IMPLEMENTATION GUIDE FOR AN ISO
ASSET
MANAGEMENT SYSTEM
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
IMPLEMENTATION GUIDE FOR AN ISO
ASSET
MANAGEMENT SYSTEM A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
OCTOBER 2016
2
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
PRODUCTION TEAM CLIENT PEB Project Manager
Jason Glasson
PEB Project Manager
Vesa Mannisto
WSP | PARSONS BRINCKERHOFF Project Manager
Chris Britton
Project Director
James Elliott
SUBCONSULTANTS Egis Road Operation
Jean Pohu
Egis Road Operation
Graça Correia
Hyperion Infrastructure Consultancy Ltd
Dr. Mike Gibb
Hyperion Infrastructure Consultancy Ltd
Chris Spong
INDEPENDENT TECHNICAL REVIEWER Danish Road Directorate
Bjarne Schmidt
Any enquiries about this document should be sent to:
[email protected] Tel: +44(0)7837 319 143
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
KEY TO USING THIS DOCUMENT
Visual ‘ags’ are used to highlight sections of particular relevance to each of the three types of readers: POLICY
POLICY
MGR
MANAGER
OPS
OPERATIONS
Advisory link to another relevant section of the document, for further information: GO TO CHAPTER
5
GO TO APPENDIX
3
GO TO SECTION
4.2
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
‘SIGNPOSTING’ FOR DIFFERENT READERS Your Role?
Your Role?
Key Policy Maker
Preliminary assessment stage – assess relevance of ISO 55001
Manager
Operations
Key Policy Maker
Manager
Context
()
Leadership
Planning
()
()
Support
ISO 55001 Elements
Operations
()
Performance Evaluation
()
Improvement
()
Operation
The Journey to Maturity Review current policies
Future objectives/ demand
Review current processes
Review current practices
Review asset knowledge Undertake Gap Analysis Review asset lifecycles Consider options/plans/ resources
Plan/Manage Change
Continuous Performance Review
Decision PointDrive Change
Implement Changes and SAMP
Manage Asset Portfolio
ISO 55001 Specic Actions Engage Stakeholders
Develop a SAMP
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Certication Audit
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
PREFACE THE ARISE PROJECT Following the publication of ISO 55000 in February 2014, the ARISE project (Application to Roads of ISO 55000 using Exemplars) was initiated by the Conference of European Directors of Roads (CEDR) in its 2014 Research Call through the topic ‘Why and How to implement ISO 55000’. CEDR is an organisation which brings together the road directors of 25 European countries, and the funding partners of the current Joint Research Programme are the National Road Administrations (NRA) of Austria, Belgium-Flanders, Finland, Germany, Ireland, the Netherlands, Norway, Sweden, and the United Kingdom. Road Administrations around Europe have been on an evolving journey towards more systematic and holistic management of their assets in recent years. Standardisation in the approach to establishing an Asset Management System (AMS) – in its broadest sense – started with the publication of the British PAS55 specication in 2008. This has now attained international standing through the development of the new ISO standard, built on the PAS55 foundation. CEDR has instigated and supported a number of research and development programmes with Asset Management (AM) as their theme, and in particular established a Task Group (N2) under TD Network Management. In addition, CEDR inherited the results of the ERANET Road II (2010 Research Call) ‘Effective Asset Management’ in 2013. The ARISE project was awarded to an international team of experts from the UK and France, with access to resources in Portugal and Denmark. The team was led by WSP | Parsons Brinckerhoff, with partners EGIS Road Operation and Hyperion Infrastructure Consultancy. ARISE has focussed on producing advice and guidance for road sector organisations considering why and how to implement ISO 55000; more specically, after adopting the approach of ISO 55000, delivering an AMS means using ISO 55001 which is the management System Requirements. This Guide represents its primary published output, based upon examples gleaned from case studies of organisations which are at various stages of their asset management system implementation, and which have specic experience of IS0 55001 or its ‘parent’, PAS55. The project’s aim is to facilitate open and practical dissemination of the principles of asset management as dened in ISO 55000 to as wide an audience as possible, and this Guide performs a key role in that process. The Guide is intended to offer options and advice, rather than a ‘one-size ts all’ solution to establishing a formal Asset Management System that will help organisations to obtain value from their assets. It provides evidence and examples gained from the earlier stages of the ARISE research project, including priorities based on typical costs and benets. The Guide does not contain a detailed way of assessing ‘maturity’, as this can be found in other literature cross-referenced in the document. It does explain the ‘journey to maturity’; along the path of which certication to ISO 55001 is one key milestone. The Guide does not primarily equip those tasked with performing asset management activities with new solutions, but rather explores the reasons for adopting a strategic approach to asset management against the main themes in the international standard, ISO 55001.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
CONTENTS GETTING STARTED THE CONTEXT OF INFRASTRUCTURE ASSET MANAGEMENT 2.1 2.2
THE BACKGROUND OF THE ARISE PROJECT INTERNATIONAL INDUSTRY CONTEXT
4 5
2.3
WHERE ISO 55001 FITS IN
5
2.4
HOW A STRUCTURED APPROACH ADDS VALUE
6
WHY IMPLEMENT AN ISO ASSET MANAGEMENT SYSTEM IN A ROADS SECTOR ORGANISATION? 3.1
BENEFITS OF AN ASSET MANAGEMENT SYSTEM
7
3.2
BENEFITS OF ISO 55001 CERTIFICATION
9
3.3
CHALLENGES TO ISO 55001 CERTIFICATION
13
3.4
SUMMARY AND CONCLUSIONS
14
EXPERIENCE OF ISO INDUSTRY SECTORS
IN DIFFERENT
4.1
GENERAL CONSIDERATIONS
15
4.2
CONTEXT OF THE ORGANISATION
19
4.3
STAKEHOLDER ENGAGEMENT AND COMMUNICATION
22
4.4
LEADERSHIP
23
4.5
AM POLICY AND OBJECTIVES
24
4.6
AM PLANNING
25
4.7
PEOPLE AND TRAINING
26
4.8
DATA AND INFORMATION
27
4.9
RISK MANAGEMENT
29
4.10 IMPROVEMENT AND CHANGE MANAGEMENT
30
4.11 SUMMARY AND CONCLUSIONS
31
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
IMPLEMENTING AN ISO ORGANISATION
SYSTEM IN YOUR
5.1
DEFINING YOUR ISO 55001 ORGANISATION AND ROLES
34
5.2
MAPPING YOUR ISO 55001 MATURITY JOURNEY
35
5.3
IMPLEMENTING THE REQUIREMENTS OF ISO 55001 – GENERAL ACTIVITIES
38
5.4
IMPLEMENTING THE REQUIREMENTS OF ISO 55001 –
5.5
ACTIVITIES FOR POLICYMAKERS IMPLEMENTING THE REQUIREMENTS OF ISO 55001 – ACTIVITIES FOR ASSET MANAGERS
5.6 5.7
39 41
IMPLEMENTING ISO 55001 – ACTIVITIES FOR ASSET OPERATOR
43
SUMMARY – PRINCIPAL CONSIDERATIONS FOR IMPLEMENTATION OF ISO 550001
44
COSTS AND BENEFITS 6.1
INTRODUCTION
46
6.2
CBA ANALYSIS FRAMEWORK
47
6.3
DO NOTHING COSTS AND BENEFITS
47
6.4
TIMESCALE FOR EVALUATION OF BENEFITS
48
6.5
IDENTIFICATION AND ALLOCATION OF COSTS AND BENEFITS
49
6.6
SUMMARY OF POTENTIAL COSTS AND BENEFITS TO ROAD ADMINISTRATIONS
50
6.7
PRINCIPAL CONSIDERATIONS FOR IMPLEMENTATION OF ISO 55001
53
THE JOURNEY TO MATURITY STEPS TOWARD SUCCESSFUL IMPLEMENTATION 7.1
GAP ANALYSIS
55
7.2
CONSIDER OPTIONS/PLANS
56
7.3
PLAN/MANAGE CHANGE
56
WHERE TO LOOK FOR FURTHER HELP APPENDIX APPENDIX
SUMMAR Y OF CASE STUDY FINDINGS OST C BENEFIT ANALYSIS
APPENDIX CRO SS REFERENCING ISO ISO IN A HIGHWAYS CONTEXT
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GETTING STARTED WHAT IS ISO 55000?
WHY SHOULD IT BE OF INTEREST TO A ROAD ORGANISATION?
The International standard for asset management comprises three complementary documents ISO 55000 – Overview, principles and terminology, ISO 55001 – Management System Requirements and ISO 55002 – Management systems – Guidelines for the application of ISO 55001. The standard is aimed at enabling an organisation to obtain value from its assets. It is aimed at enabling an organisation to achieve its objectives through the effective and efcient management of its assets. It offers a structured and well-researched approach to Asset Management (AM) which can be applied whether an organisation already has a mature Asset Management System (AMS), or is just starting its journey to obtain value from its assets.
The Roads sector was perhaps a little slower than other infrastructure sectors to formally adopt the concept of ‘asset management’, even though it may be argued that they had been ‘doing asset management’ for many years. Road Administrations around Europe have been on an evolving journey towards more systematic and holistic management of their assets in recent years. A wide variety of business models are now being adopted by this industry, from a traditional fully in-house arrangement, through a sliding scale of outsourcing of services, to a full PFI/PPP approach. This is discussed in Chapter 3. Standardisation in the approach to establishing an AMS – in its broadest sense – started with the publication of British PAS55 specication in 2008. This has now attained international standing through the development of ISO 55001, the adoption of which can bring many benets to a Roads Organisation. These are explained in more detail in Section 2.4 and Chapter 6. From this point forward we shall refer only to ISO 55001 unless otherwise stated.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
WE ALREADY ADOPT AN ‘ASSET MANAGEMENT’ APPROACH, DOES THIS APPLY TO US?
It is clear that many roads sector organisations – public administrations, contractors, operators and concessionaires – have seen the need to embrace the concept of holistic asset management. Many have re-engineered their business processes accordingly and taken new approaches, for example to the outsourcing of asset management services. Data, and the information systems required to manage them, are widely recognised as key to underpinning an asset management approach. The combination of policies, processes, procedures and methods of working may be seen as an ‘asset management system’, but this cannot be objectively benchmarked unless a standard approach is taken; so, even if your organisation is using an asset management system approach, the adoption of a standard can provide an accepted way of comparing with other similar organisations and benchmarking good practice. In this Guide, you will nd how ISO 55001 views the establishment of an AMS as a ‘journey’. Every organisation starts at a different point of maturity, and has unique challenges in developing further; the point at which a decision to aim for formal ISO 55001 certication will also vary from organisation to organisation, and should depend on a sound internal business case being made.
HOW WILL THIS GUIDE HELP ME?
WHAT IS THE BEST APPROACH TO READING THIS GUIDE?
This Guide is aimed at people working in a roads organisation at a range of levels; Policy, Management, and Operations. You will nd ‘ags’ drawing attention to which section may be particularly relevant to you (see the key on page ii). The Guide draws upon real-world case studies, from a range of countries and industries. This is used to provide you with lessons learned and hints and tips for your own ‘journey’. In developing the Guide, work has been done on costs and benets that, at a broad-brush level, will assist you in making the initial investment decision whether or not to conform to ISO 55001 requirements. It is important to remember that this is not a ‘one size ts all’ approach; what your own organisation needs to do to adopt ISO 55001 and become compliant will depend on a range of factors such as your starting ‘maturity’, and the level of resources available and their competence. You will nd advice on how to navigate round the document, and nd the parts which are most relevant to you, in the ‘Key to using this document’ on page ii. We have adopted a visual style that we hope will help you identify sections and paragraphs of particular relevance to you.
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HOW DO I FIND OUT WHAT TO DO FIRST?
HOW DOES THE GUIDE HELP ME MAKE A BUSINESS CASE? DO I NEED TO READ THE WHOLE GUIDE?
In Chapter 5, you will nd a description of the tasks you may need to go through in establishing an asset management system in a way that is compliant with ISO 55001. It contains practical hints and tips, and these are taken a step further in Chapter 7 which looks at the factors involved in a successful implementation. By explaining the general approach to setting up an ISO 55001 implementation project, the relative scale of costs and benets, the Guide will assist you in constructing a business case. A lot will depend on your starting position, but you can learn from examples from the case studies in the Guide. Ultimately, your business case can only be produced by those with intimate knowledge of the particular organisation concerned. In short, no. We have designed the Guide so that you can focus on sections of relevance to you, and nd the key sections quickly and easily.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
THE CONTEXT OF INFRASTRUCTURE ASSET MANAGEMENT 2.1 POLICY
MGR
THE BACKGROUND OF THE ARISE PROJECT
As a reader of this Guide, you may feel familiar with what constitutes a ‘road asset’, and how your organisation approaches the maintenance and operation of that asset. You may wonder what a standardised ‘asset management system’ (AMS) can add to your organisation and how benets can be realised if you were to do so. Beyond that, you may well be asking the question ‘Why and how should I implement ISO 55001?’ – the question posed by the ARISE project. In this Guide, we have described a ‘journey’ that any organisation with an interest in improving its approach to asset management may join. It is a journey that many in the roads sector are already embarking on, and it is a journey which you can pick up at whatever is the stage of maturity of your organisation. The journey applies whether or not an organisation intends to seek certication to ISO 55001 or not, but it should be noted that this Guidance document focusses on the specics related to adopting the ISO 55000 suite. The ARISE project has investigated a number of real-world case studies and at various points in this Guide we share with you the lessons learned by others, for your benet. In some cases, your organisation may have already encountered the challenges and opportunities described; in others, you will nd inspiration to help plan the next stages on your own journey. One thing is certain; every organisation is unique, it starts from a unique stage in the development of its AMS and has as its ultimate business objectives a unique set of goals.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
The rst questions your organisation should be asking itself are: → Are the most senior levels of management in my organisation committed to the development and implementation of an AMS? → Do we understand the scope of our ‘assets’? → Do we understand the needs and expectations of our stakeholders? →
→
Do we have clear organisational objectives and is it clear how these relate to our asset management processes? Have we checked the competencies of our resources to deliver asset management in a way that optimises the benet to our business and our stakeholders?
More details on how to implement the steps relevant to your organisation may be found in Chapters 5 and 7. GO TO CHAPTER 5
2.2
7
INTERNATIONAL INDUSTRY CONTEXT
The hypothesis adopted at the start of the ARISE project was that the generic approach to adopting a robust and auditable AMS applicable to physical infrastructure, is likely to be common across a number of industry sectors, and countries. From the ndings of our research, which included examples from the energy, air trafc, tunnel operation and highways sectors, this has been conrmed. GO TO CHAPTER
3
We found that, at the time of carrying out the project in 2015/16, ISO 55001 is still a relatively new standard in most industries. That has not, however, stopped a number of organisations, who were already on the journey to obtain asset management maturity, update their PAS55 aligned systems to meet the certication standard in quite short timescales. In our study we found 1 to 4 years was a typical timeframe.
2.3
WHERE ISO 55001 FITS IN
As with any standard which addresses a management system, ISO 55001 does not attempt to prescribe exactly how an organisation should perform asset management – that is, the precise processes and activities that apply to the organisation in question.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Rather, it describes a framework for developing, documenting and continuously monitoring and improving a rigorous Asset Management System (AMS). ISO 55000 is a suite of documents which in this Guide we generically refer to as ‘ISO 55000’: → ISO 55000:2014 (E) Asset management – Overview, principles and terminology → ISO 55001:2014 (E) Asset management – Management systems – Requirements → ISO 55002:2014 (E) Asset management – Management systems – Guidelines for the application of ISO 55001. ISO 55001contains the requirements for conformance against which organisations can be audited, while ISO 55002 provides additional guidelines and explanations which will assist in the development and implementation of an Asset Management System which complies with the requirements of ISO 55001. A cross reference between these key documents and the highways industry context may be found in Appendix 3. GO TO APPENDIX
POLICY
3
From the experience of the organisations analysed in this project we have observed synergies between ISO 55001 GO TO implementation and other ISO Quality Systems including CHAPTER 8 9001, 14001, 18001, and 27001. These synergies exist because there are some common requirements and approaches in these standards regarding general management principles. This emphasises that ISO 55001 does not ‘stand-alone’; with this awareness, organisations could ensure a better management of resources in case they decide, or are contractually required or under regulation to implement several ISO Quality Systems. Identifying synergies between standards can bring bankable benets in terms of audit cost savings when combining audits. GO TO CHAPTER
2.4
6
HOW A STRUCTURED APPROACH ADDS VALUE
ISO 55001 aims to add value to an organisation and in Para 2.2 of the ISO 55000 document it identies nine general areas in which the AMS may deliver benets: a) Improved nancial performance b) Informed asset investment decisions c) Managed risk d) Improved services and outputs e) Demonstrated social responsibility f) Demonstrated compliance g) Enhancedorganisational reputation h) Improved sustainability i) Improved efciency and effectiveness. The following chapters in this Guidance expand on these areas, taking on board lessons learned from the case studies (Chapter 4), describing reasons why to implement an ISOcompliant AMS (Chapter 3) and explore relative costs and benets of adopting the ISO approach (Chapter 6).
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
© Petteri Huoponen
WHY IMPLEMENT AN ISO ASSET MANAGEMENT SYSTEM IN A ROADS SECTOR ORGANISATION? In this chapter, we start by exploring the general approach to establishing an Asset Management System, recognising that many organisations are already in the process of doing that. We then move on to explore why, in the roads sector, it would add value to go on to implement an ISO-certied AMS? This question nds some answers in the following chapters, namely Chapter 4 which summarises the lessons learned from the case study organisations, and Chapter 6 which summarises the ndings of the costbenet review which was carried out with the help of the case study organisations.
