performance evaluation• Monitoring, measurement, analysis & evaluation• Internal audit• Mangement Review
PAS 55Elements
7. Improvement• Non-conformity & corrective action, preventive action• Continual Improvement
PAS 55Integrated Management System
Enterprise-wide FunctionsPublic
RelationsStrategy & Planning
Stakeholder Management ProcurementFinancial
Management
Integrated Management SystemKnowledge
ManagementRisk
ManagementQuality
ManagementEnvironmental Management
Health & Safety Management
Asset Management
Human Resource Management Marketing Legal &
Compliance
Other M.S.
Asset Management System (ISO 55001)
Organizational Context Leadership Planning Operation Performance
Evaluation Improvement Support
7 Key Elements
PAS 55AM Policy, Strategy and Plans
Asset Management Policy
Asset Management Strategy / Strategic Asset Management Plan (SAMP)
Asset Management Plans (AMPs)
Organization Objectives, Strategic Plans & the Business Plan
Line
of S
ight
What
How &
Why
When &
Where
5Pierce County Public Works (PC PWD)Eight Elements of Asset Management
PC PWD Eight Elements of AM1 Level of Service 2 Condition Measurement3 Inventory 4 Cost Data5 Usage Data 6 Risk Model7 Preservation Model 8 Performance Model
PC PWD Eight Elements of AM
1. Level of ServiceMaintenance & Operations• LOS for M+O+P at activity level
Capital• LOS at system or service level
Data • Coordinate M&O LOS• Influence I LOS• Same P LOS
PC PWD Eight Elements of AM
2. Condition MeasurementMaintenance & Operations• Condition at element level
Capital• Condition at category level
Data • Coordinate P condition
PC PWD Eight Elements of AM
3. InventoryMaintenance & Operations• Inventory at element detail
Capital• Summary of category level
Data• Collect inventory for M&O• Aggregate for P+I
PC PWD Eight Elements of AM
4. Cost DataMaintenance & Operations• Element cost • Supporting• Detail decisions
Capital• Category cost for M+O+P
Data• Collect cost data for M+O• Aggregate for P+I
PC PWD Eight Elements of AM
5. Usage Data Maintenance & Operations• Element use • Supporting• Detail decisions
Capital• Category use • Projected use
Data• Collect use data for M+O• Aggregate for P+I
PC PWD Eight Elements of AM
6. Risk Model Maintenance & Operations• Element risk • Affecting M+O• Priorities
Capital• Category risk • Affecting Pc• Priorities
Data• Coordinate risk model
PC PWD Eight Elements of AM
7. Preservation ModelMaintenance & Operations• Element • Deterioration• O condition
Capital• Category + element • Deterioration
Data• Coordinate preservation • Model for prioritization
PC PWD Eight Elements of AM
8. Performance MeasuresMaintenance & Operations• M+O LOS accomplishment• Efficiency, Quality
Capital• Service LOS accomplishment• Efficiency, Quality
Data• Influence measures between M+O+P
Would a standardized approach to Asset Management be helpful to you?
