Scott E. Pepperman Executive Director National Association of State Agencies for Surplus Property

1. Scott E. Pepperman Executive Director National Association of State Agencies for Surplus Property May 2013 ISO 55000 Something New for State & Local Government Asset (Property) Managers

2. “Within the standards development arena, to have the combined perspective of industry, consumers, nongovernment organizations and academia has become more and more important to state and local governments, especially in the areas such as sustainability, clean technologies, energy usages and efficiency, the built environment, water and others” -Ms. Mary C. McKiel, Ph.D. 2013 Chairperson of the ASTM International Board of Directors

3. Areas of Discussion for Today - NASASP Asset Management in State and Local Governments Standards NPMA and ASTM ISO 55000 Summary Questions and Answers

4. THE NATIONAL ASSOCIATION OF STATE AGENCIES FOR SURPLUS PROPERTY -Who is NASASP? -History of NASASP -Purpose of NASASP

5. THE NATIONAL ASSOCIATION OF STATE AGENCIES FOR SURPLUS PROPERTY -Who is NASASP? -History of NASASP -Purpose of NASASP

6. WHAT ARE THE COMMON FAILURES IN ASSET MANAGEMENT AND WHAT IS THE IMPACT OF THESE FAILURES? • Lack of Knowledge – Don’t Know • Lack of Training – Don’t Care • Lack of Standards – Don’t Know and Don’t Care

7. WHAT ARE THE OBSTACLES FOR GOVERNMENT AGENCIES TO IMPLEMENT SOUND PRACTICES AND BUSINESS PROCEDURES IN MANAGING THEIR ASSETS? - POLITICS - COMPARTMENTIZATION - THE WHEELS TURN SLOWLY

8. WHAT WILL IT TAKE FOR GOVERNMENT TO OVERCOME THE OBSTACLES AND MAKE PROGRESS?

9. VOLUNTARY CONSENSUS STANDARDS • A PLAN – ISO 55000 • ADOPTION • TRAINING • BEST BUSINESS PRACTICE • FINALLY – TAKE OUT THE POLITICS

10. The Need for Standards • As emerging economies develop more rigorous business practices to help manage growth, standards around how organizations manage their assets will support international trade by leveling differences in how business is grown and managed

11. Background: Standards Organizations • ANSI – American National Standards Institute • ISO – International Organization for Standardization, European based developer of international standards • ASTM – ASTM International is a US based developer of international standards

12. Standards Development Committees • PC 251 – ISO Project Committee tasked with developing a management system standard for Asset Management • US Technical Advisory Group (US TAG) - ANSI sanctioned US group participating in PC 251 • ASTM E53 – ASTM standards committee for asset management standards, and the ANSI sanctioned host of the US TAG to PC 251

13. ISO 55000 History and Schedule

14. 2000: First three ASTM E53 Asset Management standards published • 2004: PAS 55 published • Winter 2009: BSI proposes PAS 55 as the basis for an ISO Management Systems Standard for Asset Management • Spring 2009: ASTM E53 decides to engage in the ISO Asset Management standards development process • November 2009: ASTM E53 approved as official US Technical Advisory Group (US TAG) by ANSI

15. June 2010: Preliminary Meeting of ISO Asset Management committee in London • September 2010: ISO approval of PC 251, Asset Management Systems • January 2011: First Working Draft (WD1) released • February 2011: US comments on WD1 submitted

16. March 2011: First Official Meeting of PC251 in Australia • April 2011: Working Draft 2 (WD2) released for comment • June 2011: US TAG Face-to-Face Meeting at ASTM HQ in Philadelphia • August 2011: US comments on WD2 submitted

17. October 2011: Second Official Meeting of ISO PC251 in Arlington, VA (hosted by US TAG) • November 2011: First Committee Draft (CD1) for comment released • December 2011: US TAG Face-to-Face meeting to craft US comments at AMP Conference in Bonita Springs, FL • January 2012: US comments on CD1 submitted