3.1
POLICY
MGR
BENEFITS OF AN ASSET MANAGEMENT SYSTEM
ISO 55000 denes an asset management system (AMS) as a set of interrelated or interacting elements which establish policies, objectives and the processes to achieve those objectives in respect of the assets. Design of an organisation’s ‘Asset Management System’ can be done from a number of different perspectives and starting points; each one will be uniquely tailored to the needs and constraints of that particular organisation. What ISO 55000 does is provide in addition a structured framework – a maturity milestone – within which that can be done. At that stage, it can also facilitate benchmarking of one organisation against another. Whatever an organisation’s starting point on the asset management journey, the decision to adopt ISO 55000 as the formal standard against which its AMS will be judged, must be driven by a rational business case. This is explained further in Chapter 5. The comments which follow in this section apply in general to the establishment of an AMS. More specic guidance related to establishing an ISO 55001-compliant AMS are in the following section (3.2).
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Specically in the roads context, preservation of the road network over long term to deliver the expected level of service to road users is the overriding objective of Road Administrations. It requires timely and efcient maintenance activities that comprise, broadly: → Routine maintenance, covering maintenance activities which are undertaken on a regular basis – typically at least every year – and/or with a high degree of certainty as to when they would need to be conducted → Heavy maintenance, covering major repairs and renewals activities which heavily depend on the condition of the asset to be undertaken – signicant capital expenditures are usually associated with these activities (they therefore require planning and an on-going review to determine the best capital expenditure strategy throughout the life of the asset) → Improvements/upgrades. If not planned and documented properly, and with a view to minimising whole life costs, heavy maintenance represents a major risk for any road organisation. Examples include: → Lack of planning will increase the cost of works and the cost of Trafc Management, will disturb the availability of the carriageway and interfere with seasonal constraints to optimise maintenance → Lack of available funds will delay lifecycle investments leading to an increased cost of routine maintenance, severe degradation of the assets which in turn will cost more to rehabilitate → Lack of documentation will increase the difculty of convincing stakeholders that the AM Plan robust, reduce and maintaining organisational knowledge andiswill fail towill support the lessons on-goinglearned asset management process including handback (if applicable). As mentioned above, an asset management system is a set of interrelated and interacting elements of an organisation, whose function is to establish the asset management policy and asset management objectives, and the processes, needed to achieve those objectives. In this context, the elements of the asset management system should be viewed as a set of tools, including policies, plans, business processes and information systems, which are integrated to facilitate delivery of organisational objectives by obtaining value from the assets. As previously stated but repeated for clarity, ISO 55000 identies nine general benets areas which implementing a robust Asset Management System, developed through a step-by-step documented process: → Improved nancial performance → Better-informed asset investment decisions → Better management of risk: reducing nancial losses arising from failure of an asset, improving health and safety → Improved services and outputs → Demonstrated social responsibility → Demonstrated compliance: transparently conforming with legal, statutory and regulatory requirements
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
→
→ →
Enhanced goodwill and reputation: through improved communication, customer satisfaction, stakeholder awareness and condence Improved organisational sustainability Improved efciency and effectiveness
3.2 POLICY
→
MGR
BENEFITS OF ISO 55001 CERTIFICATION
There are basically two drivers to develop an AMS into ISO certication: → Either a business decision; or A contractual obligation.
Of those organisations we considered which formed our case studies and which are aiming for ISO 55001 Certication; some are driven by a contractual obligation and others by a business decision, and alignment with their client objectives. The relevant requirements of the ISO 55001 Standard provide a framework for the asset management process and organisation. While not claiming to be a ‘best practice’ guide, the standard ensures that an organisation’s AMS contains all the key components, structure and accountability that would be expected from a formal quality-assured approach. As a starting point on the road to certication, ISO 55001 stresses the need for the organisation to understand wider context of how its assets contribute to delivery of its objectives, as well as the needs and expectations of stakeholders. The‘gaps’ concept of maturity the organisation in respect of asset management will determine the it needs to ll,ofand thus the actions it needs to take. This is described further in Chapter 5. Application of the standard may, arguably provide more benet to a less mature organisation, but the extent of the actions will be greater. The standard describes in some detail the importance of having the right ‘support’ in place (resources and competencies). This means roles, responsibilities, authorities and identify asset management resources and competences have to be formally identied. It then enables the organisation to determine that the scope of the asset management system is correctly dened and documented. In addition, good management practice such as continual improvement is required. Importantly – and this is a subject we will often return to – the organisation, led from the top and in particular by the General Manager and the Asset Manager, is required to demonstrate leadership and commitment, to, among other things, develop asset management awareness and communication across the organisation, and implement internal and external relevant processes.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
For any organisation, be it a public body or a private Operator or Service Provider, if it has already been ISO certied in a number of domains (ISO 9001, ISO 14000…) the step up to ISO 55001 is incremental. The potential overall savings of adopting a structured AMS have been estimated by one respected governmental body in the UK (CIPFA)1 at around 5% for the highways sector. In the ARISE project, we developed a broad-based model for evaluating costs and benets against the main elements of ISO 55001, and this is described in more detail in Chapter 6. The model was used to analyse feedback from the project case studies. GO TO CHAPTER
6
Combining ISO standards can enhance an organisation’s ability to become more efcient through common continuous improvement. Savings can also be made in the direct cost using existing documentation and knowledge as well as through employing external auditors, through the efciency of carrying out more than one audit on the same visit. The standard is not a universal system for all organisations, but rather a structure for a specic management system that must align with the needs, requirements, and objectives in each case. While this standard can be applied to both tangible and intangible assets by all types and sizes of organisations, it is most commonly applied to managing physical assets. Benets can also start to be realised through the implementation of the Standard even before the nal certication takes place.
© Anthony Cullen
1
Local Authority Transport Infrastructure Assets – Review of accounting, management and nance mechanisms, CIPFA (UK), 2008
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Beyond operating an asset management system, there GO TO are numerous benets in being certied to ISO 55001. CHAPTER 4 From evidence gathered in the Case Studies in Chapter 4 and Appendix 1, we have suggested a possible list of GO TO benets relevant to an organisation managing its assets APPENDIX 1 through ISO 55000: → Formal assurance that the organisation is in line with Industry best practice → Enhanced condence from regulatory authorities that assets are being managed in an → →
→
→
→
→
optimal manner Strength in negotiating position with regulators during settlement discussions An endorsed asset management approach for parent companies to showcase as well as learn from Added condence to key stakeholders that a robust approach is in place to manage their network, including (where applicable depending on the industry and in the case of PFI/PPP contracts, contractual context) the owning Authority, any Government Regulator, the general public, any Concessionaire and Operator’s Boards, any Lenders, the Lenders’ Technical Advisors, and potential investors An opportunity to generate answers and roll out of asset management training in parallel An opportunity to integrate different parts of the organisation and explain their role and integrate with other organisational departments in the context of asset management A qualied third party auditor reviewing systems and procedures providing an external perspective on the effectiveness of asset management on the road network
→
→
Added clarity in the division of responsibilities with regards to asset management between Owner/various integrating parties A framework and opportunity for reviewing and continually improving the current asset management system.
To weigh against these benets, for most organisations, implementing an AMS compliant with ISO 55001 represents a signicant investment (see Chapter 6 for more on the specic Costs & Benets associated with an ISO-compliant AMS). Now reecting more specically on the evidence given by the case study organisations and also from experience, we can draw the following lessons. Initial costs of adopting a new system are mainly due to the fact that, in road organisations, there is a lack of ‘AM culture and experience’ at the top management level. Chapter 4 explores the experiences of each case study organisation, and lessons learned that provide useful learning points for the roads sector.
GO TO CHAPTER
6
GO TO CHAPTER
4
On top of that and also because of that, the budget for AM purposes is, in most cases, insufcient to fund the resources (human and nancial) necessary to implement all the required processes and to integrate the complete and necessary set of asset data and information for the decision making process.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
The signicant investments necessary to implement an AMS compliant with ISO 55001 are needed mainly for: → Having the necessary qualied and competent human resources to Plan, Check and Do everything that the AM end-to-end process requires → Implementing an effective AM communication process between the relevant stakeholders → Implementing a risk based approach for all AM decisions → Implementing the AM’s IT supporting tools → Supporting the actions (repairs and maintenance works) that the AM processes will identify as necessary, considering all Lifecycle Cost (LCC) aspects and Contract requirements. It seems appropriate to believe that, if an organisation has already invested (or plans to invest) relevant resources to implement such AMS, it should take the less expensive course of action on that process, that is apply for the ISO 55001 certication? For a road organisation, whatever the source of drive towards the implementation of an AMS, compliant with ISO 55001 (business perspective, or contract requirements perspective), this certication provides the structure for an effective system relevant to the organisation and will represent the evidence of that achievement. That evidence (ISO 55001 certicate) will be a signicant and positive performance message to the road market, since it will be given by a recognised qualied third party auditor. The perspective of the certication depends on the Road sector organisation: Road Authority, Motorway Concessionaire or Maintenance Operator. → Road Authority, focusing on Policy → Concessionaire, focusing on asset monitoring and performance, and also on delivery when the Operator is only in charge of routine maintenance. → Operator, focusing on the actual delivery of asset management as opposed to monitoring of performance → Supply chain? Road Administrations are less exible to move on to certication or even may not be attracted to this type of standard because they have to deal with a number of different contractors. The benet of certication increases with the degree of involvement of the Road Administration, on a sliding scale (see Diagram 1 in Section 4.2) between carrying out the whole maintenance using in-house resources to complete outsourcing. For a Public Road Administration/Asset owner managing their supply chain through a performance contract, benet could be marginal, essentially by having reassurance that their contractors are wedded to it, however, this could be useful for structured/best practice approach.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
OPS
It is important to note where asset owners use a supply chain to deliver their maintenance operations that certication applies to the whole asset lifecycle process. Strictly, it is assumed that a single organisation is responsible for the whole AMS and only that owner can gain the certication. An outsourced activity such as operation is only part of the whole picture, so such an operator could not usually full the requirements for ISO certication unless they had responsibility for everything including determination of every lifecycle stage and associated activity. Thus, while there is an unwritten assumption in ISO 55000 that it will be the asset owner which drives the adoption and certication process, in some cases an outsourced entity may take the lead. This can vary country-by-country, and organisations should check with their national accreditation body (eg UKAS). In eny event, outsourced supply chain partners must be engaged with the organisation leading the accreditation as appropriate to ensure that their contribution to achieving the outcomes fully complies with the AMS.
3.3 POLICY
MGR
CHALLENGES TO ISO 55001 CERTIFICATION
Just as there are benets, there are a number of potential challenges to an organisation in pursuing certication to the ISO 55001 standard, including: → Short term contracts do not incentivise long term asset management approach. Benets not realised in short term or not wholly realised by party undertaking ISO 55000 → Certication to the Standard is (generally) not yet a contractual, statutory or regulatory requirement in most countries, therefore ISO 55001 certication must prove to be a sound investment for the organisation(s). This however could change as governmental asset owners consider the benets of requiring the standard to be met by its agents and suppliers → The cost of maintaining and training in-house staff implementing and continuing to meet the requirements of the Standard → Direct costs of preparing for and undertaking an audit, including fees for external auditors → Limited availability of resource due to other activities occurring within the business → Continued dedication to maintaining the requirements of the standard after the initial accreditation process → Reputational risk if the organisation(s) fail to achieve the certication from an external auditor on the rst attempt or subsequently lose certication → Perception of short-term nancial impact of initial certication: the benets of such process are normally noticeable by road organisations only over a medium/long term. In the short term, implementing an AM system can be seen as expensive and complex, particularly if senior management do not buy into the principles of asset management.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
3.4 POLICY
MGR
SUMMARY AND CONCLUSIONS
Depending on the starting point of maturity within an organisation, the options are either: → Start developing an AMS with general reference only to ISO principles → Change the objectives of the AMS under development to become ISO 55001-compliant, or → Re-engineer the existing AMS to meet ISO 55001 requirements and seek compliance. When deciding whether to seek ISO 55001 certication, an organisation should ask itself the following questions: → Does the top management demonstrate leadership and commitment to manage the assets optimally over their lifecycle → Can achievement of the organisations objectives be facilitated through the assets → Are both an AM policy and objectives established? → Are the processes required to achieve the AM objectives, in place? → Is the existing asset information (inventory and condition data) accurate and organised? → Are there efcient existing management information systems already in place to efciently assemble, manage, analyse and use asset data? → Does the organisation have documented processes and procedures in place to specify how organisational objectives are aligned and converted to asset management objectives and the role of the asset team and the AMS in supporting this → Do all parties to the asset management process (Owner, Service Provider, Concessionaire or Operator) communicate efciently regarding AM? → Are the contracts with external service providers and contractors aligned with the organisation’s overall asset management objectives and in supporting the AMS? → Does the top management recognise the need to improve communication and interaction across functions and are there the systems and processes to do this? → Are the AM processes cross-functional and equivalent for all asset groups? → Are the assets managed in an integrated manner, based on lifecycle considerations over a long-term and sustainable approach to decision making? → Is there a framework in place for the identication, understanding and integration of the many technical standards, codes, guidelines and best practices that affect AM? → Is the asset value measured, which may be in cost terms or by using other metrics such as life-expiry?
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EXPERIENCE OF ISO IN DIFFERENT INDUSTRY SECTORS In this chapter we summarise the case studies, in order to ‘signpost’ key lessons learned for the different readers of this Guide. When reference is made to the different parts of the standard, it should be remembered that ISO 55000 is the overview, while ISO 55001 sets out the detailed requirements against which audits are carried out.
4.1 POLICY
MGR
OPS
GENERAL CONSIDERATIONS
Our detailed case study investigations involved eight organisations from four different industry sectors (utility, public urban transport, road and airport services). It enabled us to examine relevant experience from organisations that were at different stages during the ISO 55001 certication process. Some of the case study organisations were only committed in principle to ISO 55000, and had yet to make a nal decision on whether to seek certication. The organisations surveyed and the relevant industry sectors, are presented in Table 1. It is worth noting that a large proportion of these organisations are listed as ‘Not Currently’ or ‘Not at Present’ going for ISO status although several of these do have plans in place to achieve future ISO certication as a future goal.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Table 1 – Summary of ARISE Case studies Company name
Country
FINGRID
Finland
Information date
Industry sector
October 2015
Utility (Electricity transmission in highvoltage)
Not currently (planned for 2016).
Certication status
PAS55 certied since 2011.
Surface Transport For London (TfL)
United Kingdom
November 2015
Public Urban Transport
Not currently (planned for 2017).
M25 Connect Plus (CP)
United Kingdom
January 2016
Road
Not currently (planned for spring 2017).
Highways England (HE)
United Kingdom
January 2016
Road
Not at present, but Licence requires ‘AM consistent with ISO 55 ISO 55000’.
Balfour Beatty United Mott MacDonald’s Kingdom – Area 10 (BBMM)
January 2016
Road
Notcurrently.
National Air Trafc Services (NATS)
United Kingdom
January 2016
Airport services
Yes, since 2014. PAS55 certied since 2011.
ASFINAG Service GmbH
Austria
January 2016
Road
Notcurrently.
Egis Road and Tunnel Operation Ireland (ERTO)
Ireland
March 2016
Road (urban tunnels)
Not currently (planned for the end of 2016).
PAS55 certied since 2014.
The questionnaire sent to the selected organisations was organised by themes to enable cross-referencing to ISO 55001 requirements in order to facilitate the analysis process, such as: → Context of the organisation → Stakeholder engagement and communication → → → → → → →
Leadership AM policy and objectives AM planning People and training Data and information Risk management Improvement and change management.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Table 2 shows the correspondence between the questionnaire themes and ISO 55001 requirements. We deliberately designed the questionnaire this way round, as most organisations have a level of asset management underway already and would feel comfortable with these themes, and so then to reference them to the relevant parts of the standard. Following the case studies, and shortly before the conclusion of the ARISE project, we became aware of a Highway Authority which had successfully achieved ISO 55001 accreditation in January 2016, and was probably the rst in Europe to do so. This Authority, Durham County Council in the UK, subsequently gave us information that, while not part of the formal case study analysis, has been included in Appendix 1 for information. Their feedback has been helpful in conrming some of the conclusions and advice offered in this Guide. We have presented in the following sections the key aspects ‘on the road’ to ISO 55001 certication according to the same format already applied in the questionnaire. This is based not only on the information collected under the scope of this project, but also on the AM experience of the project team and other published papers. Table 2 – Correspondence between ARISE questionnaire themes and ISO 55001:2014 requirements POLICY
Questionnaire themes
ISO 55001:
Context of the
4.1
Ownership of the public road network is with
organisation
4.3
governmental organisations, but the extent of outsourcing asset operation and delivery varies widely across countries.
2014 clauses
4.4
Highways context – examples
8.3
The scope of highways assets on a network is very large, and in different contexts the scope of the associated AMS is found to vary among road administrations – even if an AMS exists.
Stakeholder engagement and communication
4.2
Our research shows that the effective engagement of stakeholders on a road project AM relies not only on having an effective communication process, but also on the ability and willingness of different organisations to align strategies and objectives.
Leadership
5.1
Our research conrms the central importance of obtaining high-level ‘buy-in’ by senior decision makers in the Highway asset-owning body, project sponsor and also within the supply chain/ implementors.
