The formal definition of Asset Management in the ISO 55000 standard is “…… the coordinated activity of an organization to realize value from assets”.
This focusses on the value obtainable from assets and their useage, not just ‘managing them’. So it is much more than just caring for assets (maintenance). Similarly it is more than buying and selling assets, as implied by the financial world in relation to management of an investment portfolio. The focus on value creation or realisation is also evident in how we recognise what an asset it in the first place:
“An asset is an item, thing or entity that has a potential or actual value to an organization” and “Assets exist to provide value to the Organization and its Stakeholders“. (ISO55000)
The assets can take many forms – physical equipment and infrastructure, money and credit, or more intangible things like information, reputation or intellectual property. In all cases they are assets because they have, or offer potential, value. And, through asset management (over their whole life cycle) such value can be realised.
The IAM’s “The Big Picture – What is Asset Management?” is a good general introduction. And for further information try www.assetmanagementstandards.com and “Asset Management – an Anatomy” (from www.theIAM.org) .
Firstly, it is not just “professional management of equipment maintenance”. Despite the common re-naming of maintenance as ‘asset management’, this is really not right. Maintenance is asset care, not asset management. The whole life cycle management includes choosing what to buy/build in the first place, how best to use/operate it, care for it (maintenance) and ultimately decommission, replace or repurpose it. Asset Management considers how best to do all these things, in a joined-up way. This involves juggling all the costs, risks, performance and sustainability considerations to maximise the net value to the organisation and its stakeholders. And this multi-dimensional competence is not limited to physical assets either. The skills, processes, tools and best practices in Asset Management apply to both tangible and ‘intangible’ assets – anything that is of value, or potential value, to an organisation.
Asset Management is therefore not just Financial Assets management. Although the financial services industry does indeed juggle costs, risks, performance to maximise net value, it only does so for certain classes of asset. The wider discipline of Asset Management addresses the total organisaitonal capability to optimally manage the full portfolio of different asset types, networks and systems upon which it relies.
To find out more, try some of the ‘taster’ modules of our e-learning programmes at www.assetmanagementacademy.com
Asset Management has been evolving for at least 40 years as a recognized management discipline, The origins lie in two fields, both facing crises and converging on similar conclusions about what needed to change. One root is the North Sea oil and gas industry during the 1980s: the combination of the Piper Alpha disaster (with 187 fatalities) and the oil price crash forced the whole industry to revaluate the business model from the ground upwards. BP and Shell led the way, developing an integrated, cross-discipline view of value-maximization over the whole life cycle of their reserves, production platforms, and infrastructure. Results were spectacular – a 75% reduction in safety incidents within 4 years, a 40% reduction in total operating costs, and 5-10% increase in asset system uptime and performance.
In the same period, the public sector services (especially water and wastewater) in New South Wales, Australia were suffering from a combination of cumulative degradation of core infrastructure (due to a history of short-termism and annual budget focus), rising operational costs, and poor service. The state premier forced private sector disciplines of strategic planning, risk management, and value-based proactive investment, increasingly consolidated as an ‘Asset Management’ business approach.
British Standards and the UK Institute of Asset management developed the first public definition of requirements for good asset management practices in BSI PAS 55 (“A publicly available specification for optimal management of physical assets”). This was an international collaboration, led by John Woodhouse of our company, with 15 countries and 10 industries involved, leading to a worldwide best-seller (outstripping even the popular ISO9000 Quality Management standard). PAS 55 is still a great guide for understanding and establishing good practices, and is available from www.ansi.org
Asset Management ensures that all assets are acquired/created, used, maintained, disposed/renewed in line with delivering the organization’s business objectives. In other words, it forces everyone to focus on real value for money, breaking down departmental silos, reducing short-termism, and resolving conflicting priorities. This yields better integration and coordination, reducing re-work, waste, ‘lost opportunities’, and communication problems. Decisions get made faster and on more robust and transparent value criteria rather than localized self-interests.