18. February 2012: Third Official Meeting of ISO PC251 in Pretoria, South Africa • March 2012: Second Committee Draft (CD2) for comment released • April 2012: US TAG Face-to-Face meeting to craft US comments at Meridium Conference in Jacksonville, FL • May 2012: US comments on CD2 submitted

19. June 2012: Fourth Official Meeting of ISO PC251 in Prague, Czech Republic • August 2012: Planned release of Draft International Standard (DIS) for Ballot • TBD: US TAG Face-to-Face Meeting to discuss and comment on the DIS for Ballot • April 2013: Fifth Official Meeting of ISO PC251 in Calgary, CA • TBD 2013: Final ballot • February 2014: Target date for the release of ISO 55000

20. ISO/PC251 Participating Countries 11. Ireland 12. Italy 13. Republic of 14. Korea 15. Netherlands 16. Mexico 17. Norway 18. Peru 19. Portugal 20. South Africa 21. Spain 22. Sweden 23. United Kingdom 24. United States of America 25. United Arab Emirates 26. Japan 27. France 28. Switzerland 1. Argentina 2. Australia 3. Canada 4. Chile 5. China 6. Czech Republic 7. Denmark 8. Finland 9. Germany 10. India

21. US TAG Participating Organizations E-ISG Asset Intelligence

22. Concepts – what’s new? • Asset • Asset or property? • Asset life • Asset Management • Asset Management System

23. ISO 55000 Definitions • Asset – something with potential value to an organization and for which the organization has a responsibility • Asset System - group of assets that interact and/or are interrelated so as to deliver a required business function or service • Asset = Asset System

24. Asset is the term used around the world • NPMA, ASTM E53 and government entities are adopting the term

25. Asset life is defined as the period from its conception to end of life • Assets often pass through identifiable asset life stages • The description (and naming) of stages can differ for different assets and different applications/organizations • An asset system, through the replacement, modification and/or maintenance of component assets, may even have an indefinite life 

26. Responsibility Period • The “responsibility period” is the period of time over which an organization has accountability for an asset and can be within one or many of the assets life stages • The role of asset management is to maximize value from assets across each of the asset life stages that fall within or in some instances beyond the "responsibility period" of the organization

28. Asset Management Life Cycle • An asset holds continuing value potential to one or more organizations over its life • Asset life does not necessarily coincide with the period over which any one organization holds responsibility for the asset

29. Asset Management • Asset management enables the realization of value from assets • Value realization is achieved through the use of analytical approaches and implementation processes that have similar core characteristics, no matter what the industry

30. ISO Required Management System Definition • Management System – Set of interrelated or interacting elements of an organization to establish policies and objectives, and processes to achieve those objectives

31. ISO Required Management System Definition • These standards describe a Management System for Asset Management • They do not describe processes for the management of assets • ASTM E53 standards cover life cycle functions of the management of assets

32. What’s in it for your organization? • ISO 55000 promises to be a widely recognized and adopted international standard • Assurance that they are doing the right things • Focus is on supporting the mission and objectives of your organization • Realizing value from the organization’s assets

33. What’s in it for you? • Better enable all of us to do our jobs • Increased management awareness of asset management • More “transportable” job skills and expertise • More opportunities

34. ASTM E53.10 Committee ISO Asset Management Activities Officers: Chair: James Dieter, CPPM CF, Sunflower Systems, jdieter@sunflowersystems.com Vice Chair: Scott Morris, Genzyme, scott.morris@genzyme.com Recording Scott Pepperman, Executive Director, National Association Secretary: for the State Agencies for Surplus Property, ExecutiveDirector@nasasp.org Membership Kim Doner, CPPM, SRA International, kim_doner@sra.com Secretary: ASTM Staff Katerina Koperna, ASTM International, kkoperna@astm.org Manager

35. Questions and Answers???

36. Scott E. Pepperman Executive Director NASASP National Association of State Agencies for Surplus Property, Inc. 5 Briarwood Court Mechanicsburg, Pennsylvania 17050 Telephone No. : 717-389-5100 Fax No: 717-795-7594 E-mail: ExecutiveDirector@nasasp.org Web site: www.nasasp.org