5.3
AM policy and objectives
5.2, 6.2.1
Our research shows that the existence of an AM policy and AM objectives on road businesses seems to be essentially triggered and controlled by Contract requirements or Road Authority, than by business analysis/evaluations.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Questionnaire themes
ISO 55001:
AM planning
6.2.2 (a) to (j)
2014 clauses
8.1
People and training
7.1 7.2 7.3 7.4 8.3
Data and information
7.5 7.6
Highways context – examples Our research shows that AM planning is an activity performed by all the organisations, at different levels of detail, even if it has different characteristics and it is mainly ruled by business needs. ISO 55001 sees this as part of the ‘Support’ needed for the AMS. The rst three elements of this relate to people and communication, and in particular competency requirements. This is a continuous process linked to business improvement. Importance of complete and current inventory of assets; had been well recognised by many Road Administrations. Deciding what asset condition surveys on the road network are required; most Road Administrations have good technical expertise, but is the strategy optimised for business outcomes? Information Systems including Road databases are established inthe many countries, theywell ‘t for purpose’ in AMS context? but are Issues of data quality are often not adequately addressed.
Risk management
6.1
Improvement and change management
8.2
6.2.2 (k)
9.1 to 9.3 10.1 to 10.2
Most highways organisations now adopt some form of risk-based approach to managing their assets. The question is, whether this approach is robust and satises the needs of ISO 55001 and associated Standards such as ISO 31000. Most highways organisations use some form of Business Management System which includes these aspects; some go further and adopt a Quality System such as ISO9001. ISO 55001 is complementary to such systems.
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4.2 POLICY
CONTEXT OF THE ORGANISATION
Formerly PAS55 and, since 2014 the ISO 55000 standards, have increasingly become of interest to owners of complex and large asset portfolios, because other relevant organisations have implemented a PAS55/ISO 55001 compliant AMS and gone through certication, either on their own volition, or imposed by contract requirements. Also the importance of good asset management is increasingly understood by the Industry. Rightly, though, a degree of caution is expressed by those organisations until they see a clear benet that exceeds direct costs of going down that route.
Medium/large organisations which have relevant public participation and/or organisations which perform services over complex public owned assets portfolios, have become more aware of the impact of a performing AMS. This new awareness has been mainly implemented by asset owners, through: → Tender rules → Contract requirements → Contracts management/follow-up/supervision. The eight organisations which responded to our call for case studies under this project are at very different stages ‘on the road’ to implement an ISO 55001 compliant AMS. Only one has already implemented ISO 55001. They are either: → Large Public/Public-Private organisations (example: TfL – Surface Transport For →
→
London), or Private organisations under demanding Contracts/Clients (example: Connect Plus), or Organisations dealing with large and complex asset portfolios (example: Connect Plus, Egis Road and Tunnel Operation Ireland-ERTO).
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
MGR
OPS
From the AM perspective one key characteristic of many road concession contracts is that the AM process is not under the responsibility of a single organisation. Also, an external organisation (rather than the asset owner) might only be responsible for part of the asset lifecycle. In most cases, the asset owner/concessionaire/operator is not in charge of all AM activities and the certication of the end-to-end AM process may require the agreement of two or three organisations stakeholders of that decision (eg grantor, concessionaire, operator, etc). These delivery responsibilities are shown in Diagram 1. Because no two organisational or contractual situations are the same, it is helpful to view this as a ‘sliding scale’ of responsibilities. This sliding scale would need to be reected in the overall asset management systems adopted by the respective organisations, which it is then necessary to map onto ISO 55001 if that is adopted as the ‘guiding standard’.
Diagram 1 Delivery Responsibilities of the Asset Management Organisation Asset Owner vs Operator – ‘Sliding Scale’ KEY
Government sector (blue)
Private sector (yellow) ‘Owner’ functions
‘Owner’ functions
‘Operator’ functions
‘Operator’ functions
Typically
Typically
Typically
Typically
Governmental organisation responsible for owning and operating publicly-owned road assets:
Governmental organisation responsible for publicly-owned road assets, retaining Owner functions:
Public-Private Partnership (PPP) contract arrangement for road assets where:
Governmental organisation ‘light touch’ ownership:
→ → → →
sets policy & standards sets budgets monitors performance all asset operations inhouse
→ → → →
→
sets policy & standards sets budgets awards contracts monitors performance
Devolves increasing amounts of Operator functions to private sector while retaining some asset operations inhouse: →
Government owner/ commissioner sets policy & → standards → approves nancial model/heavy maintenance cost model
→ →
20
makes annual payments monitors performance
Private road operator → determines short/long term asset strategy → → sets budgets → performs many asset operations sub-contracts some → asset operations
sets policy & standards
Private sector organisation providing full range of asset services for roads (under concession contract): →
→
→
contracts-out part of asset operations to private sector contractor(s)
→
→
determines short/long term asset strategy performs all asset operations sets budgets (eg based on tolls)
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Despite the different business perspectives, such agreement between asset owner and service providers, concessionaire or operators will be easier to setup and implement if all AM requirements are clearly dened and established under ISO 55001 principles at the tender phase.
Given the complexity and degree of outsourcing in many road-asset owning organisations, it is tempting to consider the possibility of only making parts of the AMS compliant; this is not possible under the approach adopted in the suite of documents that form the organisation that has decided, or needs to be certied under ISO 55001. This can be an initial step. It can be problematic getting the whole scope certied at once and it involves more resource and risk. Also issues when asset management system ownership is divided up between renewals, O&M and improvements. This is not the intention or the spirit of ISO 55000 standard. In the guidelines for application of the standard (ISO 55002) it is clear that the whole end-to-end process forms GO TO END the AMS and therefore becomes the scope of the system OF SECTION 3.2 being matched to the requirements of ISO 55001.
In the road sector an organisation moving towards the implementation of an ISO 55001 compliant AMS, should consider including in its outsourcing contract/tender requirements, the provision of strong evidence not only of the relevant maturity of an existing supplier but also of its business management maturity and performance culture. Since certication will be sought by the organisation responsible for the asset management overview and system, it will be up to that organisation to ensure that suppliers make a relevant and consistent contribution to meeting their organisational objectives, and thus also contribute to the successful implementation of the AMS. A move towards ISO 55001 compliance will be understood by the market as a clear message that “Our organisation wants to increase the value for money from the assets under our responsibility, through an effective and efcient AMS that provides assurance that the existing objectives can be achieved consistently and sustainably over time. We are reliable asset managers!” If your organisation is in that situation, congratulations! You have already realised that asset management has a strong impact in your business model.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
4.3 POLICY
STAKEHOLDER ENGAGEMENT AND COMMUNICATION
Effectively engaging and communicating with stakeholders is one of the most important aspects of the AMS. It is also a crucial element within ISO 55001, and a vital input to developing a Strategic Asset Management Plan (SAMP).
MGR
The effective engagement of stakeholders in a highways AMS relies not only on having an effective communication process, but also on the ability and willingness of different organisations to align strategies and objectives.
Implementing an effective communication process within an organisation and with the organisation’s stakeholders is not an easy task, but needs to be done if you want to ‘harvest’ the AMS benets.
For the wide rangeoften of organisations involvedand in road maintenance and projects, their business models differ completely, the communication process between stakeholders is not yet fully adapted to and in line with ISO 55001 principles. It is still a work in progress.
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What is clear however is that an AM communication process will be effective if: → It ensures a common understanding, between and within all stakeholders of an organisation, on: → What an AMS is, its purpose/objectives and the necessary resources for its implementation and success? → How it could impact the performance of the project/business, its scope and objectives? → What are the expected roles/contributions of everyone within the AMS for it to be successful? A by-product of success in this area is that organisations could prot from the effectiveness of team cohesion, involvement and alignment toward common objectives which: → Facilitate/promote cross functional working → Allow an updated perception of stakeholders’ needs and expectations → Contribute for an efcient change and risk management processes → Allow the gathering of accurate data/information for AM purposes.
4.4 LEADERSHIP Leadership has a strong impact on how the organisational culture is built, its type and if it supports the delivery of good AM. POLICY
Although the quality of an organisation’s leadership, experience and competence on AM are not aspects easy to perceive from answers to a questionnaire, it is a key factor, not only for the implementation of an AMS but also for its continued successful operation.
MGR
From the case study analysis of the case studies we concluded that the eight medium to large organisations have all planned their investment in AM aspects of their organisational structure. This alone will not guarantee that AM is considered at all levels of an organisation so it is important to also consider whether the existing leadership can demonstrate business management competencies and if they cover all competences which include AM aspects. Even in road and highway organisations it should not be assumed that there is AM awareness at Board level. This aspect was identied in this project as a critical success factor.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Often the lack of AM competences at a managerial level is only identied by organisations as a problem in the medium to long term, when negative indicators are achieved, or the positive results are rare or inexistent and when it takes longer to change.
4.5 POLICY
MGR
AM POLICY AND OBJECTIVES
The existence of an AM policy and objectives in the road service industry seems to be essentially triggered and controlled by contract requirements, rather than by business analysis/evaluations. Road-owning organisations (mainly public bodies) are more likely to have a top-down set of policy objectives driven by stakeholders and the general public. It is likely therefore that organisations that are contractually obliged to have an AM policy, strategy and coherent objectives for the complete AM end-to-end process, are working on those aspects, or have them already in place. The percentage of organisations that have invested in, or are investing in deciding to implement an AM policy and strategy that could make their business more protable, without being forced to do it by contract, is still marginal. In order to establish an AM policy and strategy and objectives, an organisation should also evaluate: → The relationship between the AM policy and objectives and the organisation’s overarching corporate policies → That the AM policy and objectives are adequate for the purposes of a protable business, without neglecting the compliance of the applicable regulations → If the AM policy and objectives are written in a way that is clearly understood by all the participants in the AMS, including the denition of how the actions of each individual in the organisation’s structure will contribute towards its achievement/success; setting goals that are relevant at each level in the organisation is important, but should retain transparency of how they link high level objectives → If the organisation has the necessary resources and competences to achieve the dened objectives.
By following the main principles of ISO 55000 standards for an AM policy – consistency, appropriateness, commitment, framework and communication – together with an aligned strategy and objectives, any organisation working in the road business (Grantor, Concessionaire, Operator, Contractor, etc.), should be capable of maximising the value that the assets provide in meeting the stakeholders’ and asset owners’ aspirations and objectives.
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4.6 POLICY
MGR
AM PLANNING
Within this topic it is important to identify the differences between the concepts of AM strategic planning and AM planning. According to ‘An Anatomy of Asset Management’, version 3 – published by the IAM, December 2015): → Strategic AM planning aims to establish AM objectives and develop the AM strategy, for example, the processes for determining long-term renewals, enhancement and maintenance work volumes and associated risks and costs to meet the AM objectives. It is usually undertaken as part of the overall organisational strategic planning process. A key document produced at this stage is the SAMP. → AM planning concerns the activities to develop the AM plan(s) that specify the detailed activities, resources, responsibilities, timescales and risks for the achievement of the AM objectives. It follows on from the strategic planning process. What was found from the case study analysis was that AM planning is an activity performed by all the organisations, at different levels of details, even if it has different characteristics and it is governed by different business needs.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Regarding strategic AM planning, the case studies showed that this is something that only the organisations already certied, or on the road to certication, have or are implementing.
4.7 MGR
OPS
PEOPLE AND TRAINING
Because it is people that perform the asset management function on the ground, their knowledge, competences, experience, motivation, teamwork capacity, alignment with objectives and attitude (proactive/passive), have a huge impact on the AM outcomes. The conclusions of this project showed that human resources are a key area of concern of the participating organisations, because mainly those who already have the ISO 55001 certicate, or are on the road to the certication, are aware of the requirements for strong governance and staff competences to be in place and consistently demonstrated. This is particularly true in the case of road organisations that have extensive outsourcing operations.
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It can be observed from the case studies that if organisations organise and allow their internal AM workforce to participate at appropriate and frequent training sessions, performed by qualied and experienced trainers and focused on the improvement of AM skills, it motivates, improves operational knowledge and competences, and allows the opportunity to align with an organisation’s AM strategy and objectives. It also integrates cross departmental teams. In the case of AM outsourced services and as a pre-requisite for the start of the activities, it is highly recommended to demand the participation of all external teams to undergo introductory AM training to align with outsourcing organisation. The main purpose of this training is to align the external workforce with the implemented AM objectives and practices and its complexity will vary depending on the complexity of the works to be performed and their possible impact on the AM strategy/objectives. In the event that the outsourced services/activities have an impact on achieving an organisation’s AM objectives, the associated risks shall be assessed and those activities/ processes controlled.
4.8 POLICY
MGR
DATA AND INFORMATION
The performance of an Asset Managing organisation is strongly dependent on the quality and availability of asset data and information. This was a major concern for the organisations surveyed in this project because all of them deal with signicant and highly complex physical asset portfolios. Most published literature on Asset Management makes extensive reference to the importance of the subject of data and information management, including previous reports2 and recent work carried out within CEDR3.
OPS
As part of its Asset Management System, and therefore within its SAMP, the organisation should address not just the question of the data it needs to support its business, but also to question the ownership, governance, quality assurance and change management.
2 3
Data Management for Road Administrations, A Best Practice Guide, v 2.0, WERD, 2003 Management; Draft Report of CEDR Task Group N2, v1.1, November 2015
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Asset data should be accurate, complete, consistent, valid, on time and unique. Consideration may need to be given to ISO8000 concerning Data Quality, but certainly ISO 55001 (para 7.5) provides further detail on more detailed considerations, for example: → Identifying data risks → Allocating data roles and responsibilities → Information exchange requirements → Impact of quality, availability and management of information on decision making → Data attributes required → Data quality requirements → How and when information is to be collected, analysed and evaluated → Information management processes → Alignment (consistency) of terminology → Consistency and traceability of data in respect of legal, regulatory, stakeholder and organisational requirements and objectives. Consequently the subject data/information for AM purposes should be approached from three perspectives: → Acquisition process: key parameters to collect/measure that support implementation of strategy and decision making criteria; measurement equipment accuracy; data acquisition/analysis methodology; measurement/acquisition conditions (weather, luminosity, etc.); data format (particularly when outsourced). → Analysis and storage process: signicant asset portfolios generate big amounts of data/information that needs to be analysed and stored in a way that supports easy and efcient access. For this purpose it is widely recognised in the industry that there
→
is benet to be gained from implementing a comprehensive and integrated Asset Management Information System (AMIS). Quality Assurance approach: verication audits, QA included in suppliers’ contracts, system reports to identify gaps and discrepancies.
An effective AMIS should support an organisation with relevant AM processes and activities, such as asset inventory, planning, identication of repairs and maintenance needs, investment modelling, storage and spare parts management, road space booking, management of assets condition monitoring (inspections, tests, monitoring devices), routine maintenance, major repairs, etc. Above all it should allow the storage and management of all assets related information in an integrated way. The subject of Data Quality is another example of an area of business which has an ISO standard applicable to it; ISO 8000 Data Quality was published in 2011. It may be particularly said to be true in the road industry that a user-friendly and effective AMIS should be accessed and visualised spatially to have a cross asset view and document asset performance. For example, the information/data regarding accidents that occur in a specic road section (including weather conditions and consequences), the surrounding environment and topography, the road geometry itself, pavement surface parameters and drainage conditions on that section, when seen graphically make multifactor analysis easier and more intuitive. Deciding on the best solution for an AMIS will depend on the organisation’s AM strategy and resources, and, to some extent, legacy systems. The power in modern IT systems allows near real-time multifactor analysis to identify alternative intervention strategies – leaving more time for the asset experts to consider options and optimise action plans within budget constraints.
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Depending on the organisation and the complexity of their assets, the implementation of an AMIS could require signicant investment (both upfront and on-going) and it could be a huge task and difcult to implement in a single stage, therefore some organisations have decided to do it in prioritised planned stages over a period of time.
4.9 POLICY
MGR
RISK MANAGEMENT
The eight organisations surveyed seem to be familiar with the identication and management of the major AM risks and their possible consequences. This may be because of the general emphasis and high prole of risk assessment in road construction, in particular, which is now being translated across into AM activities. Adopting a riskbased road inspection regime can also bring direct efciency savings by allowing priority for repair to be based on risk of failure. Several categories of risks that could possibly affect AM were identied (eg physical, resource, environmental, political, operational) and the major concerns of organisations were specic risks such as: non availability of resources (human and nancial), not having adequate AMS-IT support tools, lack of AM awareness at Board level, poor quality of AM data/information, major accidents/incidents, failures on the management of outsourced activities, weaknesses of communication processes and the potential impacts of climate change. Risk management is an inherent part of ISO 55001, namely that asset management related risks must be considered in the organisation’s overall risk management approach including contingency planning (see clause 6.2.2). Further guidance may be found in the companion standard, ISO 31000:2009. It seems from our investigations that formalising this aspect of the AMS is work in progress for many of the organisations on the road to certication. The idea that risk management creates and protects value for the organisation already exists in the road industry and it is embedded in many AM activities. The management opportunity is less with a structured/developed organisation compared to risk, but still important for supporting a long term approach.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
The aspects of risk management that will continue to require some effort from road organisations that want to achieve ISO 55001 certication, are: → How to implement a structured process to identify and assess risks and opportunities associated with managing assets, and consider how these can change with time → How to manage the implementation of the appropriate risk control and to monitor risks and opportunities in an integrated process which aligns with the organisation’s overarching risk management approach including contingency planning → Focus improvement and change on key system aspects (otherwise would be too vast). A system approach leads itself to cycle improvement.
