November 29, 2020, 6:29 pm

Articles - Asset Management

What does a good Asset Management Strategy look like?

Written by Sandy Dunn.   

 In an earlier article: Asset Management Strategy vs Strategic Asset Management Plan (SAMP) – A Practical Approach, we recommended that an organisations strategic approach to Asset Management be split amongst two documents:

  • An Asset Management Strategy, which outlines the high level, strategic approach that the organisation takes to Asset Management. In other words, how it proposes to manage its assets
  • A Strategic Asset Management Plan, which contains the longer-term, higher level strategic initiatives that the organisation must take in order to execute its Asset Management Strategy.

Taking this approach results in documents that are shorter in length and are:

  • Aimed at different audiences for different purposes, and therefore more likely to be used
  • Able to be more easily updated, and therefore more likely to be current and relevant.

In this article, we go into more detail regarding what a good Asset Management Strategy document may look like. In another article, What Does a Good Strategic Asset Management Plan Look Like?, we discuss the key elements of a good Strategic Asset Management Plan. 

 

Asset Management Strategy vs Strategic Asset Management Plan (SAMP) – A Practical Approach

Written by Sandy Dunn.   

In dealings with our clients, we have seen Strategic Asset Management Plans (SAMPs) that are upwards of 200 pages long – mighty tomes that are destined to rapidly become “shelfware” and of little value to anybody.

This article suggests a practical approach that results in a SAMP that is both useful and usable.

 

The Vital Importance of Asset Management Objectives

Written by Sandy Dunn.   

Without clear Asset Management objectives, Asset Management Plans will, at best, be less effective than they should be, and at worst, could actually take the organisation in the wrong direction.  In this article, we discuss the vital role that Asset Management Objectives play in the Asset Management Planning process.

 

Meeting Asset Management Stakeholders Needs and Expectations

Written by Janez Marinic.   

How do you make sure that you meet your Asset Management Stakeholder Needs and Expectations?

ISO 55001:2014, the global standard for Asset Management, places great emphasis on making sure that an organisation’s Asset Management System meets the needs and expectations of its stakeholders.  In this article, we will discuss why this is important and recommend a tool that can help you to make sure that you understand what those needs and expectations are and identify the actions that are needed to be put in place to meet those needs and expectations.

Why are Stakeholders important?

ISO 55001 defines a stakeholder as a “Person or organisation that can affect, be affected by, or perceive itself to be affected by a decision or activity” with a note stating that “A stakeholder can also be referred to as an interested party”. Other management system standards including ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Safety) refer to an ‘interested party’ rather than ‘stakeholder’, but the two terms are interchangeable. A common requirement across all of these management system standards is to understand the needs and expectations of stakeholders/interested parties (Clause 4.2). 

Understanding stakeholder needs and expectations is important for two reasons.

First, at a strategic level, the needs and expectations of key external stakeholders are vital inputs into your organisation’s strategic planning process.  Their needs shape the objectives (the “results to be achieved”) that the organisation sets for itself and the strategies and plans that it adopts for achieving those objectives.  Indeed the organisation’s very reason for existence revolves around the need to meet stakeholder’s needs and expectations.  Consequently, your Asset Management System needs to support meeting these needs and expectations.

Secondly, the needs and expectations of stakeholders also shape Asset Management decisions in a more tactical sense.  The very definition of stakeholder tells us why we need to understand their needs and expectations, i.e. we can affect them, or they can affect us, by decisions made and activities performed. Consequently, if we don’t understand and properly manage the needs and expectations of stakeholders at all levels, then we run the risk of not delivering the required value proposition to the organisation.  If some of the needs and expectations of stakeholders relate to compliance with mandatory regulatory or statutory requirements, a lack of understanding or management can potentially result in the risk of having your moral or legal license to operate removed.  Increasingly we are seeing the rise in importance for organisations to have in place robust Environmental, Social and Governance (ESG) practices that meet the community’s moral and ethical expectations and not just meet legal obligations.  The recent incident involving Rio Tinto Iron Ore at the Juukan Gorge caves is just one example of the power of stakeholders to influence an organisation’s reputation and affect the future operations of an entire industry.

 

How do I become an Asset Management Assessor?

Written by Sandy Dunn.   

To become a certified ISO 55001 auditor you need to meet the competences outlined in ISO 17021-5:2013 – Part 5: Competence requirements for auditing and certification of asset management systems. The Global Forum on Maintenance and Asset Management (GFMAM) also provides some guidance in their Auditor Assessor Specification.

 

The New ISO TS 55010-2019 – What’s it about?

Written by Janez Marinic.   

QuestionMark500Finance is an integral part of Asset Management. Asset management is defined as “coordinated activity of an organization to realise value from assets”.  Value can be financial (revenues and costs) and non-financial (benefits and risks) and achieving the balance between these requires coordination and alignment across financial and non-functions in the organisation. One of the key outputs of the asset management planning process is an estimate of the cashflows that are needed to deliver value from assets and to support achievement of overall business objectives.  These cashflows could be operating expenses (OpEx) or capital expenditure (CapEx) as well as revenues that flow from this expenditure.  In many organisations, this coordination and alignment across financial and non-functions is often inadequate. Consequently, ISO/TS 55010 has been produced to provide guidance on achieving alignment across the financial and non-functions of an organisation.

 

2019 AMPEAK Conference - Key Issues, Trends and Lessons from Australia’s Top Asset Management Professionals

Written by Sandy Dunn.   

Each year Assetivity takes part in AMPEAK, the Annual conference of the AM Council, Australia’s peak professional body for Asset Management. The conference is a meeting place for Asset Management professionals and facilities an exchange between a broad range of industries and decision makers.

AMPEAK received a record number of registrations this year, with over 100 speakers, running over three days at the Esplanade Hotel in Fremantle, Western Australia. The audience comprised of individuals from organisations who manage assets across the planning, acquisition, operation & maintenance, and disposal phases of the asset lifecycle. The individuals represented numerous industries such as infrastructure, finance, mining, oil & gas, defence, utilities, facilities, risk & reliability and occupational health and safety.

This year, Assetivity was represented by Sandy Dunn - Managing Director and Gary West – Associate Director, along with Senior Consultant, Stewart Kiely. 

Sandy and Gary presented the following papers, which were both extremely well received and generated a lot of discussion:

  • ‘Asset Management Strategy vs SAMP - Has ISO got it wrong?’ – Sandy Dunn
  • ‘Asset Performance Management - the promise versus reality’ – Gary West

Assetivity has put together a list of the key takeaways gained from the knowledge shared amongst Australia’s top Asset Management professionals at the 2019 conference:

 

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