ISO 55000

ISPE NJ November 2014

ISO 55000 - Background

PAS55 parts 1 and 2
UK Standard on managing physical assets

Development of ISO standard began in 2010

Pharma incorporated into US TAG (technical
advisory group) through representation from
Genzyme

ISO55000 parts 1-3 released in 2014

ISO 55000 - Background

ISO 55000:2014 Asset management -- Overview, principles and
terminology
Provides an overview of asset management, its principles and terminology, and
the expected benefits from adopting asset management.

ISO 55001:2014 Asset management -- Management systems

Requirements
Specifies requirements for an asset management system within the context of
the organization.

ISO 55002:2014 Asset management -- Management systems -- Guidelines

for the application of ISO 55001
Provides guidance for the application of an asset management system, in
accordance with the requirements of ISO 55001.

ISO 55000 - Asset Management

System - Timeline

Source: IMC2013

ISO 55000 Asset Management

Asset
Anything which adds potential or actual value
Physical
Financial
Intellectual

Asset Management
The Balance of cost, opportunities, and risk
against desired performance of assets to achieve
the organizational objectives
5

ISO 55000
Focused on the value proposition of assets
Scalable for any organizational size
Does not define how, only what

ISO 55000
International Standard for Asset Management
Managing the
Organizational objectives

Aligned with Organizational

Objectives

Asset Management
Objectives
Asset Management
System

Asset
Management

Asset Portfolio

Policy, objectives, and processes

to achieve objectives
Coordinated activities to realize
value in alignment with objectives
Assets that exist as part of the
portfolio which require strategic
asset management
7

Asset Portfolio
Understanding of criticality
Business value proposition
Risk

Definition of value expectation

Design for total cost of ownership
Not cradle to grave but lust to dust

Managing Assets Responsibly

Concept

Scope

BOD

Final Design/
Procurement

Construction

Close-out/ Startup

95% of Life Cycle Costs are determined by engineering decisions made before the plant is even built!
By the way costs to operate and maintain an asset are 60-80% of total Life Cycle Costs,
Still we place too much importance on acquisition costs of assets

Asset Management System

Development of Asset Management Policy
and Directives
In alignment with ISO 55000

Assessment of value delivery

Metrics
Re-assessment of strategy

10

Certification vs. Alignment

Alignment
Standardized approach
Reduced LCC
Safety
Environmental
Stays at business unit level

Certification
Potentially lower insurance premiums
Possible risk if imbedded in quality structure

The BMS Rx Approach

Corporate Policy on Asset Management
Directives for core practices

Asset criticality
Alignment and balancing
Lubrication practices
Storeroom management
EAM utilization and data integrity

Site owned improvement

Common understanding and lexicon
Uptime Elements

Backup Slides