Organizations that are applying Asset Management methods show significant reductions in total operating costs (often 20-40% ), greater asset systems performance and customer service (ranging widely from 3%-25% improvement), and much greater transparency, coherence, and credibility in their activities. This raises the confidence of stakeholders such as regulators and investors and also stimulates much greater staff engagement and productivity. An Asset Management transformation program is not easy – it challenges many aspects of what an organization does, and touches almost everyone – but the prizes are enormous, as evidenced by the case studies and validated benefits increasingly reported.
Visit our Case Studies page to see the scale of some of these transformations.
The principles of good practice asset management connect together the worlds of finance, operations, customer service, and engineering. In high-level terms they involve:
Asset Management skills are among the most valuable that you can develop in any career. They are highly transferable and bridge the gap between technical/functional responsibilities and organization/business management. A good Asset Manager can be described as a ‘specialist generalist’ – someone who understands, and can harness, a broad range of concepts, practices, and capabilities, retaining a clear vision of what is worthwhile and why. This involves leadership skills, communication skills, and strategic thinking, as well as the more technical aspects of risk management, life cycle costing, optimal decision-making, information management, change management, performance monitoring, and continual improvement practices.
A good place to start in your learning journey is a Foundation-level training course. This introduces core concepts and the variety of Asset Management subjects in which more specific skills and understanding are needed. Thereafter, we offer a multi-step professional development pathway via Certificate, Diploma, and Masterclass qualifications, with formal recognition via the IAM Qualifications and/or WPiAM examinations. These training options, available as classroom courses, virtual (remote) training programs, e-learning courses, and personal/group coaching options, can all be found at our extensive Asset Management Academy.
For the development of organization-wide competencies, we recommend a systematic initial assessment of current capabilities, to ensure that existing skills are recognized and built upon. Our approach incorporates the IAM Competence Framework for Asset Management (which we helped to develop). This is a structured coverage of the 7 key roles in asset management, at different levels of responsibility, and 28 competency areas, with 128 skills and knowledge elements, that need to be considered for their criticality and value. Building an effective transformation program then involves a blended learning approach, using a mix of education, skills training, coaching, and culture change. This is an area where The Woodhouse Partnership is uniquely experienced and effective. For more information on such options, contact us.
A SAMP is the ISO 55000 name for an Asset Management Strategy. It documents the consensus about the current situation (with respect to assets, context, capabilities, etc), the strategic objectives, and the plans to achieve them. Most importantly, it takes a holistic view of the asset portfolio and the development of the organization’s asset management capabilities. The role of a SAMP is to ensure that organizational direction is translated into practical programs of delivery (top-down alignment) and that operational realities of asset condition, performance, risks, and opportunities are (upwardly) recognized and included in the realistic
The Strategic Asset Management Plan (SAMP) guide, authored by John Woodhouse, has been developed to provide guidance for organizations who manage physical assets, and who wish to put in place or improve an existing management system for asset management. It sets out a practical and pragmatic approach to the development of a SAMP or Asset Management Strategy, that will conform with ISO 55001 requirements and clarify priorities, align stakeholders and deliver the best possible value to the organization. The Asset Management SAMP guide is complementary to ISO 55002 (including the current updates, which expand on the importance and role of the SAMP) and is available to purchase now.
We have detailed more information on how we can assist you to develop a SAMP in your organization here.
SAMP TRAINING COURSE: the Woodhouse Asset Management Academy offers a 2-day SAMP course providing real practical insight into the development of effective strategies for asset management, which is suitable for all levels of asset management experience. Head to our Academy for more information.
In 2002-2008 the Institute of Asset Management (IAM) in conjunction with British Standards Institution (BSI) developed PAS 55, the first ‘publicly available specification for optimised management of physical assets‘. This was led by John Woodhouse of our company, in collaboration with 50 organisations from 15 industry sectors in 10 countries. PAS 55 became an international bestseller, with widespread adoption in utilities, transport, mining, process and manufacturing industries worldwide. it is still a valuable aid to understanding and implementing good Asset Management practices.