4.10 IMPROVEMENT AND CHANGE MANAGEMENT POLICY
OPS
Monitoring and continual improvement is embedded in all ISO standards. The case study analysis shows that all eight organisations have already moved through to certication in other ISO management systems (eg quality, health and safety, environment, etc.) and therefore improvement and change management is a generally implemented practice. Nevertheless, the effective application of an improvement and change management approach to the management of assets is still a challenge for road organisations, because there are many unpredictable changes impacting on AM results, such as new legislation/regulations, new technologies/processes, loss of experienced staff with relevant knowledge of ageing assets, accidents/incidents with signicant consequences, etc. A good example of this challenge is that although most of the organisations we contacted considered applying a ‘Lifecycle Cost (LCC)’ approach to the management of their assets, what we generally found for the road sector is that the results/conclusions of this approach often do not reach an operational level (routine maintenance and repairs management) within the organisation. This means that despite being a good management exercise, the practical consequences of it still need improvement.
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4.11 SUMMARY AND CONCLUSIONS POLICY
MGR
OPS
Concluding the evidence given by the case study organisations and also from the experience of the project consortium, we can draw the following lessons. The initial costs of adopting a new system are mainly due to the fact that, in many road sector organisations, there is a lack of ‘AM culture and experience’ at the top management level. As a consequence, AM on road projects is generally not approached in an integrated way, but rather focuses only on a few aspects of the AM process. Consequently the budget for developing AM is, in most cases, insufcient to fund the resources (human and nancial) necessary to implement all the required processes and to integrate the complete and necessary set of asset data and information on the decision making process. It can also be summarised that the important areas to invest in to implement an AMS compliant with ISO 55001 are: → Development and alignment of processes and procedures to plan, implement, review and maintain the AMS → Having the necessary qualied and competent resources to plan and manage the assets over the whole lifecycle, led from the top tier in an organisation → Implementing an effective AM communication process between the relevant stakeholders → Improving the competencies of the people involved at all levels → Implementing and maintaining a suitable enterprise asset management system that fulls business needs supporting the actions (repairs and maintenance works) that the AM processes will identify as necessary, considering all Lifecycle Cost (LCC) aspects and Contracts requirements → → →
Improving data in a way that better supports decision making Implementing a risk based approach to all AM decisions Ensuring a continuous improvement and change management process.
It seems appropriate to believe that, if an organisation has already invested (or plans to invest) relevant resources to implement such an AMS, the marginal extra cost to that process of applying for ISO 55001 certication, would make business sense. At least one example of this is given in Appendix 1, namely Durham County Council. The perspective of ISO 55000 certication depends on the Road sector organisation: Road Authority, Motorway Concessionaire or Maintenance Operator. The end-toend asset management process runs across all these organisations and needs inputs from each even if only one organisation is pursing certication (each can be certied independently). Examples include: → Road Authority, focusing on Policy → Concessionaire, focusing on asset monitoring and performance, and also on delivery when the Operator is only in charge of routine maintenance → Operator, focusing on the actual delivery of asset management as opposed to monitoring of performance.
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GO TO APPENDIX
1
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Road Administrations are less exible to move towards certication or are not attracted to this type of standard because they have to deal with a number of different contractors. The benet of certication increases with the degree of involvement of the Road Administration, on a sliding scale (see Diagram 1 in Section 4.2) between carrying out maintenance using in-house resources to complete outsourcing. For a Public Road Administration/Asset owner managing their supply chain through a performance contract, the benet could be marginal, essentially by having reassurance that their contractors are complying with it but not improving the overall value of the assets. Implementing ISO 55001 requires an investment in a high level of awareness/knowledge about: → How the ISO standard approaches asset management and an asset management system → What are the gaps between the organisation’s AM process/system and what is required by the standard → The need for senior-level buy-in from the outset → What are the necessary investments to close the gaps → What are the expected benets from implementing ISO 55000. With that knowledge, a business case can be made, and a project established to implement the asset management system, with a timescale and a budget.
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IMPLEMENTING AN ISO SYSTEM IN YOUR ORGANISATION POLICY
MGR
OPS
This section sets out how you could introduce the requirements of ISO 55001 into your management system, and implement it in order to derive value from your asset operations. It follows an asset activity ow structure with three implementation owners; policy maker, asset manager and asset operator. Whether you wish to adopt specic ISO 55001 elements to add to your existing asset management system or adopt the complete set of ISO elements and achieve ISO accreditation is up to each organisation and their business drivers. You may decide to start by setting up a generic AMS, based loosely on ISO 55000 principles. You may decide to start, from the outset, with the intention that your new AMS fully complies with ISO 55001. Or you may use your existing generic AMS and reverseengineer it to meet ISO 55001 requirements. Each will carry its own resource needs and costs, and will be delivered in different timescales. There are some fundamental ‘do’s’ and ‘don’ts’ for each route to ISO 55001 that the owner will need to consider, as these determine how successful and quickly benets can be embedded into your organisation. This is not intended to give you the complete answer but raise some valid learning points from those organisations we have talked to. You may also nd the ’18 Steps’ identied in the recent CEDR Asset Management Draft Report useful4. Appendix 3 presents, in tabular form, a cross reference between the ISO 55001 requirements, the ISO 55002 guidance, context. and notes about theto application a highways You may want turn to this atwithin regular points as you read through this chapter.
4
Asset Management; Draft Report of CEDR Task Group N2, v1.1, November 2015
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GO TO APPENDIX
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
5.1
DEFINING YOUR ISO 55001 ORGANISATION AND ROLES
It is important to recognise that ISO 55001 denes the asset system within an organisation but not how the organisation manages or derives value from the system. It is also based on a matrix approach, combining lifecycle activities (horizontal elements) with strategy, planning and operations (vertical elements). Where each element intersects requires organisational ownership and an appropriate set of skills/competences. The diagram below shows the three roles of Key Policy Maker, Manager and Operations together with their responsibility for the seven ISO elements; either a primary or supporting () secondary responsibility. Each role requires strong ownership to derive maximum value from their sphere of inuence. It is acknowledged that in some organisations these roles may be combined to satisfy staff manning constraints. Where this is unavoidable it is important to have clear outcomes and ownership for each ISO element.
Your Role?
Key Policy
Manager
Operations
Maker
Preliminary assessment stage – assess relevance of ISO 55001 ISO 55001 Elements
Key Policy Maker
Manager
Context
()
Leadership
Planning
( )
()
Support
()
Performance Evaluation
()
Improvement
()
Operation
Diagram 2a
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Operations
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Note that the ISO 55001 denition of support includes resources, competence, awareness, communication, information requirements and documented information. It is important to recognise that ISO 55001 requires engagement with asset system stakeholders such as the supply chain, adjacent highway Administrations and environmental authorities. Managing these relationships is carried out differently in highway organisations: some appoint dedicated stakeholder managers, for others it is managed by peer relationships at the three functions of policy, management and operations.
5.2
MAPPING YOUR ISO 55001 MATURITY JOURNEY
Each road organisation will start their ISO 55001 maturity journey at a different level. Some organisations may already be accredited to PAS55 and others may have developed an in-house asset management system. It is therefore recognised that not all organisations wish to gain ISO 55001 certication but instead only align their asset management system with ISO principles. The diagram below suggests the minimum set of activities which will allow an organisation to develop an integrated asset management system and to derive value from its assets. Making the decision to achieve ISO 55001certication is shown as a separate activity which not all road organisations will follow. The inputs and outputs of these activities will be the key documents, processes and decisions that form the asset management system requirements of ISO 55001. These activities should also be part of a formalised continuous improvement framework of reviews that document lessons learned to improve the asset system. Four activities have been highlighted which are considered on the road to achieving ISO 55001 compliance and should be the responsibility of the core asset management team within the road organisation. → Reviews: → Current policies → Current processes → Current practices → Undertaking a gap analysis. This will conrm the current GO TO level of an organisation’s maturity comparing the current SECTION 7.2 asset system to its aspirations. Standard toolkits such as the SAM (Self-Assessment Methodology) produced by the Institute of Asset Management may be used to assist this process specically with reference to the ISO 55001 standard. The output is a future action plan → →
to enhance maturity. Business case, resource and road map Managing change and communication. It is important that the asset team manage the approved asset system change activities against agreed outcomes in order to derive the expected value from an organisation’s assets.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Diagram 2b describes the different steps on the road to certication.
The Journey to Maturity Review current policies
Future objectives/ demand
Review current processes
Review current practices
Review asset knowledge Undertake Gap Analysis Review asset lifecycles Consider options/plans/ resources
Plan/Manage
Continuous Performance Review
Change Decision PointDrive Change Implement Changes and SAMP
Manage Asset Portfolio
ISO 55001 Specic Actions Engage Stakeholders
Develop a SAMP
Diagram 2b
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Certication Audit
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Another view of how ISO 55000 links together an Asset Management System with enabling and control processes, as well as the resources needed in support is shown in diagram 3 below. Asset management system
Enablers and controls Stakeholder expectations
4. Organisational context Asset management policy
5. Leadership
Strategic asset management plan Organisation, roles and responsibilities
t n e m e v o r p m I . 0 1
Risk management 6. Planning Asset management objectives
8. Operation
Asset management plans Change management
9. Performance evaluation
Contracts and outsourcing Monitoring and analysis Internal audit
Resources
Competence
Awareness
Communication
Information
Documented
requirements
information
Management review
7. Support Diagram 3 Each set of implementation activities are described in further detail below and grouped under the key roles of policy, management and operations, preceded by some general implementation activities.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
POLICY
5.3 IMPLEMENTING THE REQUIREMENTS OF ISO 55001 – GENERAL ACTIVITIES
MGR
OPS
Table 3 ISOMaturityActivity
ValueOutcome
These are general and preparatory activities that are necessary for a road organisation to implement its maturity journey and gain credibility and commitment. They include:
The road organisation has an effective and accountable change management team with clear responsibilities and approved change budget.
→
Securing senior buy-in Setting up the change management team and assigning responsibilities, budgets etc Preparing and monitoring the AMS roadmap and change activities in order to set the direction of the road organisation, align the organisation with asset management thinking, develop the AMS and necessary processes and tools Setting up and monitoring the change risk
→
register Insider awareness training in parallel.
→ →
→
Think about
There is an approved roadmap with linked change activities. Each activity has an owner, input, output, duration (incl. cross department). There is a populated risk register and programme of regular reviews. Change activities are clearly communicated within the road organisation.
Try to avoid
Who the most appropriate road staff are to implement the change. Do they have the right skills or do they need additionaltraining.
An unclear mandate for change as it will make asset management embedment more difcult. Don’t make the change process too complicated as it will require excessive management.
Developing a deliveryroad map based on aspiring to levels of service and performance delivery.
Insufcient resilience in your change team. Document your change process and including Consider staff succession planning to mitigate stage gateways and reviews to reect on programme delays due to team changes. progress and gain endorsement for each stage. Aligning the asset risk register and analysis approach with the corporate risk approach so that portfolio analysis can be carried out and existing tools and training can be used. Communicate your change successes and use these to embed wider asset management knowledge in your road organisation.
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Case study notes
ISO 55002 Ref 4.x, 6.1, 7.2, 8.2
Connect Plus operates the M25 network in the UK under a 30 year PPP contract. Following award it mobilised and developed a road map to implement its AMS within two years. This includes anits Asset Management Framework (Objectives, Policy, Asset Category Strategies), asset management objectives which are linked to Project Road Objectives (the overarching objectives our client is trying to secure from the project) and renewals investment cycle.). There is a rolling annual, 5 and 30 year plan published annually aligned to the asset delivery strategy and hand back criteria. It is distributed internally, provided to shareholders (through a brieng), reviewed by the client and provided to banks/lenders. The AASHTO TAM guide presents a business model approach to developing an AMS. this poses ve core questions related to current asset state, levels of service and performance delivery, criticality, investment strategies and funding requirements. The 2015 CEDR Task Group N2 committee interim report distinguishes between European road agencies that have used a formal process to develop a high degree of asset system components and use specic aims and objectives with measurable milestones, and those with some components in place but without clear policy direction. The report also suggests that a third of CEDR members have an asset management system although this includes some systems where connectivity is not fully integrated.
POLICY
5.4 IMPLEMENTING THE REQUIREMENTS OF ISO 55001 – ACTIVITIES FOR POLICY MAKERS
ISOMaturityActivity
ValueOutcome
These are activities for key policy makers to ensure that the AMS changes align with the road organisation’s strategic policies, objectives and external factors such as the legal responsibilities and stakeholder commitments. They include: →
→
→ →
→
→
→
Organisation has an Asset Policy that aligns with the corporate policy objectives for managing its road infrastructure and mandates the AMS. Senior road organisation management fully endorses the AMS and change programme.
Developing the AMS business case and identifying costs and benets, and measures for capturing and tracking them Conrming the senior management team’s commitment to developing your AMS Securing cross organisational support Reviewing and aligning the current road asset policy against your corporate vision
Proposed changes to the AMS reect future operational demands on the road infrastructure. The investment case for change is based on optimised cost/benet scenarios which can be monitored through benets realisation. There is a programme of policy and business
and other policies case reviews by road organisation senior Reviewing the future operational objectives management. and transport demands to conrm the asset requirements and initiating a gap analysis process Making an operational orinvestment decision based on options and investment plans and driving change Directingcontinuous performance reviews.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Think about
Try to avoid
The importance of asset management leadership empowered by an Asset Policy to drive strategic thinking, stakeholder management, risk management, and governance.
An Asset Policy that is not signed by senior management. Silos between road asset policy creators and operators. Conicting demands between long-term asset management performance and short-term
A named senior management sponsor for your Asset Policy, AMS and change programme.
operational maintenance. Unclear governance in connection with outsourced tasks and operations and communication points.
An Asset Policy that is integrated with other organisational policies such as ISO9001, ISO11000, ISO14000, ISO27001 and ISO33000. An Asset Policy that is aligned to operational policies such as Planned and Reactive Maintenance and Severe Weather as well as internal enabling policies such as Communication, IT, Risk Management, staff Learning and Development. An annual calendar with dened reviews and approvals of AMS policy by senior management. A sequence of annual policy review process leading up to the approval date. A corporate Data Policy that includes standards for asset referencing, data dictionaries, data quality and validation and storage. Casestudynotes
ISO55002Ref4.1,4.2,5.x
NATS has achieved ISO 55001 through delivering all the ISO elements, including the Strategic Asset Management Plan (SAMP) and a Tactical Operating Model, in its business planning cycle. NATS is working towards ‘shrinking’ the ‘line of sight’ from strategy to operations and increasing efciencies. It is required by UK Government to produce a Service Investment Plan which includes benets to service capacity(airlines), safety, environment, risk etc. the Business Plan also includes the AM Policy, AM Objectives, SAMP, AMPs and key business processes. ASFINAG has an asset management strategy which directly links to the company strategy. High level policies and/or objectives that inform or direct its implementation of asset management include: → → → → →
Ratio of construction sites on the network Safety of construction works Safety of pavement (eg skid resistance) Cost certainty (concerning construction site) Annual prot.
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Case study notes (continued)
ISO 55002 Ref 4.1, 4.2, 5.x
CP/CPS joint business case signed off for integrated assessment of both parties, reecting the integrated nature of the system. In 2010, the national road Administrations (NRAs) of 13 European countries launched the BEXPRAC survey (Benchmarking of expenditures and practices of maintenance and operation) in an effort to benchmark the performance of their maintenance and operation (M&O) policies within the framework of the Conference of European Directors of Roads (CEDR). The benchmark was to be completed by sharing gures and best practices. The study considered: → →
How to better justify budget allowances Deliver service levels and priorities within a xed budget, dening performance targets and improving performance levels by sharing best practices.
Durham County Council (UK) was the rst local authority to achieve ISO 55001 accreditation through a staged process alongside ISO11000 (Collaborative Business Relationships). It had already achieved ISO9001, ISO14001 and ISO18001. It developed a Transport Asset Management Plan (TAMP) aligned to several internal and supporting strategies and plans including a Communication Strategy, Highway Maintenance Plan, resilience policies such as winter maintenance, customer satisfaction surveys, benets realisation and best value reviews to promote savings and efciencies, knowledge sharing and a procurement strategy.
MGR
5.5 IMPLEMENTING THE REQUIREMENTS OF ISO 55001 – ACTIVITIES FOR ASSET MANAGERS
ISOMaturityActivity
ValueOutcome
These are activities for asset managers working in a road organisation’s asset team and who are responsible fortactical level delivery and translating policy into strategy and lifecycle operations. They include: →
→
→
→
→ →
The road organisation has a core asset team with autonomy to deliver AMS change. An asset gap analysis is carried out that identies the current maturity level and has prioritised costed improvement actions that are aligned with future road demands/objectives.
Reviewing the current asset management processes and interfaces with other teams and stakeholders Undertaking an asset gap analysis based on the future road objectives/demand and review of asset knowledge Considering the road asset options and investment plans Planning and managing approved
The road organisation has a programme of planning and managing change to improve AMS maturity.
operational or investment changes Develop a Communications Plan Managing continuous performance reviews and team capability/resourcing.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Think about
Try to avoid Duplication, out-of-date and inaccurate data (need to dene criteria for each data type and the controls put in place to manage quality etc.).
Review of information requirements: → → → →
Ownership Data capture Data Quality Data Management.
