ISO 55000:2014 – Asset Management — Overview, Principles and Terminology
ISO 55000:2014 provides an overview of asset management, its principles and terminology, and the expected benefits from adopting asset management.
ISO 55000:2014 can be applied to all types of assets and by all types and sizes of organizations.
What is Asset Management?
Asset management is the systematic approach of organizations to realize value from their assets. This methodical process typically considers costs and potential causes of risks and weighs them against gains and opportunities. The ultimate goal is to obtain benefits from the assets to achieve the goals set by the company.
Assets are the basis for any organisation delivering what it aims to do. Whether in the public or private sector and whether assets are physical, financial, human or ‘intangible’, it is good asset management that maximises value-for-money. It involves coordinated and optimized planning, asset selection, acquisition/development, utilization, care and ultimate disposal or renewal of assets and asset systems.
ISO 55000
ISO 55000 is a series of international standards that describe the principles for managing all kinds of assets. The three-part series is made up of the following documents:
- ISO 55000:2014 – Overview, principles, and terminology
- ISO 55001:2014 – Management systems – Requirements
- ISO 55002:2018 Guidelines for the application of ISO 55001
According to the IAM, “These three international standards are important not only for their content, but because they represent a global consensus on what asset management is and what it can do to increase value generated by all organizations.”
In addition to outlining the definition and terminology of asset management, ISO 55000 standards can integrate with other major management system’s standards. These include, ISO 9001 for quality management, ISO 14001 for environmental management, OHSAS 18000 for occupational health and safety, and ISO 31000 for risk management.
The ISO 55000 family is also the first management system standard to implement the new ISO Annex SL, which establishes a consistent basis for all management systems, enabling better integration and coordinated monitoring, audit, and certification.
Benefits of Implementing ISO 55000
The implementation of its regulations and guidelines has numerous benefits to any company, whether it operates in the public or private sector. Some of the main benefits of implementing ISO 55000 are as follows.
Better Market Standing
A company that is certified as being ISO 55000 compliant is seen to take its asset management seriously. Companies would see an increase in partnerships and the winning of tenders in the public sector and contracts in the private sector since it is seen as being well-run and credible and reduces the need for due diligence.
Better Risk Management
ISO 55000 allows for the proper prioritization and pre-emptive handling of various risks and risk factors before they become an issue within the company through the understanding an analysis of data.
Better Management with Continuous Improvement
By demonstrating compliance, ISO 55000 improves analysis and reporting, which are key elements when conducting business. It also provides the foundation for improvements to be made consistently from year to year.
Consistent Business Practices with Less Paperwork
Since ISO 55000 is a universal standard it allows for standardization of the asset management system throughout all levels and areas of a company’s business practices. This means that there is better inter-departmental communication and allows the business to function as a whole. It also gives employees a better understanding of their roles and goals. This in turn streamlines the processes of the company, enabling the generation of far less paperwork.
Reduced Product Problems and Lower Costs
ISO 55000 is designed to help companies anticipate problems with the compliance of their product. This means that the problem is foreseen before it occurs and there are systems in place to correct these problems. This along with improved risk assessment can lower production costs and insurance premiums.
Employee Satisfaction
ISO 55000 encourages greater communication and transparency in workplace practices. This includes leadership and cross-disciplinary teamwork. Employees who work in well-planned and systematically-managed environments show greater productivity and an increased sense of job security and satisfaction.
Improved Planning
When implementing ISO 55000, the guidelines are designed to align with existing systems within the company—streamlining their function. ISO 55000 also leads to the improved ability to plan and project a company’s trajectory and growth.
The correct implementation of ISO 55000 leads to an overall increase in productivity and risk management as well as compliance within a company. This in turn lowers the losses that are incurred in the settlement of claims and fines that can be levied against a poorly-managed company.