In 2010, the International Standards Organisation (ISO) accepted PAS 55 as the basis for development of the new ISO 55000 series of international standards.
ISO 55000 Specifies the overview, concepts and terminology in Asset Management
ISO 55001 Defines the requirements for a management system for Asset Management
ISO 55002 Provides interpretation and implementation guidance for such a management system
ISO 55010 Guidelines for the alignment between financial and non-financial asset management functions
For more information on PAS 55 and ISO 55000 series visit www.assetmanagementstandards.com
ISO 55001 is the requirement specification for an organisation’s management system (for Asset Management), so it is not the basis for certifying an individual person. If you are seeking Asset Management qualifications (e.g. formally recognised Certificate or Diploma) please head to our Asset Management Academy for further information.
For organizations seeking ISO certification of their Asset Management System, our IAM-Endorsed assessment service provides an objective review of your maturity against all the requirements of the ISO 55001 standard. Our recognised expert auditors also provide structured assessments, gap analyses and improvement reviews against all 39 subject areas of the GFMAM ‘Landscape’ for Asset Management (not just the management system elements).
From such an assessment, we offer a uniquely effective process for developing a value-prioritised roadmap to address gaps and exploit improvement opportunities.
Contact us now to find out how we can help your organization achieve ISO 55001 Certification.
The Woodhouse Partnership is distinctively different to conventional ‘consultancy’ service providers.
We do not have ‘juniors’ – only highly experienced subject matter experts, each with over 20 years of personal success in industrial and infrastructure asset management. This means ‘who you see is who you get‘ – direct access to the experts.
We don’t ‘sell’ a pre-conceived, packaged ‘solution’. Every client is different, with a unique combination of existing capabilities, asset portfolio, culture and operating context. So we always provide a way forward that builds upon what is already good, introduce only value-adding elements, create better understanding, integration and alignment. We also always build strong local ‘ownership’ so that the improvements are real and sustained.
Established in 1995, the Woodhouse Partnership has, for over 25 years been at the forefront in developing and implementing best practices in Asset Management. We are trusted advisors to some of the largest organizations in the world, providing support right through to the realization of tangible, validated benefits.
We offer global reach with multi-industry experience, an unrivalled pool of expert consultants and a lengthy catalog of awards and success stories. Most of our assignments come from word-of-mouth recommendations from our many satisfied clients.
Susan Steyn is a seasoned expert with over 30 years of experience in Management, Operations, Business Development, and Supply Chain across diverse industries. Her core focus lies in spare parts management and inventory optimization. Throughout her career, Susan has held key leadership roles in multinational companies such as GE, Dow, Roche, Bayer, Lloyds Register, and Woodhouse Partnership.
With a strong background in strategic leadership, P&L management, and lean manufacturing, Susan has consistently driven business turnarounds and growth. She excels in international global business management and has a proven track record of expanding market presence and building strong client relationships.
As a Six Sigma Black Belt and PMP certified professional, Susan is adept at implementing process improvements and managing complex projects. Her expertise in data analysis, project management, and ERP systems ensures effective spare part management and optimal inventory levels.
Susan’s contributions to various companies include revenue growth, cost reduction, successful software launches, and the establishment of strategic alliances. Her commitment to diversity and inclusion, coupled with her leadership in team building and mentorship, have created a culture of excellence in every organization she has worked with.
Overall, Susan Steyn is a results-oriented leader with a passion for leveraging data-driven decision-making and innovative strategies to optimize spare parts management, reduce downtime risks, and enhance profitability in any business environment.
José Luis cuenta con una experiencia exitosa en multi-industrias públicas y privadas, donde desempeñó cargos gerenciales, líder de aplicación técnica especializada, puestos operativos y en mantenimiento, así como en áreas de consultoría sustentando nivel operativo, táctico y estratégico.
Ha formado parte de proyectos de mejoramiento de gestión de activos, confiabilidad operacional, integridad y mantenimiento en Latinoamérica en diferentes empresas creando valor al negocio con resultados técnicos y económicos importantes.