When compared to the existing data in the organisation, the data gap analysis should be performed. Review of operational processes; to ensure they support: → →
Risk based approach Lifecycle analysis. ISO 55002 Ref 4.4, 5.3, 6.2.2, 7.4, 7.5
Case study notes
Highways England operates with 19 Guiding Asset Management Processes. These help the organisation to move from a traditional approach with maintenance standards and compliance to a new approach based on assets, customers and other stakeholders. They have also developed a proactive cross-asset based investment programme which balances stakeholder requirements eg safety. NATS operates a Business Management System (BMS) to manage the large number of stakeholders and communications. Internal AMS communications are scheduled through an Asset Review Board and assurance workshops. NATS has key role proles with asset competences. Due to the complex asset infrastructure the legacy business had 47 asset managers. Due to the ISO 55001 process including breaking down silos and rationalising job titles there are now 5 key ‘asset managers’. ERTO’s contract requires full communication with stakeholders and to make this effective asset management documentation is provided to the AMS stakeholders. TfL operates with 500 staff that have AM duties and an Asset Investment team with dened roles and responsibilities for the implementation and support of asset management. AM competencies are dened in staff job descriptions. TfL ensures appropriate provision of skills and levels of competence to support the implementation of the asset management system through ‘role families’ these also dene competencies and training requirements which are reected in job descriptions. AM training is at 3 levels to match competence requirements of roles: → → →
Level 1 – intro to AM ½ day. For all in TfL business, approx 1,000 attended to date Level 2 – principles of AM. 3 days. Suitable for IAM Certicate Level 3 – 5 No. 2 day modules. Suitable for IAM Diploma.
TfL’s training programme has been a big success and ensures common understanding/language with respect to asset management. BBMM (UK) has 8 dedicated Asset Champions, each responsible for an asset group such as Pavements, Structures and Lighting. They develop an AMP which is reviewed annually by the Asset Group Leader. Each AMP contains the approach to collecting asset data through inspections and surveys, managing and analysing asset defects, scenario planning based on a risk-based approach, investment requests and tracking asset interventions such as planned and reactive maintenance, renewals and improvements.
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ISO 55002 Ref 4.4, 5.3, 6.2.2, 7.4, 7.5
Case study notes (continued)
Connect Plus Services M25 has 700 staff of which 100 are Asset management staff (includes asset teams, inspectors, commercial, in house designers, project managers and works supervisors).Job descriptions are in place for all roles, with required levels of AM competency. Training is identied as part of the annual Personal Development Reviews and the delivery teams are adjusted according to the scale of investment required through the Asset Management Forward Plan. Improvements could be made to how resourcing decisions are structured/documented. CP/CPS also developed a bespoke AMS diagram for its project, which is used as context for brieng all teams (internal/external) on the importance of an end-to-end approach and the inputs of different teams on each other. Rijkswaterstaat uses an infrastructure management maturity model which focuses on organisational communication (internal and external), culture and leadership. The IAM’s Asset Management Landscape (2014 2nd Edition) sets out the importance of people to implement an asset management system. It describes the role of key people enablers such as asset management leadership, supply chain management, organisational structure and competence management through training and qualications.
OPS
5.6
IMPLEMENTING ISO 55001 – ACTIVITIES FOR ASSET OPERATOR
ISOMaturityActivity
ValueOutcome
Training and education of staff at all levels; Operational efciency savings. obtain buy-in to concept that their actions Minimisation of risks. affect the ultimate achievement (or not) of Satised stakeholders. the organisation’s objectives. Are stakeholder expectations understood and being managed? Review systems – including processes as well as IT systems; are they t for purpose? Do they facilitate the necessary communication for efcient asset operations on the ground? Think about
Try to avoid
How to integrate road operations and planned and reactive maintenance activities with asset management planning to achieve mutual outcomes.
Road organisation operational teams not communicating with the asset team. Making short-term operational decisions which do not save long-terms cost or add whole life value.
Developing a set of operational processes which include measures to monitor ISO 55001 elements.
Appointing outsourced supply chain partners on a majority cost only basis.
Including the supply chain within process development. Including asset data updates as part of scheme completion requirements. Providing asset management and ISO 55001 principles training to operational teams.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
ISO 55002 Ref 7.2, 8.x, 9.x
Case study notes
ERTO has developed a Contractor’s Plan which includes all document in a project library, structured at four levels: →
→
→ →
Level 1 – high level management and governance documents (ie IMS Policy, IMS Manual, SAMP) Level 2 – high level plans and business management procedures (ie AM Communication Plan, AM Risk Identication and Management Procedure, Asset Management Plans, Maintenance Plan, Internal Auditand Procedure) Level 3 – operational manuals guidelines Level 4 – operational procedures and forms.
Fingrid has developed its AMS based on investing in knowledge management, with a strategy strongly centred on Fingrid’s expertise and with all information (data) in Fingrid’s possession. It has a system for recording and monitoring contractors qualication/performance through KPIs and incentive program for service providers. It has also training, education programs and seminars in place to upskill its suppliers. CP/CPS has implemented BS 11000. Contractors are evaluated using a balanced score card that reects the asset management objectives.
5.7
POLICY
MGR
OPS
SUMMARY – PRINCIPAL CONSIDERATIONS FOR IMPLEMENTATION OF ISO 55001
ISO 55001 sets out the elements for an asset management system within an organisation. It suggests what but not how an organisation uses its people to make this happen. The second part of the standard, ISO 55002, gives further guidance on application, and a cross-reference table between the two parts, and links into the Highways context is provided in Appendix 3.
GO TO APPENDIX
3
The principal considerations to successfully implement ISO are the organisational structure, communication, culture and leadership. The IAM’s Asset Management Landscape provides support with developing people skills.
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Each European road organisation will approach ISO 55001 implementation differently. But to derive value from an organisation’s asset management there are ve fundamental questions to be addressed: → What is the current state of my assets? → What are the levels of service and performance delivery that I aspire to? → What are the critical asset groups which if fail will impact on service and performance? → What are the optimal investment strategies to meet or exceed service targets? → What forward investment is required to meet or exceed service targets? There are many factors which when combined will improve an organisation’s asset management maturity. Key among these are: → Gaining full and transparent commitment from senior management and interfering parties backed up with an Asset Policy which mandates change → Developing specic organisational functions to support the core asset team and embed asset management culture. Examples include cross organisational committees, management and change teams, staff development and communication → Having available and understandable asset data and information in the required level of detail to make value decisions → Adopting a whole lifecycle approach to developing the AMS in a phased, measured and conrmatory process → Communicating the benets of asset management with all stakeholders at all stages of AMS development to increase the transparency of decision making for; asset criticality, investment, risk and service levels.
Forana AMS, road organisation, whatever the (business motivationperspective, to move towards the implementation of compliant with ISO 55001 or Contract requirements perspective), certication will represent the evidence of that achievement. The evidence of having an ISO 55001 certicate will also be a signicant and positive performance message to road stakeholders and for road concessionaires their lenders, since it should be given by a recognised qualied third party audit or. It is worth remarking, however, that there is no binding mandate on what qualications an auditing organisation should possess; it is up to those seeking certication, to satisfy themselves that their auditor is bone de and comes with recognised experience and competence. For example, an organisation accredited by a national accreditation body such as UKAS.
GO TO CHAPTER 6
7
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
© Mikael Ullén
COSTS AND BENEFITS 6.1 INTRODUCTION POLICY
MGR
As a further reminder, ISO 55001 identies a number of potential benets to organisations from the implementation of an asset management system, as follows: → Improved nancial performance → Informed asset investment decisions → Managed risk → Improved services and outputs → Demonstrated social responsibility → Demonstrated compliance → Enhanced reputation → Improved organisational sustainability → Improved efciency and effectiveness. Studies reported by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Highways Maintenance Efciency Programme (HMEP) in the UK note that the implementation of a full AMS for highways should achieve long term budget savings of the order of 5% for highways, and that savings of up to 15% have been reported in other sectors567. Nevertheless, the consultation exercise undertaken for the ARISE project shows that development and implementation of a certied asset management system is generally driven by contract or other external requirements, rather than the self-identied aim to improve business performance. This is in part due to the level of investment and resources required for the implementation of such a system.
5
GO TO SECTION 3.6 4.2
Highways – Maintaining a Vital Asset (UK Roads Liaison Group, August 2013) Local Authority Transport Infrastructure Asest – Review of accounting, management and nance mechanisms. CIPFAS UK), 2008 7 Highway Maintenance Efciency Programme, Highways – Maintaining a Vital Asset Management Guidance (UK Roads Liaison Group, August 2013) 6
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It may be, therefore, that the perceived costs are a signicant barrier to implementation of a certied asset management system and are generally only outweighed where the principal benet is market access, ie where asset management certication is required for contractual and/or regulatory compliance. It is, therefore, important to be able to make a rational assessment of both costs and benets at all stages, from conception to implementation, of the development of an asset management system to the requirements of ISO 55001 in order to build a business case for justifying the investment in a certied AMS.
6.2
CBA ANALYSIS FRAMEWORK
A framework was developed by the ARISE project team to identify the relative scale of costs and benets likely to be attributable to the various elements of ISO 55001. This framework has been used to analyse information obtained from a number of organisations that have implemented asset management systems to determine the key ndings and recommendations presented in the following sections. The framework has some potential to be used as a simple ‘ready reckoner’ tool, eg for the development or optimisation of a business case for the development of an asset management system. It could be easily expanded to a greater level of granularity if required and supported by the available data, but this did not form part of the project. The framework together with summary results and analysis from the consultation exercise are presented in Appendix 2.
6.3
GO TO APPENDIX
2
DO NOTHING COSTS AND BENEFITS
In assessing the overall value of implementing asset management ideally the ‘baseline’ costs of ‘doing nothing’, ie the organisation’s current position, should be understood. The evidence from the consultation indicates that these ‘baseline’ costs are not routinely known or established prior to embarking upon the development and implementation of AMS. It is however evident that they will depend on both the scale of the organisation and the existing level of asset management maturity, eg: → Little or no existing asset management capability, or → Asset management in place or in development but not certied, or → Moving to ISO 55001 from existing certied system, eg PAS55. In practice, the majority of organisations with an interest in developing an asset management system to the requirements of ISO 55001 will already have developed many of the elements of the system to a greater or lesser extent.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
The establishment of ‘baseline’ costs and/or metrics to demonstrate the performance of the AMS will be important in developing and maintaining support for the business case, as well as objectively evaluating the usefulness and value of asset management, and a certied AMS in particular, to the organisation. It will also be valuable in identifying the appropriate cost and benet parameters and how to capture and track them.
6.4
TIMESCALE FOR EVALUATION OF BENEFITS
In implementing an asset management system ‘up front’ costs will be incurred in establishing the system as well as continuing costs in operating the system. Benets are, however, likely to accrue over a longer term. Evidence from the consultation has shown that, depending on the size and complexity of the organisation, and also the approach taken, it can take as long as 10 years to implement a compliant AMS. It is likely, therefore that benetealisation r will be on a similar, if not longer, timescale and this must be recognised both in planning and evaluating the performance of the AMS and in determining the appropriate payback period when developing the business case and commissioning its development.
© Tiia Ettala
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6.5
IDENTIFICATION AND ALLOCATION OF COSTS AND BENEFITS
In practice, dening the boundaries of what constitutes the AMS, and the delivery of asset management, will require careful consideration by each organisation for the identication and appropriate allocation of costs and benets, both for determining ‘baseline’ costs and also during the development and operation of the AMS. This is likely to include consideration of the tools and resources required, the activities undertaken and the parts of the organisation which are involved. It is likely that costs and benets will not be directly aligned within the various components elements of the AMS, and the respective elements of ISO 55001, ie costs occurred in one area (eg Planning) may give rise to benets in another (eg Operation). This suggests that it is not likely to be practicable or effective to attempt to selectively implement only those elements of the AMS that indicate low cost and/or high return, rather that the AMS should be managed and evaluated as a whole. Furthermore some costs and, in particular, benets – such as enhancement of reputation or prole from achieving ISO 55001 certication – may be difcult to monetise.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
6.6
SUMMARY OF POTENTIAL COSTS AND BENEFITS TO ROAD ADMINISTRATIONS
ISO 55000 is necessarily a very broad, generic standard as it is to be applied to a very wide range of ‘assets’. In consequence, the terminology and also the practical application of the text, require careful consideration for application to a particular asset type. From the work on the ARISE project, which encompassed a range of assets types, the following table has been developed to give some general guidance on typical interpretation or application of the ISO 55001 elements in a highways context. It is worth noting that ISO 55001 is, in principle, designed to accommodate the fact that: → The asset owner and operator may be different organisations, but → One organisation has to take responsibility for the complete AMS and submit it for certication, and → The arrangements may change during the lifecycle of the asset. This should allow application to the majority of highway assets, but needs careful thought about the division of responsibilities, duties and operations involved. Outsourcing (for example reported by Fingrid in their case study), can present challenges when adopting the standard and approaching certication. However, ISO 55001 does provide explicitly for such circumstances in its Section 8.3. Appendix 3 presents a tabular cross referencing between the elements of ISO 55001, ISO 55002 and the highways industry context. Table 4 below uses the same main Elements from ISO 55000 as that table, but lists potential costs and benets of each.
GO TO APPENDIX
3
Table 4 Asset Mgmt Element
4 Context of the organisation
Asset Management Sub-element
Potential Costs
Potential Benets
4.1 Understanding the organisation and its context
Activities likely to require signicant competent resource, ie
Clarity of organisational objectives
4.2 Understanding the needs & expectations of stakeholders
→
4.3 Determining the scope of the AMS 4.4 Asset Management system
→
→
→
Establishment of organisational structure and governance to support AM Denition of scope of AM Development of AM policy, objectives and SAMP AM process & documentation development
50
Establishment of AM resource Team roles and purpose letter
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Asset Mgmt Element
Asset Management Sub-element
Potential Costs
Potential Benets
5.1 Leadership & commitment
Specic AM related costs should be low
Strong committed senior leadership support for AM development and implementation is essential for success.
5.2 Policy 5.3 Organisational roles, responsibilities & 5 Leadership
→
authorities →
→
6 Planning
6.1 Actions to address risks and opportunities for the AMS
Signicant requirement for competent resource for planning activities.
6.2.1 AM Objectives
Comprehensive, good quality data is required to support effective planning.
6.2.2 Planning to achieve AM objectives
Costs of tools such as: → → →
7.1 Resources
Provision of appropriate resource: → → →
7.2C ompetence
Asset system DST EDM
Principal benets realised in terms of efcient operation and delivery (see element 8) Clarity in terms of key risks & opportunities: improved risk management and potential opportunity realisation
Improved recruitment requirements, training and knowledge relations
Numbers Skills competence Efcient operation and non-human resources delivery (tools)
Identication/ development/delivery of training
Efcient operation and delivery
Development of communication strategy
Increased buy-in and commitment within both organisation and supply chain
7 Support 7.3 Awareness
Secures funding and provides project sponsorship Provides awareness at senior organisation level Ensures a stable organisation with clarity of roles
Continued routine implementation of communication to all stakeholders
Continuous improvement
Efcient operation and delivery Continuous improvement
7.4 Communication
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
Asset Mgmt Element
Asset Management Sub-element 7.5 Information requirements
Potential Costs
Potential Benets
Data collection
Asset knowledge
Data management
Robust investment decision making and prioritisation
Data QA
Efcient operation and
7 Support
7.6.1 Documented information general 7.6.2 Creating and updating documented information 7.6.3 Control of documented information
Potentially expensive to develop implement and maintain procedures and documentation to standard required for 3rd party certication. →
→
8.1 Operational planning and control 8 Operation
9 Performance Evaluation
8.2 Management of
Version control and conguration management EDM
Signicant requirement for competent resource, including outsourcing, for operational activities
Right rst time – avoidance of re-working Clear cross team relations
Assure asset performance throughout the lifecycle Better quality for outsourced services
change 8.3 Outsourcing
throughout asset lifecycle
9.1 Monitoring, measurement, analysis and evaluation
Resource – performance Reinforcement of quality and quality review team culture Synergies with complementary ISO systems
9.2 Internal audit 9.3 Management review 10.1 Nonconformity and corrective action
10 Improvement
delivery Efcient operation and delivery
10.2 Preventive action
Improvements to system Implementation and maintenance of reporting systems
10.3 Continual improvement
Reinforcement of quality culture Performance improvement Synergies with complementary ISO systems
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6.7
PRINCIPAL CONSIDERATIONS FOR IMPLEMENTATION OF ISO 55001
Careful evaluation of each of the elements of ISO 55001 indicated that element seven ‘Support’ (see tables in Appendix 2) is the principal heading under which costs would be incurred and/or benets accrued in contributing to activities under the remaining elements. In the tables of the framework these headings are compared against the other six elements.
GO TO APPENDIX
2
In collecting and analysing the information from the ARISE project consultation exercise potential sources of cost and/or benet that could most readily be quantied/monetised were considered and rationalised as: → Time → Expenditure → Risk exposure/mitigation. Thus, costs were dened to include time, expenditure or increased risk, while benets included savings in time or expenditure or mitigation of risk. A brief analysis of the responses to the CBA consultation is presented in Appendix 2, while principal ndings to inform planning for the implementation of a certied AMS are presented below.
A. COSTS Across the scope of the asset Information management elements, greatest is likely to be required in Resources, and Competence (ie investment skills development and training). This reects the experience of the responding organisations in the importance of ensuring that appropriate resources are directed to the development, implementation and operation of asset management and the critical need for comprehensive and current data and information to support operational delivery and investment planning.
OPS
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
B. BENEFITS The CBA returns indicate that benets accrue principally under the elements (see Appendix 2) of Planning, Context and Operations reecting the gains from aligning business structures and processes with organisational requirements and improving efciency and effectiveness in delivery.
