T h e U n i v e r s i t y o f S o u t h e r n Q u e e n s l a n d

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ENG8104
Module 1 – Introduction to Asset
Management
Lecture 2

A/Prof David Thorpe

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Topics for this Lecture

• Asset Management Systems

• The Asset Management Standards

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Asset Management System

• A generalised systems framework to
describe asset management tasks
• Supported by a number of sub-
systems
– information systems
– management systems
• Can be represented as a diagram
showing key information and
management requirements
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Diagram - Asset Management

System
Information Link

Plans and Budgets

Programs ASSET MANAGER

Organisation Financial
and Works Management
Management System
Information Link

Decision ASSET Project

Support INFORMATION Management
System SYSTEM System

Operations Maintenance
Asset
Management Management
Inventory
System System

Based on Grigg (1988)

Information Links
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The Asset Management

Standards - 1
• There are three ISO (International
Organisation for Standardisation) for
asset management
• The standards relate to a
management system for asset
management - referred to as an "asset
management system" throughout.
• They work in conjunction with other
Standards related to technical and
other aspects of asset management
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The Asset Management

Standards - 2
• Adoption of the Standards is aimed at
enabling an organisation to achieve
its objectives through the effective
and efficient management of its
assets.
• They provide assurance that those
objectives can be achieved
consistently and sustainably over
time.
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The Set of Standards

• AS ISO 55000:2014 – Asset
management – Overview, principles
and terminology
• AS ISO 55001:2014 – Asset
management – Management systems
– Requirements
• AS ISO 55002:2014 – Asset
management – Management systems
– Guidelines for the application of AS
ISO 55001
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AS ISO 55000:2014 - Focus

• Value - Assets exist to provide value to
organisations and stakeholders.
• Alignment - Asset management
translates organisational objectives into
technical and financial decisions, plans
and activities.
• Leadership (including workplace culture).
• Assurance - Asset management gives
assurance that assets will fulfil their
required purpose.
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AS ISO 55000:2014 –
Systems Approach - 1
• AS ISO 55000:2014 has been previously
referred to in the definitions of “asset” and
“asset management.”
• Another key definition is an Asset
Management System, defined as:
• “a set of interrelated and interacting
elements of an organization, whose function
is to establish the asset management policy
and asset management objectives, and the
processes, needed to achieve those
objectives”
• Many other definitions in the Standard
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AS ISO 55000:2014 –
Systems Approach - 2
• The system should be viewed as a set of
tools integrated to give assurance that the
asset management activities will be
delivered.
• Benefits include:
• Creating an asset management system provides
benefits in itself.
• Top management benefits from new insights and
cross functional integration
• Financial functions benefit from improved data and
linkages.
• The asset management system benefits many parts
of an organisation.
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Elements of an Asset
Management System
Main elements are:
•context of the organization
•leadership
•planning
•support
•operation
•performance evaluation
•improvement
They are discussed in more detail in AS ISO
55001:2014
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Relationship between key

terms of Asset management

Based on Figure 1, AS ISO 55000:2014

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AS ISO 55001:2014
Specifies requirements for:

•establishment
•implementation
•maintenance
•improvement

of the asset management system.

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AS ISO 55001:2014 - Context

Primarily used by:

•those involved in establishment,

implementation, maintenance and
improvement of an asset management system
•those involved in delivering asset
management activities and service providers
•assessors of organisation's ability to meet
external and internal requirements.
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AS ISO 55001:2014 –
Components - 1
1. Context of the Organisation:
•understanding the organization and its
context
•understanding needs and expectations of
stakeholders
•determining scope of the asset management
system
•the asset management system including
developing a SAMP (Strategic Asset
Management Plan).
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AS ISO 55001:2014 –
Components - 2
2. Leadership
•leadership and commitment
•policy
•organisational responsibilities and authorities

3. Planning
•actions to address risks and opportunities
•asset management objectives and planning to
achieve them
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AS ISO 55001:2014 –
Components - 3
4. Support
Resources, competence awareness
communication, information requirements,
documented information

5. Operation
Planning and control, change management,
outsourcing
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AS ISO 55001:2014 –
Components - 4
6. Performance evaluation
•monitoring, measurement, analysis, evaluation
•internal audit
•management review

7. Improvement
•nonconformity and corrective action
•preventive action
•continual improvement
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AS ISO 55002:2014
AS ISO 55002:2014
•provides guidance for the application of a
management system for asset management in
accordance with ISO 55001
•contains explanatory text to clarify the
requirements specified in ISO 55001
•provides examples to support implementation
•used by people involved in the asset
management process.
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AS ISO 55002:2014 - Focus

• Can be applied to all types of assets and by
all types and sizes of organizations.
• Does not provide financial, accounting or
technical guidance
• Sections expand on the corresponding
sections of AS 55001:2014 - provide detailed
guidance for their implementation
• Recommended that it be used in any asset
management or asset management systems
application that applies AS ISO 55000:2014
and/or AS ISO 55001:2014.
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Summary for Module 1 - 1

• Technological assets are important to
the community, the economy and the
environment
• They are the installations, plant,
equipment, knowledge and resources
that support and aid community,
commerce and industry.
• Asset management in the engineering
environment can be considered as
developing, operating, safeguarding and
maintaining technological assets to
maximise whole of life return.
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Summary for Module 1 - 2

• A life cycle, strategic, systems oriented
approach is needed for successful
asset management.
• The AS ISO 55000 set of standards
provide guidance on developing and
implementing asset management
systems which underpin asset
management.