Facilitador e instructor acreditado en temas relacionados con la gestión de activos, mejores prácticas, metodologías de administración gerencial y técnicas especializadas.
Mechanical Engineer with 31 years of experience. Specialist in implementation processes of activities
associated with Asset Management under the ISO 55001 approach, Implementation of diagnostic
programs and audits of management systems, Specialist in applying reliability methodologies such as
Reliability-Centered Maintenance, risk-based inspection, Cause Analysis Root, Life Cycle Cost Analysis,
Condition Based Maintenance, Failure Modes and Effects Analysis, Mechanical Integrity among others.
He has been an Equipment Mechanical Integrity Engineer, an experienced user of traditional NonDestructive Testing such as Ultrasound, Infrared Thermography, Superficial Techniques, Industrial
He has led and participated in countless applications in the field of reliability and condition monitoring,
with special emphasis on the generation and execution of policies and maintenance plans aimed at
achieving the “minimum total business impact” guaranteeing Safety, Hygiene and Environment
Over his 28 plus year span in the industrial sectors with working technical backgrounds in Project & Construction Management, Asset Operations and Maintenance Reliability Management, and being certified in various courses of study; Damien has gained the knowledge and experience and has had proven successes throughout his tenure in the Oil, Gas, Petro-Chemical and Construction sectors. Establishing his-self in the various sectors, Damien’s first experience and success started in the Construction Sector in estimating engineering. This was the stepping stone for Damien and has paved the way for his passion and continued success in supporting People, Process, and Systems in an organization.
Damien has held positions in local, international and multi-national corporations and comes from a working background in the fields of environmental, operations, project and construction management, operations maintenance and reliability management, planning, supervisory management, and has proven his abilities to succeed in each field.
Rich was an Engineer and Project Manager professional at the New York Power Authority for over 30-years. In addition to being the first Project Manager for the Niagara Project Upgrade, Rich rose to be the Vice President of Engineering having started in Operations Engineering decades earlier. Rich went on to be Vice President, Transmission and Substation at AECOM responsible for hundreds of millions of dollars in design and construction. Rich joined Woodhouse Partnership, North America and participates in aligning organization towards ISO 55000 and many reliability studies supporting DST.
Executive in Operational Excellence, Asset Management and Best Practices in Projects, Operations and Maintenance in the Energy and Industrial Sector.
Consultant, Instructor and International Lecturer on issues related to project management (risk management), operational reliability, strategic management of operations, maintenance, Asset Management in the energy sector (ISO 55001) and Applied Data Analytics.
PMP, CMRP, IAM and CAMA certifications, being recognized by the SMRP in 2019 as CMRP of the Year https://smrp.org/2019-CMRP-Winners.
George has over twenty-five years of experience as a consulting engineer providing design, planning, program and project management, and strategic asset management services for asset-intensive organizations in the Americas, Africa, and the Middle East. His primary focus has been in the public infrastructure sector; as a result, he has intimate knowledge of the assets, processes, and resources necessary to deliver and sustain safe, reliable services to the customers of public asset-owning organizations.
George has assisted organizations with the development of PAS 55, ISO 55000, and GFMAM AM Landscape aligned asset management systems (AMS), has performed gap analyses of their AMS against industry standards and best practices, and has guided them through the creation of strategic asset management plans (SAMPs), asset management plans (AMPs), AM policy and supporting documents. He has undertaken asset risk modelling to ascertain organizations’ capability to sustain their desired levels of service. George has performed asset health-informed lifecycle cost modelling and forecasting capital and operational expenditures over near and long-term planning horizons.
With 30 years’ experience in utilities, oil & gas, transport and other sectors, John is one of the most widely known experts in integrated asset management projects for some of the largest companies in the world.
John is a Founder and Life Fellow of the IAM; he has written 4 books, chaired the development of BSI PAS55 and represents the UK on the ISO55000 committee.
He also led the international MACRO and SALVO collaboration projects in optimised asset management decision-making.