C. BENEFI T COST RATIO In terms of Benet Cost Ratio (BCR) in Table A2.4, Leadership shows by far the greatest return across the elements of ISO 55001. The costs attributed to Leadership for asset management are low, as may be expected since organisations will have established leadership structures, so the BCR demonstrates the value of having strong commitment at the most senior levels in the organisation to secure and maintain support, resources and funding.
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© Per-Erik Adamsson
THE JOURNEY TO MATURITY STEPS TOWARD SUCCESSFUL IMPLEMENTATION POLICY
MGR
OPS
Once your organisation has considered the potential benets and opportunities that improving its asset management ‘system’ can bring, it is then appropriate to consider where on your asset management ‘journey’ you are and where you want to get to. Conformance of the AMS to ISO 55001 is an additional consideration, which, while demonstrating a level of competence and good practice, is not the end of the maturity journey. It is convenient to consider the steps an organisation needs to take to improve their maturity, either to achieve ‘competence’ in ISO 55001 terms, or to demonstrate business improvement, or to show excellence in particular areas, by considering the nine ISO 55000 benet areas.
7.1
GAP ANALYSIS
Referring to Diagram 2b in Section 5, it will be apparent that the rst step in all instances is for an organisation to review its current policies, processes and practices . This can be done informally, or, preferably, using the elements of ISO 55000 as a checklist. The advantage of doing it this way, and possibly using a formal assessment tool such as that provided by the Institute of Asset Management i, is that the ‘gaps’ between the organisation’s current position and attaining the required competence to meet the ISO 55001 standard become immediately apparent. Even if the intention is not to achieve certication, this provides a useful benchmark for a general business improvement plan. During the review phase, the high-level strategic objectives of the organisation should be considered, and their relationship to asset management processes. From this, a gap analysis will show in what respects the asset management processes and practices are helping achieve those objectives, and hence identify improvements needed. The other key aspect of the review will cover asset knowledge – both the ‘what’ (inventory) and the ‘state’ (condition). Once again, this is likely to uncover shortfalls which may be included in the business improvement plan.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
7.2
CONSIDER OPTIONS/PLANS
The consideration of options and plans at this point will take two forms: → The Business Improvement actions required to improve the efciency of the asset management system (incl. basic compliance vs benet of going beyond) → The optional approaches to what may form the future Asset Management Strategy and Plan (at a technical and operational level) and impacts on associated planning cycles and teams → Organisational changes/improvements already planned. Almost every European road authority or operating company now works to an annual Business Plan, within a strategic plan covering, perhaps, 5 to 10 years. This could be extended in the case of long-term concessions and DBFOs, for example, to 30 years on M25 DBFO. The ways in which the priority list of tactical options (ie maintenance and renewal schemes) is drawn up, varies widely. An underlying basis of a good asset management system is having a good understanding of the lifecycles of each of the assets in your portfolio; If there is not a clear understanding of how an asset performs, and what interventions are required to ensure it reaches its expected life, it is hard to see how an optimal strategy can be developed for managing those assets that delivers benet to the organisation. Therefore, if your organisation does not have a good understanding of asset lifecycles, this is likely to form one of its rst actions, and one which could require considerable research effort. As there will never be a single solution to the asset management strategy to be adopted, a matrix-based analysis of options should be considered.
7.3 POLICY
MGR
PLAN/MANAGE CHANGE
Having considered the options for improving the asset management system, and the strategy and plans that will form part of it, the next practical consideration is of the resources (human, physical, and nancial) that will be required to deliver the preferred plan. Once again, even if your organisation has not yet decided to seek ISO 55001 certication, this is a useful exercise and one which most road administrations and operating companies go through already. If, at this point, the organisation decides it will embark on seeking ISO 55001 certication, then there will be some actions required to be built into the action plan specically to achieve that goal. These will include: → Secure leadership buy-in and cross organisational support → Establish the certication exercise as an internal project with allocated resources → Nominate a ‘champion’ with responsibility for delivery of the project (high level buy-in is essential) →
→
→
Engage with supply chain partners and contractors (the end-to-end view of asset management must be considered) Appoint an external assessor (registered with the appropriate national accreditation body) and agree a timetable for the audit process with them Action any improvements identied in the Gap Analysis as a priority before carrying out any audits.
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From the ndings of the ARISE research, we can highlight a number of possible change and improvement actions that roads organisations may need to consider before being in a state of readiness for ISO 55001. These are listed in Table 5. Table 5 ISO 55000 Benet Area
Key Success Factors → →
a) Improved nancial performance
→
→
→
Potential Risks
Create asset baseline Create nancial asset PIs Implement monitoring programme Regularly review performance
→
Effective Data Management
→
→ →
→
Typical Improvement Actions
Asset baseline errors Ineffective PIs Ineffective nancial monitoring Inadequate
→
Poor decisions, based on poor information
→
b) Informed asset investment decisions
→
→
→
→
→
→
Understanding risks
→
→ →
Unexpected outcomes Increased costs Impact on reputation (see g)
→
→
c) Managed risk →
→
→
d) Improved services and outputs
Buy-in to the principles and objectives of the AMS at all levels
→
Poor communication
→
→
→
e) Demonstrated social responsibility
→
AMS strategic and tactical objectives are linked to high level outcomes
→
Poorly dened outcomes and/or links to AMS
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→
*Introduce valuation of assets to monitor change over time *Attribute past expenditures to stretches of road and asset elements within them Identify key data/attributes/ formats specify in contract documents Introduce basic lifecycle modelling *Create/Improve asset knowledge (inventory and condition) Clarify objectives/ constraints Introduce risk-based analysis of tactical options, starting at strategic level and working down *Identify safety needs of the network *Dene technical life-span of each asset component Dene opportunity register starting at strategic level then work down to project *Introduce valuation of assets to monitor change over time Adopt performance-based approach and indicators KPI to cover end-to-end system Link asset management to Business Objectives that relate to social/ environmental outcomes
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
ISO 55000 Benet Area
Key Success Factors →
f) Demonstrated compliance
→
g) Enhanced reputation h) Improved organisational sustainability
i) Improved efciency and effectiveness
Clear objectives, well communicated
Good leadership and
Potential Risks →
→
communication
Typical Improvement Actions
Poorly understood AMS results in noncompliance
→
→
Seek and obtain certication to ISO 55001 Consider auditor training and teams auditing each other (semi-external audit)
Secondary effects
→
Seek and obtain
of poor performance not understood
→
Robust change management processes
→
‘System’ treated as box-ticking exercise
→
Robust AMS processes taken seriously at all levels
→
‘System’ treated as box-ticking exercise
certication to ISO 55001Stakeholder map and integrate management →
→
(*) Actions suggested in CEDR’s report8
8
Asset Management: Draft Report of CEDR Task Group N2, V1.1, November 2015
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Create robust and exible business management systems (consider integrating ISO 9001, 14001, 11000, 8000 etc. with 55001) Attempt to measure baseline efciencies from which planning/delivery cycle to the next
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
WHERE TO LOOK FOR FURTHER HELP WEB LINKS/ORGANISATIONS The Institute of Asset Management (UK-based)
www.theiam.org
Global Forum on Maintenance and Asset Management
www.gfmam.org
DOCUMENTS ISO 55000:2014 Asset Management – Overview, principles and terminology ISO 55001:2014 Asset Management – Management systems – Requirements ISO 55002:2014 Asset Management – Guidelines for the application of the ISO 55001 The Asset Management Landscape, 2nd Edition, GFMAM, March 2014, ISBN 978 0 9871799 2 0 Asset Management – An Anatomy, The Institute of Asset Management, ver 3, December 2015 PAS 1192-3:2014, Specication for information management for then operational phase of assets using building information modelling Asset Management; Draft Report of CEDR Task Group N2, v1.1, November 2015 Data Management for Road Administrations, A Best Practice Guide, v 2.0, WERD, 2003
OTHER RELATED STANDARDS ISO/T5 8001-1:2011 Data Quality Part 1 Overview ISO 9001:2015 Quality Management Systems – Requirements ISO 14001:2015 Environmental Management Systems – Requirements ISO/IEC 27001:2013 Information Security Management ISO 31000:2009 Risk Management – Principles and Guidelines BS 11000: Collaborative Business Relationships (due to be adopted by ISO in 2016) BS OHSAS 18001: Occupational Health and Safety Management
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
APPENDIX SUMMARY OF CASE STUDY FINDINGS RESULTS ARE PRESENTED, AS FOLLOWS: 1.
Relevant Conclusions (summary of 8 case studies)
2. 3. 4. 5. 6. 7. 8. 9. 10.
FINGRID Highways(Finland) England (UK) National Air Trafc Services, NATS (UK) Transport for London, TfL (UK) M25 Connect Plus (UK) Balfour Beatty Mott Macdonald JV, BBMM (UK) ASFiNAG (Austria) ERTO (Ireland) Supplementary information obtained from Durham County Council (UK) in July 2016
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. RELEVANT CONCLUSIONS Case studies analyse approach and relevant conclusions on 09-05-2016 (from 8 case studies analysis). CONTEXT 1) Nature of the assets On the existing 8 case studies the scope of the AMS includes only physical assets. The only exception is NATS that included also data assets on the AMS scope. In all 8 companies the AMS has in its scope a signicant and highly complex physical infrastructure. 2) Quantities Signicant asset portfolios. 3) Type of organisation On this sample of 8 companies, the organisations that rst moved to the PAS55/ISO 55001 certication process, are public, or public/private. Another relevant aspect is the relevance of Contract requirements on the decision to implement an AMS in compliance with ISO 55001. 4) Size and ‘birth’ date Medium/large companies (number of staff > 90). 5) AMS operating in one, or several companies On this sample of 8 companies, the information available seems to point out that the AMS is running in one company only, even if it does not covers all the steps of the AM process (examples of BBMM and ERTO). Only in case of Connect Plus – M25-UK (not yet certied) the plan is to include on the certication, the 2 companies that run the entire AMS process. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place In this 8 companies’ sample, the relevant AM processes and documentation are already in place, or under development. 7) Resources dedicated to AM This aspect – appropriate resources – is a key area of concern and investment in all the 8 case studies, because ISO 55001’s AM requires strong governance in place. This is equally important in case of extensive outsourcing. To support the implementation and operation of an ISO 55001 AMS it is necessary to ensure the appropriate provision of resources with skills and levels of competence. 8) Existing AM IT support tools Asset information quality is fundamental to an effective AM. To ensure that is necessary to have a comprehensive and Integrated Asset Management Information System could require strong investments. Depending on the organisation and assets complexity it could be a huge task to accomplish in one step, therefore some organisations decided to do it in stages over a period of time. 9) AMS maturity journey The implementation of an AMS compliant with ISO 55001 requires a ‘journey’ approach, because it has demanding requirements for different areas of the business management. The required period for the implementation of ISO 55001 depends on the maturity of the existing AM processes and available qualied resources. AM maturity is also linked with business management maturity, because it has a nancial motivation.
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There are synergies by linking/integrating ISO 55001 implementation with other ISO Quality Systems – 9001, 14001, 18001, 27001. Important aspects to consider: → → →
→ → → →
Engagement with stakeholders to understand their needs and expectations Proactive communication with suppliers Actively plan and manage communication about AM, to relevant staff, suppliers, third parties and stakeholders Implementation of adequate management information systems Processes to manage, maintain and review AM procedures Data/information accuracy Risk assessment.
ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation Depending on the AM maturity of an organisation the certication on ISO 55001 could be a task for 2, or more years. 11) Targets and change management Change management is a key aspect on ISO 55001 implementation. In some of these case studies it was pointed out the importance of setting up and control targets and objectives, along the implementation process. 12) Certication for entire AMS, or just for some sub-processes? Both options seem to be possible. For example BBMM is already certied and doesn’t run the entire AM process. NATS is also certied and seems to run the complete AM process. LESSONS LEARNED 13) Quick wins Big push on improving: → → → → → → →
Knowledge management Efciency and effectiveness in delivery Team cohesion Performance measurement Achievement of intended business outcomes Line of sight to the AM Strategy Leadership, skills/competency and communication.
14) Big challenges/barriers The certication process could be long. Effective communication with company’s stakeholders and also internally. Ensure the understanding of what is an AMS, within the various departments of a company and alignment of objectives. To ensure an appropriate budget for AM to be effective. Management of outsourced services. Appropriate data quality.
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15) Risks and critical success factors Critical success factors: → → → → → → → →
AM awareness at Board level Establishment of dedicated team/resources to lead and progress AM implementation Being able to provide evidence to demonstrate benets of AM approach Failures to highlight need for AM approach Both inventory and condition data should be kept at high level of accuracy/quality Availability of IT support tools for data management Lack of resources Regular audits to the AMS.
BENEFITS TO ORGANISATION 16) Structuring the strategy In case the AM strategy is not already establish by contract requirements, the process of structuring the AM strategy is still a work in progress. 17) Design for maintenance No available information. 18) Whole lifecycle approach WLC approach is a concept that in most of the cases is still a work in progress.
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. FINGRID, DATA COLLECTED IN OCTOBER FINLAND CONTEXT 1) Nature of the assets Electricity grid in Finland (lines infrastructure and substations). 2) Quantities 14,000km of 400, 220 and 110 kilovolt transmission lines plus 116 substations, 10 reserve power plants (21 units), including fuel tanks, generators and turbines. 3) Type of organisation Fingrid Oyj is a Finnish public limited liability company. It is owned by the State of Finland (holding 67.7%), Ilmarinen Mutual Pension Insurance Company (19.9%) and other institutional investors 12.4%. Fingrid is responsible for electricity transmission in the high-voltage transmission system in Finland. It is responsible for planning and monitoring the operation of the Finnish electricity transmission system and for maintaining and developing the system. The government owns almost 70% of the company, so FINGRID is the owner and manager of assets. 4) Size and ‘birth’ date The company was established on 29 November 1996. Operations started on 1 September 1997. Number of personneland at 2014 year-end: 313has (287), within282 (268) permanent employees.Rovaniemi Fingrid is headquartered in Helsinki, the company also ofces Hämeenlinna, Oulu, Petäjävesi, and Varkaus. Turnover EUR 567 (543) million. Balance sheet total EUR 2.15 (2.18) billion. 5) AMS operating in one, or several companies One. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place PAS55 is implemented. Certication since 2011. Investment on knowledge management, with a strategy strongly centred on Fingrid’s expertise and with all information (data) in Fingrid’s possession. Fingrid has a system for contractor’s qualication/performance follow-up and a KPI and incentive program for service providers. It has also training, education programs and seminars in place. They have annual audit programs. 7) Resources dedicated to AM AM staff = 135. No detailed info, only a general diagram with top management. Organisation chart does not reect AM system – but roles and procedures do! For maintenance, Fingrid purchased the actual service at market conditions, through long term contracts (3 years) for basic maintenance and local operations, and through short contracts for special maintenance Maintenance is planned by Fingrid and service providers plan,term perform and report works. Investmentstasks. are done through turn-key deliveries. 8) Existing AM IT support tools Large IT project underway (ELVIS). Effective tools for data management, same tools used by service providers as in-house through Fingrid’s extranet (FgPartners). The data system that supports asset management and use goes by the name of ELVIS (an acronym for ELectricity Verkko Information System). ELVIS is an asset management information system that comprises a total of eight integrated products. The integration into each other allows that the master data of the grid network’s assets are only located in one application.
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ELVIS has been strongly integrated into Fingrid’s other systems, such as nancial management. IBM is acting as system integrator with overall responsibility for ELVIS. In the ELVIS software package, the ownership register, maintenance management and connection planning take place using IBM software, into which Esri GIS and mapping products are integrated. Other parts belonging to the system are Oracle project portfolio management, an SAP mobile user interface, Intelligent Process Solutions software for protection settings management, Electrocon protection simulation and Siemens’ network calculation and network model management applications. The rst parts of the system were introduced in autumn 2013 and the last ones were brought in during 2014, so that the whole system was implemented in 2015. In the rst stage, the ERP system was introduced, which plans and budgets for maintenance work and grid expansion projects. The equipment information and service history of the grid network substations have also been transferred to the new system. In the next stage, power line service information, structural data, protection and network calculations and transmission outage management, among other things, will all be integrated into the system. 9) AMS maturity journey PAS55 is implemented. Certication since 2011. The objective is to implement ISO 55001 from 2016. ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation The objective is to implement ISO 55001 from 2016. 11) Targets and change management The srcinal goals were to make cheap energy. The push for higher reliability came from owners, not the regulators. 12) Certication for entire AMS, or just for some sub-processes? No info available for WP2. It seems that includes all sub-processes. LESSONS LEARNED 13) Quick wins Success was achieved by having a long term main goal, but breaking it down into manageable sub-projects, each followed by a ‘go/no go’ gateway decision point. It worked! Fingrid realised also that their Tech Specs were excellent but there was no line of sight to the AM Strategy. Now have a hierarchy of plans/documents that works. IT project represents a big push on Knowledge Management. Fingrid is better able to measure performance. They have key high-level indicators very visible on their web site. Another benet was closing of gaps. Fingrid AMS supports the main business goal of ‘making cheaper energy’ and that is a benet to customers. 14) Big challenges/barriers Challenges: → →
The certication process takes time (PAS55 took them about 4 years) Because Construction and O&M are outsourced, how to deal with outsourced services is an issue and caused lots of discussion in the past with Lloyds Register (assessors).
Data requirements are included in the contracts. After some years, Fingrid realised that a hands-off approach was risky, so have invested in being an ‘intelligent client’ (eg analyses all data). Efforts being made to measure competencies. Business case for PAS55; ‘the most difcult part’.
