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Aust. AM Collaborative Group (AAMCOG)

Aust. AM Collaborative Group (AAMCOG). An introduction to ISO 55000 “What to do” guide 20th October 2014. Overview. Why Bother? What are the Benefits of ISO 55000? Key Components of the Code How it “fits” in with business processes What does and ISO compliant business look like?

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Aust. AM Collaborative Group (AAMCOG)

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  1. Aust. AM Collaborative Group (AAMCOG) An introduction to ISO 55000 “What to do” guide 20th October 2014

  2. Overview • Why Bother? • What are the Benefits of ISO 55000? • Key Components of the Code • How it “fits” in with business processes • What does and ISO compliant business look like? • How do the key aspects of the Code manifest in a business • Moving from theory to delivering benefits • Case Studies • “Roadmap to Readiness”

  3. Context • My Background: • Utility Industry (esp. Urban Water Services) and • Government (State and Local). • History: • AM in these sectors have evolved from an asset centric practice to a “Whole of business” process for delivering outcomes • ISO 55000 reinforces this process • This evolution has been supported by development of key technical standards such as IIMM:

  4. Benefits of ISO 55001

  5. What are we trying to achieve? • Improved Business Performance through: • Understanding Levels of Service • Ensuring Consistency in Capital Works Planning • Capacity to deliver (CapX and Op X (LoS) • System Integration • Improved O&M Efficiency • Integration between planning and ops • Benchmarking performance • Risk Management • Better understanding of Corporate risks, (incl Planning, Preparedness, response & recovery) • Governance Framework: • Linking organisational objectives to organisational capacity • Measuring organisational performance • Sustainability of the Business outcomes • Condition (and performance) • Asset knowledge

  6. Key Components of the Code

  7. ISO 55000 • What is ISO 55000? • International Standard for development of an Asset Management System • This means a System of Management and NOT an IT application • General Principles: • a) Assets exist to provide value to the organization and its stakeholders…….. • b) Asset management turns the organizational strategic intent into decisions and actions on assets to realize their value……. • c) Strong leadership and an engaged workforce are a key determinant of value realization... (&) • d) Asset management requires a focus on continual improvement”

  8. Scope of 55001 • Organisational Context (Cl 4) • Requirements/expectations of stakeholders (what do they WANT us to do?) • Issues that affect the businesses ability to achieve intended outcomes (What do we have the Capability to do?) • Leadership (Cl 5) • Leadership and Commitment to AM • AM Policy (intent) • Responsibilities/authorities assigned & communicated • Alignment w corporate and strategic goals • Planning (Cl 6) • Setting the Corporate/Strategic goals • Plans and objectives that convert strategic outcomes to business and tactical action at all levels • Identifies and addresses risk • Communication and engagement • Operations (Cl 8) • Control the process to deliver targeted outcomes across all functions (Service delivery, Maintenance, Capital delivery) • Consider how outsources activities are controlled and integrated. • Support (Cl 7) • Provide resources (skills, IT, $) • Maintain or capability (competence) • Performance (Cl 9) • Monitoring, measurement, analysis and evaluation • Improvement (Cl 10) • Suitability, adequacy and effectiveness of AMS

  9. ISO 55000 as a Business Plan ? • Organisational Context: • What is the organisation trying to achieve? • Needs and expectations of stakeholders? • What are our capabilities? • Strategy and Planning: • Leadership and Commitment • Roles/responsibilities across the organisation • Performance Framework; and • Risk Management • Operations • HOW do we deliver outcomes “at the coalface” • Asset Lifecycle, operational strategies, etc. • Support: • Maintaining Capability (Skills, IT. Financial) • Governance Frameworks: • AM Framework: • Performance Management and continuous improvement

  10. What would an ISO compliant business look like?

  11. ISO Compliant Organisation • Organisational Context (Cl 4): • What am I looking for? • Clearly defined understanding and response to: • Statutory obligations (what we HAVE to do), • Stakeholder needs (what our stakeholders WANT us to do) • Business Capacity (what we have the CAPACITY to deliver); and • Industry Trends (what we need to watch in future) • Sound understanding of current and projected levels of service and how these may change over time • A statement of the criteria that drives the businesses AM processes • Where would I find it? • Corporate Plan or Strategic Plan • Customer Charter/Customer Contract • Service Delivery Strategy • Stakeholder Management Plan • AM Policy (intent) • This is the “WHY” we do what we do

  12. ISO Compliant Organisation • Leadership and Planning (Cl 5 & 6): • What am I looking for? • An AM Framework that highlights the businesses INTENT for AM • A governance structure which clearly allocates organisational AM responsibilities; • A process for identifying, quantifying and transparently managing risk • Clear linkages between the INTENT & the objectives at each level of the organisation • Translating strategy into action • Linking levels of service and cost of service • Where would I find it? • AM Policy • AM Framework • AM Plans • Service Delivery Strategy • Roles/ Responsibility Framework • Risk Management Framework • This is the “WHAT” we will do

