2/4/2019 ISO 55000, IIoT, and EAM: Putting Together the Puzzle, Part I

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ISO 55000, IIoT, and EAM: Putting Together the

Puzzle, Part I 

By Tracy Smith posted 4 days ago

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This is the rst installment of a two-part series on ISO 55000, IIoT and EAM. 

After human assets, physical assets are a company’s most important resource. They have a huge impact on service
delivery, business objectives, and the bottom line -- manage them poorly and the whole business su ers, manage
them well and they become a cornerstone of value creation. Yet many organizations take their physical assets for
granted, they are content to simply maintain their assets instead of leveraging their capacity to deliver business
value. This represents not just lost potential but poor stewardship of stakeholder interests.

E ective and e cient asset management can transform a business. For instance, by improving asset management,
a major oil and gas company increased equipment availability by 3 percent and saved millions of dollars on
insurance premiums. A food manufacturing company saw maintenance costs go down by 15 percent. A water
services business, one of the largest utilities in the U.S., was able to improve service quality while reducing costs
and risks.

To achieve this kind of value creation, you have to understand that asset management is a puzzle with multiple
pieces. You need all the pieces, and you have to put them together in the right way.

Three major pieces are required to manage physical assets successfully: the industrial internet of things (IIoT),
enterprise asset management (EAM) technology, and a  “management system” approach, such as the one o ered
through ISO 55000. IIoT and EAM technology deliver the information and boost e ciency, while an ISO 55000
management system provides the foundation of business goals, processes, and structure that are needed to run
the operation and create value.
ISO 55000 asset management systems

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When most people hear “ISO 55000,” they don’t think “value”—they think “hassle” and “regulatory red tape.” But
you don’t have to become ISO 55000 certi ed to bene t from a management system approach. ISO 55000 simply
represents a best-practice for managing physical assets in a way that maximizes business value. By understanding
the ISO 55000 approach and implementing it, you can align your organization with internationally-recognized best
practices and increase the e ciency and e ectiveness of your asset management operation. No certi cation
required!

What is ISO 55000?

ISO 55000 is the international standard for good practice in physical asset management. It describes what an
organization must do to maximize the value of its physical assets on a sustainable basis.

Like other ISO standards, ISO 55000 approaches the subject from a “management system” perspective. A
management system is not software. It’s a manual of policies, processes, and procedures that an organization uses
to run business operations in accordance with best practices and the organization’s desired outcomes. Common
examples include occupational health and safety management systems (OHSMS), ISO 14001 environmental
management systems (EMS), and ISO 9001 quality management systems (QMS).

Like these, an ISO 55000 asset management system de nes corporate policy, business goals, organizational
structure, business processes, data standards, and performance measures. It provides the documented and
strategic approach that is needed to e ectively manage a large portfolio of physical assets.

What does an ISO 55000 asset management system look like?

An ISO 55000 asset management system is a holistic program for directing and controlling all aspects of physical
asset management. It unites organizational goals and structure with process, data, technology, and auditing tools
to create an e ective operation.

1. It brings together the whole enterprise.

An ISO 55000 asset management system spans multiple business functions, including maintenance,
operations, storerooms, procurement, and accounting. It lays out clear responsibilities, procedures, and
goals for the whole operation. By doing so, it breaks down silos and gets the whole organization working
together to accomplish asset management objectives.

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An ISO 55000 asset management system brings an organization together to achieve its goals.

2. It encompasses the whole asset life cycle.

An ISO 55000 asset management system governs the whole life cycle of physical assets—from planning and
acquisition to decommission and disposal. Because of this long-term approach, an ISO 55000 asset
management system is an exceptional tool for reducing total cost of ownership (TOC) and increasing the
overall return on assets (ROA).

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3. It aligns the whole operation from exec to tech.

An ISO 55000 asset management system establishes an executive mandate for how the organization’s assets
will be managed. It then works out exactly what this mandate means in terms of speci c objectives,
processes, and performance measures. This top-down approach makes asset management a team player in
helping the organization deliver on its business goals.

Ten bene ts of an ISO 55000 approach to asset management

Taking an ISO 55000 approach to asset management can help any organization, public or private, get more value
from its physical assets. An asset management system can help an organization in the following ways:

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Helps an organization “turn things around” through disciplined

1
practices, long-term planning, and e ective change management.

Establishes an asset management program that is aligned with

2
globally accepted best practices.

Coordinates maintenance, operations, and MRO supply chain

3
activities to maximize e ectiveness and e ciency.

Demonstrates to customers, owners, employees, regulators, and

4 other stakeholders that the organization’s assets are in good
hands.

Provides assurance that an organization’s objectives for its

5 physical assets can be achieved consistently and sustainably over
time.

Enhances customer satisfaction through improved performance,

6
reputation, and control of service delivery.

Improves risk management, energy management, HSE

7 performance, and corporate governance—while leaving a clear
audit trail.

Optimizes return on investment for physical assets, capital

8 projects, and asset management technologies (IIoT, EAM, CMMS,
etc.).

Enables EAM, CMMS, and ERP software systems to deliver

9
thorough and reliable information.

Speeds up improvements in the short term while laying a solid

10
foundation for sustainable success.

The foundation for enterprise asset management

In one word, ISO 55000 is all about process. Process is the foundation of asset management. But process can’t act
alone while being e cient at the same time. It needs technology partners—partners that help to streamline
activities and improve information delivery. Those partners are IIoT and EAM.

Check back in two weeks for the second part of  "ISO 55000, IIoT, and EAM: Putting Together the Puzzle."

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Comments
Srecko Suvajac 17 hours ago

I agree with the bene t of ISO 55000 as a Reliability professional, however I don't see
customers demanding ISO 55000 certi cation like they did ISO 9000 etc back 20 yrs ago. 
Why because they expect products to be available when they want it at low cost.  You would
think that businesses would promote ISO 55000 to help them manager their assets, but I
don't see any CEO caring about this.  So how can we change this business strategy and get
everyone interested?  If CEO's don't have a Reliability Strategy and part of their Hoshin
Plannning how will ISO 55000 ever be a tactical strategy? Food for thought.

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