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15) Risks and critical success factors Performance measurement is key – simple high level supply targets (no interruptions). Data/Information ‘is the cornerstone of good asset management. → → → →
Both inventory and condition data is kept at high level of accuracy/quality Skilled interpretation of raw data provided by contractors is carried out internally by Fingrid experts IT is important for managing inspections, online measurement They use a ‘Master Data’ (single source of truth) principle
Because the Industry is regulated, the Regulator considers monitoring and controls – but so far this has been ‘light touch’ because the business is so successful! BENEFITS TO ORGANISATION 16) Structuring the strategy Better able to measure performance; Fingrid has key high-level indicators very visible. Data control has a key role for years. 17) Design for maintenance No available information. 18) Whole lifecycle approach No relevant info. The ‘quick wins’ are described in point 13.
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. HIGHWAYS ENGLAND UK CONTEXT 1) Nature of the assets Strategic road network. Road assets along 6,880km of motorways and major A roads.
The Strategic Road Map
2) Quantities Their asset base is highly complex including: → → →
→ →
35,040km2 of road surface 12,000km of embankments and earthworks 18,500 bridges and built structures – 23,040km of barriers 150,000 technology assets and signs 33,600km of drains.
But the age and rate of deterioration will always be uncertain. 3) Type of organisation Highways England Company Limited (Highways England) is a corporate body/company limited by shares, and wholly owned by the Secretary of State for Transport. External drivers/stakeholders: ORR – The Monitor and Transport Focus –The Watchdog New focus groups being formed – stakeholder engagement group. Future: will work with Transport Focus. 4) Size and ‘birth’ date Highways England (HE) was established on 8 December 2014 as a company. Assets Gross Replacement Cost is £115bn. Staff number (Annual Report 2013-2014, page 96): 3,350. 5) AMS operating in one, or several companies One, with signicant outsourcing. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place HE published: a Strategic Business Plan 2015 to 2020, a Delivery Plan 2015 to 2020 and an AM Policy has been drafted and is being signed off. SAMP draft is under development – due in March 2016. Next tier is AMPs at Regional level, then by asset groups. Regional Director = Asset Steward (generic term, delegated as the asset owner). 30 year model for Lifecycle AMPs. First 5 year period planned in detail – To be produced for each Region (RAMP) – will be tactical – has leading/lagging Indicators. 19 Guiding Asset Management Processes. Compare the former way (standards and compliance) with new way – assets- customers – other stakeholders. Aim is for investment programme NOT to be reactive. Aim for cross-asset optimisation. Balancing stakeholder requirements eg safety. 7) Resources dedicated to AM NDD responsible for all network maintenance, operation and use. Customer Operations responsible for dealing with the public on the ground. Variety of contract forms (MAC, DBFO, ASC etc.). New model (Area 7) is more hands-on for HE as it takes in-house asset management functions including responsibility for identifying investment need and developing asset systems and lifecycle plans.
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8) Existing AM IT support tools HE key enablers of their new AM approach will be a comprehensive and Integrated Asset Management Information System (IAMIS). This will be introduced in stages over the next ve years, adding one asset type after another as they gather improved data and the associated sub-systems come online. For this purpose HE will submit an implementation plan in March 2016 to demonstrate how they are improving asset information quality. 9) AMS maturity journey ISO 9001 not adopted. Principles of ISO 55000 are being adopted. BMS – yes – documented processes, compliance is variable. ‘ISO 55000 may not be as daunting as they rst thought’. Their AM capability will be measured through a series of AM maturity assessments carried out across RP1. Resource needs and competencies are not measured as such. Generic behavioural measurement under CPD, not AM specic Plan – competency gaps for individuals (follows London Underground example). All NDD AM Group staff undertakes the IAM Certicate. For operational planning and control processes there is a multi-tiered approach with 19 draft processes mapped and now under consideration (eg information management, asset risk and criticality, system review). Non-conformities handled on the ground (incidents, maintenance and repair). Supplier compliance is strong, internal compliance is weak. There is also work in progress regarding ‘Level of Service’. It is dened and measured, and targets set trough KPI Road User Satisfaction and historical NRUSS and regional ARUSS surveys. Road Investment Strategy (RIS) comprising Performance Spec and operating Licence (NB this includes reference to consistency with ISO 55000). ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation Plan consistency with ISO 55000 (by 2020, end of 1st Reporting period). Ultimately plan formal compliance with ISO 55000. PAS55 now dropped. Previous PAS55 Gap analysis carried out within HE AIG as rst step. HE asset management guiding principles will be outlined in their AM Policy, which was issue in August 2015. This will be followed by the AM strategy in April 2016. Communication about the asset management system is handled internally trough Newsletters, Management Plan and Communications Plan. It is treated as a ‘project’ with 2020 target date. 11) Targets and change management There are change management processes with NDD having central monitoring role. →
→
→
Risk Management is embedded in the organisation’s asset management approach, but improvements are identied Annex 25 which is used in ASC contracts for O&M currently requires PAS55 level 2 maturity within 6 months with an improvement plan to level 3 maturity within 2 years. HE looking to align this to ISO 55000 in future ASC contracts requires. Signicant change in operating model for maintenance. The new model will directly manage both routine maintenance and the coordination and planning of capital renewal schemes. This change in approach will require a different internal capability to reect the different role that HE will be being adopting.
→
Increase the direct (internal) knowledge of the asset and the factors which generate waste and inefciency. Work more closely with the suppliers of activities on the ground in order to improve the quality and value for money of these services. In the new model the works which were previously undertaken by the maintenance contractor will be split into 3 principle packages: design and term maintenance for suppliers + management and direction of operations insourced. 12) Certication for entire AMS, or just for some sub-processes? Entire AMS.
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LESSONS LEARNED 13) Quick wins By increasing the direct exposure to works, HE will be better placed to ensure the optimisation of the work undertaken. This will positively impact the quality of workmanship that has a major impact on the durability of asset renewals which implies less needs of future maintenance. 14) Big challenges/barriers The gap is understanding what an AMS is within the various departments of HE. Need to communicate a common AMS and meanings. Current high reliance on outsourced services, need more technical skills in house. Area 7 model is one of the rst steps. Also building up internal AM team skills. 15) Risks and critical success factors The biggest risks to the assets faced by the organisation depends on the stakeholder, but are mainly related to Safety – road users and road workers, Compliance with the Licence, Reputational and resilience (eg ooding/snow/ice). BENEFITS TO ORGANISATION 16) Structuring the strategy No available information. 17) Design for maintenance No available information. 18) Whole lifecycle approach The organisation uses the concept of ‘Whole Life Cost’ for optimising its investment in the asset, but needs improvement. Pavements are OK, other assets less good. This is required under the Licence! The network infrastructure asset as reported in the annual accounts is based on depreciated replacement cost (DRC), as required by the FReM.
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. NATIONAL AIR TRAFFIC SERVICES NATS UK CONTEXT 1) Nature of the assets NATS has to manage all the infrastructures inherited from UK Civil Aviation Authority (CAA), which is very extensive and much of it risk-critical. Signicant physical assets including: Trajectory services, Oceanic, Surveillance, Controller Comms, Navigation, Core services, Simulations, Service Management, Workstations, Flow optimisation, Airspace, Facilities Management, Business IT assets. Also data assets, which are business critical. Assets ownership is described in Terms of the Licence. 2) Quantities Asset portfolio has 282 asset types and 174 sites. 3) Type of organisation After splitting from UK Civil Aviation Authority (CAA), National Air Trafc Services (NATS) begun a new business regulated. It is a 50:50 government: private owned company. NATS have a Licence to manage all UK controlled airspace (excludes approach/take-off zone at airports). NATS provides internationally-recognised training services. Major stakeholders: Air Navigation Service Providers (ANSPs), Airlines, Passengers, Other air trafc organisations (training) and Airports. 4) Size and ‘birth’ date NATS was split from the UK Civil Aviation Authority (CAA) in the 1990s. Total staff 2,000 at Whiteley +3,000 other sites. 5) AMS operating in one, or several companies One company. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place All the processes and documentation required by ISO 55001. NATS Business Plan delivers all elements required in a SAMP. A Tactical Operating Model is under construction. An aim is to ‘shrink’ the ‘line of sight’ from strategy to operations. A Service Investment Plan is required to be submitted to government. This covers benets to service capacity (airlines), safety, environment, risk etc. AM Policy, AM Objectives, SAMP, AMPs and key business processes are in place within the business plan. Due to the huge number of stakeholders, communication is constant and on-going. NATS has a Business Management System (BMS) in place, compliant with ISO 55001. Communication about the asset management system is handled internally trough: asset Review Board holds Assurance Workshops, Communication to Government eg Service Investment Plan and Lots of communication with other stakeholders. For operational planning and processes control: Minimum Manual Intervention rather than fully automatic.
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7) Resources dedicated to AM To ensure resources and competences needs, key role proles have been developed. Emphasis on changing behaviours of all staff. Regarding responsibility for operation and maintenance there is an extensive outsourcing of operational aspects, under varied arrangements. NATS has strong governance in place (nancial criticality analysis on all suppliers). NATS had 47 asset managers srcinally, now after breaking down silos and rationalising job titles, have 5 ‘asset managers’. 8) Existing AM IT support tools Systems – use SAP (lifecycle), CONCEPT (facilities) NATS has management dashboards. 9) AMS maturity journey In 2001, NATS decided to embark on PAS55, and processes started to be aligned. Around 2006, NATS drew up a roadmap to attain Level 3 competency under PAS55. Certication was successfully achieved in 2011. When subject to review, it was decided not to renew PAS55 but make the change to ISO 55000, which was about to be formally published. NATS adopted a ‘journey’ approach, not overnight change (like introducing a ‘virus’ in the organisation!). Clarity rst, then consistency. Did not have to make a business case for PAS55, but AM was introduced with a nancial motivation. ‘No brainer’ to adopt ISO55000 when PAS55 renewal came up (2013). Also saw synergy by linking to other Quality Systems – audit of ISO 55000 combined with 9001, 14001, 18001 (soon to add 27001). ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation NATS became (it is believed) the 2nd company in the world to be ISO 55000 certied in January 2014. AMS already in place. 11) Targets and change management NATS has change management implemented. 12) Certication for entire AMS, or just for some sub-processes? Entire AMS. LESSONS LEARNED 13) Quick wins No information available. 14) Big challenges/barriers No information available. 15) Risks and critical success factors Risks are linked to projects, with mitigations in place. Bigger risks: Data – real time, xed assets, archives, records management Negligence – ‘go to jail’ Incompetence – ‘Licence will be revoked’ Insurance is important (based on asset inventory) Poor service (condition of assets, documentation up to date)
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Level of service is delivered via specied ‘service lines’: → → → → →
NATS Airports NATS Consultancy NATS Defence NATS Engineering NATS Information.
BENEFITS TO ORGANISATION 16) Structuring the strategy No available information. 17) Design for maintenance No available information. 18) Whole lifecycle approach Reference made to 2% year-on-year savings in operational costs. No specic reference to WLC.
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. TFL SURFACE TRANSPORT FOR LONDON UK CONTEXT 1) Nature of the assets
2) Quantities 2,600km of highways; 6km trafc of tunnel; 1,800 structures; 1,100km footways; 40,000 trees; 40,000 street lights; 6,000 lights; 138 bridges variable&message signs; 2,500ofbus countdown signals; 19,250 cycle docking points; 430km of vehicle restraint systems; 45,000 gullies; 100km of drains; over 700 acres of grass, trees & verges. 3) Type of organisation (Pseudo) Public organisation that owns and operates the assets. 4) Size and ‘birth’ date Created in 2000 as part of the Greater London Authority. Staff: 3,000. All delivery is outsourced. 5) AMS operating in one, or several companies One (TfL), but organised in 3 Directorates (Surface Transport, London Underground, London Rail). AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place TfL has high level policies and/or objectives that inform/direct its AM. The AM objectives are embedded in TfL policy. The Asset Management Plan is published and is largely PR, but each asset has its own strategy and plan. Asset investment programme links into wider TfL Annual Business Planning, spending reviews, etc. 7) Resources dedicated to AM 500 AM staff. There is an Asset Investment team, possibly a little under-resourced for potential full scope of AM activity. TfL dened roles and responsibilities for the implementation and support of asset management. The AM competencies are dened in staff job descriptions (adopted/adapted from London Underground). TfL ensures appropriate provision of skills and levels of competence to support the implementation of the asset management system through ‘role families’ (again from LU); denes competencies and training requirements which are reected in job descriptions.
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Have established bespoke AM training at 3 levels to match competence requirements of roles: Level 1 – intro to AM ½ day. For all in TfL business, approx 1,000 attended to date Level 2 – principles of AM. 3 days. Suitable for IAM Certicate Level 3 – 5 No. 2 day modules. Suitable for IAM Diploma Training programme has been a big success and ensures common understanding/language with respect to asset management. 8) Existing AM IT support tools A whole range of systems (including SAP) are used to support the implementation of AMS. Plan to rationalise as partreview of BIM/IMM data & information required to support AM To is continually reviewed. under as partprogramme. of BIM/IMMThe implementation programme to improve rigour. support AM decision Also making, data is collected from systematic surveys and the use of asset information systems, as well as other analysis tools, etc., inform planning and programme development. Where data/information for AM purposes needs to be based on risk assessment, it’s complete and current (80%), otherwise it isn’t (20%). 9) AMS maturity journey TfL procures Lloyds Register in May 2014 for a 3 year contract to provide AM maturity and certication services. Primarily an ISO 55000 certication service (gap analysis and maturity assessment). 25% of activities/processes are compliant with ISO 55000, but 75% are not – principal issue is insufciency of management system. TfL’s certication plan: renewal LU in March 2015. Surface assets to have gap analysis in June 2015. TfL still needs improvements on: →
→ →
→
Engagement with stakeholders to understand their needs and expectations. There is a Customer Experience Team established; surveys, monitor oftwitter feeds etc – informs asset strategies and priorities Proactivity with communication with LoHAC suppliers Actively plan and manage communication assets, its management and the asset management system and objectives, to relevant staff, suppliers, third parties and stakeholders Management system
→ →
The process to manage, maintain review AM to procedures Data/information accuracy, where and it doesn’t need be based on risk assessment (20%).
ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation Seeking ISO 55000 certication. Total completion by 2017. 11) Targets and change management The change management is established on TfL business processes. 12) Certication for entire AMS, or just for some sub-processes? Entire AMS. LESSONS LEARNED 13) Quick wins Demonstration of benets engenders trust/faith in approach which facilitates securing appropriate budgets. Efciency and effectiveness in delivery. First year’s savings were sufcient to cover front-end implementation costs. See performance success graphs inAM Slide Pack_Sept 2015 in Evidence/Background documents. 14) Big challenges/barriers → Organisational buy-in at (most) senior level of management. → Creation and maintenance of fully documented management system (not yet achieved but in progress). → Selling benets of AM across the whole business, ie nance, management, boards. → Need appropriate budget for AM to be effective.
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15) Risks and critical success factors Critical success factors: → → → → →
Senior champion for AM at Board level Establishment of dedicated team/resources to lead and progress AM implementation Being able to provide evidence to demonstrate benets of AM approach Failures to highlight need for AM approach (Hammersmith yover) Regular audits to the AMS.
Risks: →
→
Principal risk is nancial. Risk that asset knowledge is not adequate – ‘foreseeable’ events not picked up/prevented. ‘Don’t know what you don’t know’. Difference in levels of understanding/sophistication/ completeness between assets. Eg recently instigated inspection of trafc signals to address potential risk and consequence post failure. Implementation of AM for VRS another example. Access to network (working window) limits work that can be carried out on the asset. TfL does not have procedures for identifying non-conformities and consequent corrective and preventive actions.
BENEFITS TO ORGANISATION 16) Structuring the strategy Improvements/lessons-learned are identied and implemented on a case by case basis. 17) Design for maintenance No available information. 18) Whole lifecycle approach TfL uses the concept of ‘Whole Life Cost’, or rather ‘Whole Life Value’. TfL is in the process of producing its own handbook on ‘Whole Life Value’.
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. M
CONNECT PLUS UK
CONTEXT 1) Nature of the assets Highways assets along 400km of network length (200km on M25 and 200km of trunk roads in and out of London). 2) Quantities About 150,000 assets, organised in 13 asset categories, including main asset as such: 400 linear kilometres (3,200 lane x km) pavement and 40km of footways, 1,750 structures of which 760 bridges, 1 cablestayed bridge, 5 tunnels, 18,000 street lights, 8,000 signs. 3) Type of organisation Connect Plus Concession contract with 30 year responsibility for assets. A specialist Construction JV place for initial widening (now completed). A framework of suppliers in place for Connect Plus renewals and Connect Plus Services has separate suppliers. Responsibility for major asset renewals retained by Connect Plus (Concession level) with asset renewals linked to maintenance transferred to Connect Plus Services (O&M specialist). A specialist O&M Contractor in place. 4) Size and ‘birth’ date Largest ever contract with Highways England (£6.2bn) awarded to Connect Plus in May 2009. M25 is one of Europe’s busiest motorways. It is a ring road around London and local commuter route. Carries 15% of all UK motorway trafc. It is a hub of UK’s motorway network and allows access to two of the world’s busiest airports. The contract includes: → →
Widening of the motorway (Sections 1 & 4) and refurbish Hateld Tunnel Operate and maintain the network for 30 years.