  13. ISO Compliant Organisation • Operational (Cl 8): • What am I looking for? • Sound strategies for the delivery of operational elements of the AM strategy • Planning, • Capital and Service delivery, • Operations/maintenance; and • Asset disposal) • Understanding links between condition and performance/service capacity • Where would I find it? • Operational Strategies (ideally linked to the AMPs) • Procurement Strategy • Infrastructure Standards • Configuration Management processes • This is the “HOW” we will do

  14. ISO Compliant Organisation • Support and Improvement (Cl 7,9 and 10): • What am I looking for? • HR processes for • Allocating resources necessary for delivering the business targeted outcomes. • Ensuring that the business has the capacity to deliver outcomes • Communicating roles, responsibilities and expectations of staff • A strategy for ensuring that information systems support the business • A performance management framework that ties strategy to functional activities. • A commitment to continuous improvement within the business • Where would I find it? • Org Structure, Governance (Accountability) Framework; roles/responsibility statements • Training Needs Assessment and Development plan • Long term IT/IS strategy • Knowledge Management Strategy • Performance Management Framework; • Quality Management Systems and processes • This “ENABLES” us to do it

  15. How would ISO compliant business deliver benefits?

  16. Realising Benefits • External Drivers: • Improved Stakeholder Confidence and Assurance: • Integrated AM Framework that clearly defines agreed outcomes and outlines how they will be achieved • In the public sector ……It is highly likely that the existing state based provisions for AM will be superseded by ISO 55000. • Internal Drivers: • Improved Business Performance: • Change focus from one of process to outcomes • i.e. are the expectations of our asset base (current and future) sustainable?; • Assist in assessing long term financialsustainability • i.e. optimise the investment in the asset base while also understanding the consequences (and risk) of changing investment and resources and the impact on service outcomes; • Facilitate a review of how AM services are delivered • e.g. are there benefits associated with outsourcing some of our AM functions? If so, what functions are appropriate to outsource and why? How may out sourcing affect our risk profile and financial goals?

  17. Realising Benefits • Internal Drivers (cont.): • Improved Governance: • Prompt a review of current AM implementation and identify opportunities to improve the framework for leadership, management, delegation and performance in the delivery of AM across the organization • Assist the business better define its risk profile and identify how key risks may be managed or mitigated. • Systems and Processes: • The “holy grail” of Asset Management is their ability to transform data into knowledge. ISO 55000 provides a framework for development of processes and information sharing to ensure reliable & sustainable AM. • The new ISO standard provides a tool which could be used to ensure better management of assets and sustainable, efficient and effective service delivery

  18. Case Studies

  19. Transition to ISO 55000 • Case Study 1: • Large Water Service Provider • Seeking consolidation of is AM efforts around ISO 55000 • Strong “Functional” AM Capability but fractured strategic/corporate AM framework • Goals: • Develop a Strategic AM Plan that moves the business toward IS0 55000 • In particular, moving to an “Outcomes” oriented process (not an “Asset centric” activity)

  20. Transition to ISO 55000 • Process: • Corporate Transition guided by its Strategic Asset Management Plan (SAMP) • Typically a SAMP operationalizes corporate strategy; • In this instance, the SAMP operationalizes the AMS itself • Included assessment of key technical standards (e.g. IIMM and PAS 55) • Engaged stakeholders (internal and external) in the process • The process highlighted current practice, gaps and solutions. • Outcomes: • A SAMP which operationalizes the AMS, for which staff have “buy in” and facilitates the businesses moves from an “asset centric” business to more “Outcomes” oriented processes

  21. Transition to ISO 55000 • Case Study 2: • Large Regional Council • V Advanced in their AM understanding and processes • Looking at benefits of ISO 55000 • Goals: • Considering a 2 step process: • Compliance with ISO 55000 as a step before • Accreditation to ISO 55000.

  22. Transition to ISO 55000 • Process: • Comprehensive review of Corporate AM Framework: • AM Policy, Objectives, Leadership • Service Strategy: Service Design, Planning and Delivery • AM Strategy; AM Planning • AM Performance Framework • Developed a Roadmap for next steps: • AM Business Process Mapping • AM Business Plan • Propose: • ISO 55000 Competence Review as a “guide” for Accreditation • Outcomes: • ISO 5500 has reinvigorated AM in the organisation • Generated a great deal of interest and improvement opportunities; • Highlighted strengths and opportunities within the business

  23. Roadmap to Readiness?

  24. Questions?

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