The annual capital expenditure on the assets is £50m (ca. £40m of Connect Plus investment and £10m of Connect Plus Services investment). Connect Plus staff: 25; Connect Plus Services staff: 700. 5) AMS operating in one, or several companies AMS operates in 2 companies – Concessionaire and Operator. Operator in charge of data collection (inspections, surveys) and preparing the draft AM forward plan, to be challenged and endorsed by the Concessionaire for major civil assets (pavement, structures...). Operators retains the turnkey responsibility for equipment and ancillary assets. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place An Asset Management Framework is in place (Objectives, Policy, Asset Category Strategies). There is a systematic approach to asset management. The asset management objectives are linked to Project Road Objectives (the overarching objectives the client is trying to secure from the project). There is a rolling annual, 5 and 30 year plan published annually. It contains information in the front of the document relating to their delivery strategy. It is distributed internally, provided to shareholders (through a brieng), reviewed by the client and provided to banks/lenders.
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The structure of the AM operations is: → → → → → →
→
Connect Plus (concession and budget responsibility for majority of renewals works) Connect Plus Framework (responsible for delivering ca. £40m of renewals annually) Connect Plus Design Framework (responsible for specialist designs) Connect Plus Services (O&M specialist with responsibility for 25% of renewals budget) Connect Plus Services inspection providers (external parties responsible for delivering some inspections) Connect Plus Services designers (external designers who provide support for standard designs developed for CP) Connect Plus Services suppliers (responsible for delivering ca. £10m of renewals annually).
Processes and documents areneed loaded onto SharePoint site (One Place). To manage, maintain and review those procedures, processes to be puta in place, following system transition. 7) Resources dedicated to AM Connect Plus staff: 25; Asset management staff: 10 (includes investment, technical, commercial/ procurement). Framework: 3 surfacing, 3 civils and 4 testing contractors and 3 designers. Connect Plus Services staff: 700. Asset management staff: 100 (includes asset teams, inspectors, commercial, in house designers, project managers and works supervisors). A governance statement is in place and is agreed with the client for key organisational roles. Job descriptions are in place for all roles, with required levels of competency. Training is identied as part of the annual Personal Development Reviews. Delivery teams are adjusted according to the scale of investment required through the Asset Management Forward Plan. Improvements could be made to how resourcing decisions are structured/documented. 8) Existing AM IT support tools → A project is currently underway to transition across to new inventory software and a Decision Support Tool. The team managing the transition (includes the Asset Team) is documenting key parts of the system. This needs to be continued → The organisation is currently 2 years into conguring an optimisation tool for generating long term plans linked to performance and hand-back obligations. This will demonstrate how schemes deliver the required outcomes in the long run and support long term planning. Time/location charts are produced over a 5 year period → GIS mapping is used over a 5 year period to identify opportunities to combine renewals projects and generate potential hybrid opportunities with client funded improvement works → Data requirements are included in client standards and our contract → Asset data is collected on both local and client systems. 9) AMS maturity journey → The evaluation of assets is not performed. Assets evaluated mainly based on condition and expenditure (form part of Handback tests) → Currently trying to secure ISO 55000 accreditation. Gap analysis complete based on Institute Asset Management assessment tool → Client objectives are updated annually and a new set of Project Road Objectives are issued. Alignment with Asset Management Objectives is reviewed → Client objectives are linked to their outcomes and road user requirements → Forums are held with operational stakeholders (eg emergency services) and neighbouring networks are engaged through safety forums →
→
→
→
There are a number of different forums (supplier days, R&D forums, etc) and publications in place, but more formal and structured communication is being considered as part of ISO 55000 Suppliers are briefed through a quarterly forum (Collaborative Transformation Steering Group) established as part of the BS 11000 initiative Residents and businesses local to schemes are engaged as part of a structures process and communications plan Staffs are brief in a more ad hoc fashion through meetings and when requests for more structured sessions are requested. A more structured approach to this is being considered in light of ISO 55000 work
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→
→
→ →
→
→
An audit system is in place to capture audit ndings and log corrective actions. There is an annual audit plan in place at concession level and operator level. At concession level around 40% of all audits are focused on asset management. Every 5 years there is also a comprehensive review between the concession and operator Strategic asset management risks are identied at concession level. These are summarised in the Asset Management Forward Plan and shared with shareholders. Project specic risk registers are also in place; A risk register is held at concession and operator level. Risk registers are also shared with the client; Opportunities are identied during the production of the Asset Management Forward Plan. These are assessed with high ranking opportunities receiving funding Research and Development funding is made available, with funding drawn down through business case submission Principal asset’s risks are identied and include: → Catastrophic asset failure impacts road users and reputations → Safety risk to staff and contractors working on projects → Lack of budget sufciency due to incorrect tender assumptions → Poor data leads to incorrect investment and decision making → Lack of routine maintenance undermines asset investment → Risk of rising prices → Poor management of changes to our asset inventory.
ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation No information available. 11) Targets and change management → Improvements can be identied through audits → Certain renewals projects are selected for a balanced scorecard review whereby project participants score the project, discuss positive and negative outcomes and generate an action plan which is shared with the supply chain → Strategic change management is generally driven through the annual business plan – asset management objectives are included to drive change in asset management → Change management at project level is managed through a gateway process. 12) Certication for entire AMS, or just for some sub-processes? No information available. LESSONS LEARNED 13) Quick wins Implementation of ISO 55000 has increased the awareness of the ‘softer’, but very important, aspects such as leadership, skills/competency and communication. Initially the AMS was more focused on physical assets and more technical aspects of asset management. People understand AM objectives so can make technical, procurement and R&D decisions that deliver the intended outcomes. 14) Big challenges/barriers Challenges: Securing understanding and alignment of objectives of the teams that are involved in the end to end asset management process, from inspectors right through the contractors and on site supervisors. 15) Risks and critical success factors Critical success factors: →
→
The data has been reviewed as part of the project to transition to the new IT system. Certain data gaps have been identied and plans are now being put in place as part of business as usual activity to close these gaps Data quality varies across different asset categories. A lot of the data has been inherited from previous agents. Where system functionality has historically been poor, data sets generally seem to be in poor states. Drainage data (repeat records) and structures (missing data) are particular issues.
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BENEFITS TO ORGANISATION 16) Structuring the strategy → Getting cross team input into the Asset Management Forward Plan and developing simple models to communicated our asset management approach → Putting in place a Gateway sign-off approach to scheme delivery so that asset team sponsorship of schemes continues into delivery → Work is underway to develop an Asset Data Strategy to identify the key data required (including aspects of the Decision Support Tool) and its impact on investment and decision making. 17) Design for maintenance No available information. 18) Whole lifecycle approach Whole life costing is used. The whole life costing approach uses duration of contract and long term handback tests as part of the analysis.
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. BALFOUR BEATTY MOTT MACDONALD JV, BBMM UK CONTEXT 1) Nature of the assets Road assets. 2) Quantities → 1,303, 2 c-way km → 2,223 bridges/structures → 33,000 gullies → 11,650 signs → 4,971 technology assets → 16,995 lighting columns → 1,182km road restraint systems → The ownership of the assets is public – Secretary of State. 3) Type of organisation BBMM is responsible for maintenance and improvement of all physical highway assets in specic areas (Area 10). It acts as ‘Asset Custodians’. The top 5 stakeholders for Area 10 are: The Trafford Centre, TfGM, Manchester Airport, Bootle Docks, Liverpool, Blackpool (although not in Area 10 still has an impact on the network), Liverpool Airport. 4) Size and ‘birth’ date Organisation for Area 10: Total number of staff = 382. Annual Turnover = £70m. 5) AMS operating in one, or several companies One, but does not covers the entire AM process. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place AM Policy, AM Objectives, SAMP, AMPs and key business processes are in place, but under slightly different names. 7) Resources dedicated to AM AM staff = 26 in core team. Regarding Operation and maintenance, BBMM outsource to supply chain: → → →
Schemes (90%) AMOR (c.15%) Design (50% if incl Mott Mac).
The Contractual framework is ASC (Asset Support Contract) and MAC (Managing Agent Contractor) contract formats. 8) Existing AM IT support tools No information available. 9) AMS maturity journey Areas 4 and 10 are both PAS55 accredited since 2014, refreshed in 2015. It took 2 years to achieve PAS55. BBMM operates a suite of AM IT tools to monitor asset inventory and condition and to model forward investment. They are also required to operate and keep updated Highways England AM IT tools for key asset groups such as pavements, structures, drainage, geotechnical and ITS.
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The value of assets is calculated centrally by Highways England and BBMM is not aware of the current gure. Highways England has a new emphasis on customers, and will increasingly be driven by customer perception. This overseen through Transport Focus and the Monitor (ORR). BBMM is increasing its emphasis – evidenced by appointment of new staff member overseeing key stakeholders schemes. The view is that if ISO 55000 is adopted it would only require minor changes to BMS processes. Resource needs and competencies are measured through staff appraisal process. Communication about the asset management system is handled internally by holding dialogue meetings and briengs with other teams, eg concerning the forward programme and ‘framework’ (copy provided). CPF (Contract Performance Framework) targets set by Highways England. Measured monthly. ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation BBMM has no formal commitment currently to adopt ISO 55000, but has made a promise to that effect in the bid for next Area 4 contract. The marginal extra cost of moving to ISO 55000 has not been calculated. The current plan/timetable regarding the fully implementation of an Asset Management System, is to have the PAS55 project complete and successful. 11) Targets and change management Targets: → →
→ → →
Area 10 to be the best performing area Working on behalf of the Highways England to modernise, maintain and operate the network as outlined in their strategic business plan BBMM takes safety seriously and embrace a zero harm culture Delivering a reliable network and responding to incidents effectively Sustainability is at the heart of the business.
12) Certication for entire AMS, or just for some sub-processes? For all elements of PAS55 excluding policy and strategy. LESSONS LEARNED 13) Quick wins Benets of PAS55: → → →
Overall improved delivery efciency Improved team cohesion Client sees more added value, but little ‘thanks’ on record.
14) Big challenges/barriers BBMM will work to improve the communications between BBMM and the main stakeholders, identifying where gaps exist and developing existing relationships to assist in the delivery of timely, informed and effective communications. Because all of BBMM staff, whether out on the network or ofce based, are ambassadors for the work that is performed, an improved customer training will be putted in place. Improved internal communications. For the nancial year 2016/16 BBMM is scheduled to deliver approximately 260 schemes. Each scheme will be assessed as to develop a Communications Plan to assist in their smooth delivery.
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15) Risks and critical success factors Good communication is integral to the strategy and the success of the Area 10 service contract. Employee engagement is key to achieving a successful outcome. Major risks: → → →
Failure of a major structure Lack of funding/investment/resources Claims (and repudiating them).
‘You can have the best AMS in the world but if you don’t have the resources, it risks failing’ BENEFITS TO ORGANISATION 16) Structuring the strategy No available information. 17) Design for maintenance No available information. 18) Whole lifecycle approach The organisation use in principle the concept of ‘Whole Life Cost’ for optimising its investment in the asset, but there are still ‘big gaps’ and what they do is not ‘truly’ Whole Life. Investment still not high enough, so in most cases solutions are ‘Do Minimum’.
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. ASFINAG SERVICE GMBH DATA COLLECTED IN MARCH AUSTRIA CONTEXT 1) Nature of the assets Highways of Austria – road assets along 2,199km network length. 2) Quantities → Lanes: 11,846km → Bridges numbers: 5,175 → Bridge area: 5,713,451m² → Tunnels: 383km; 164 un → Noise protect barriers area: 4,200,000m² → Connection points: 366 → Half connection points: 56 → Annexions: 38 → Motorway operation and maintenance facilities: 43 → Toll stations: 6 → Control centres: 9 → Motorway service areas: 86 → Rest areas: 47 → Parking places for HGVs: 6,600 → →
Parking areas: 107 Park & Drive areas: 41.
3) Type of organisation ASFINAG is a state-owned company that plan, nance, build, maintain, operate and collect tolls on the entire primary road network in Austria. ASFINAG Holding Autobahnen- und Schnellstraßen-Finanzierungs-Aktiengesellschaft (Motorway and Expressway Financing plc)
Construction ASFINAG Bau Management GmbH
Operation ASFINAG Service GmbH
ASFINAG Alpenstraßen GmbH
Tolling ASFINAG Maut Service GmbH
Consulting
Tolling
ASFINAG Commercial Services GmbH
ASFINAG European Toll Services GmbH
4) Size and ‘birth’ date ASFINAG was founded in 1982 and has 2,700 employees. The annual capital expenditure (2014) on the assets are about: → → →
380 Mio. EUR annual expenditure for new lanes and new roads 460 Mio. EUR annual maintenance and reconstruction expenditure 70 Mio. EUR annual Investment expenditure.
The annual maintenance expenditure is about 460 Mio. EUR. The annual revenue is 1.800 Mio. EUR.
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5) AMS operating in one, or several companies See (3). AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place Public tender for measurements of condition parameters of the pavement and of the inspections of objects. Framework contracts. ASFINAG has an asset management strategy which directly links to the company strategy. High level policies and/or objectives that inform or direct its implementation of asset management: → → → → →
Ratio of construction sites in our network Safety of construction works Safety of pavement (eg skid resistance) Cost certainty (concerning construction site) Annual prot.
Regarding communication: → →
the needs and expectations of the road users are identied with opinion polls (road users); with annual reports, information to the staff, planning manuals for the suppliers and delivery partners.
There are dened roles and responsibilities in the Department for Asset Management. 7) Resources dedicated to AM 53 employees (incl. overhead and secretary). Department ASSET Management is responsible for condition survey and assessment, project development and engineering (reporting, strategy and quality assurance). Subcontractors: → → →
2.3 Mio Eur/year for period inspections and checks 0.5 Mio Eur/year for pavement condition scans 0.2 Mio Eur/year for asset management systems and software.
In house: →
6.6 Mio Eur/year for period checks, coordination of construction measures, overhead.
Asset Management Head of Department Christian Honeger Assistance of Department Andrea Heinrich Project Development Walter Neumann
Engineering Christian Honeger
• Ordering function for construction work • Bundling and coordinating requirements for IIP (NP, BE, EE, MSG) preliminary investigations • Project delivery
Focus to project management and coordination
• Support for other teams • Quality assurance • Operating • Infrastructure Management Tool (IMT) • Technical Inventory data EXP. (TBV) • Reporting • Maintenance strategy Focus to strategy, reporting and controlling
Structure Maintenance Management • • • •
Condition detection and assessment (test and control) Project requirements and denition Take cover of structures and routes (new/after refurbishment) Strategic long term corridor planning Team East Team Leader, Michael Anthofer
Team North Team Leader, Robert Ritzberger
• Incident management (emergency measures decision makers/requestor) • Take care of infrastructure database • Technical assessment of special transports Team South Team Leader, Michael Pucher
Technical focus to structures and pavement
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8) Existing AM IT support tools ASFINAG is currently introducing a new database system to replace the existing system. In dened intervals the condition of objects and components, trafc data and their developments, construction data and type of objects, etc., are collected and recorded in databases. With calculated condition developments and with stored sequences of action, medium and long-term forecasts are calculated. It can be predicted depending on the default condition developments in dened annual budgets or other side by dened condition the necessary annual budgets. The software calculation model aims to minimise the lifecycle costs. The organisation has dened the data and information required to support asset management and it is completed and updated. It has also developed in most elds, documented procedures and records management to support the implementation of asset management, which are maintained and reviewed in dened intervals. 9) AMS maturity journey In 2014 ASFINAG determined the replacement costs of the assets, according to EU directive on road charging and the fair value. The replacement costs are 34,389 Mio. EUR (status 2014). The fair value is determined using the average condition and the replacement cost and in 2014 was 23,353 Mio EUR (the average condition is 2.6 (very good =1, very bad = 5). The AM strategy is in line with ISO 55000 (although they are not certied, but they follow the main objectives of ISO 55000) and it is aligned with the organisational policies and/or strategies. The policies and/or plans for asset management were developed and are available to the most stakeholders. The level of maturity may be about 70%. ASFINAG is currently working on a strategic road map to improve the asset management system and tools. ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation No information available. 11) Targets and change management The organisation regularly audits the asset management system and has procedures for identifying nonconformities and consequent corrective and preventive actions. After the audits updates on the AMS are performed. Regarding the change management process at certain time intervals, the changes are recorded in a manual, with the support of the quality management department. 12) Certication for entire AMS, or just for some sub-processes? No information available. LESSONS LEARNED 13) Quick wins Transparency and traceability of: → → → →
Achievement of asset management and company objectives Budget for maintenance and refurbishment Effectiveness of construction measures Development of the condition of our network.
14) Big challenges/barriers The main challenges were: →
→ → →
To introduce a better understanding, that asset management needs a long term focus to make the right decisions now To have appropriate management systems and tools To deal with different interests (long term, short term) To deal with the inuence of a professional Asset Management system to the company.
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15) Risks and critical success factors Dealing with different interests and responsibilities in the company. Regarding risk and opportunity management, for example regarding Tunnel Risk Management: with long-term casualty survey data, type of tunnel equipment, type of trafc management, trafc and trafc development, etc. the probability of occurrence of a failure for every Tunnel is calculated. The principal risks to the asset faced by the organisation are: Physical → Landslides and avalanches → Extreme accidents. Resources (People/Financial) → Change the funding policy → Economic crisis – fall in tolling revenue. Environmental → Accordance to national regulations and laws (eg noise protection, air and water protection, hazardous substances) → Exchange of technology in cars (autonomous self-propelled cars). Political → Change of interests of stakeholders and owners → New policy of the EU. BENEFITS TO ORGANISATION 16) Structuring the strategy No available information. 17) Design for maintenance No available information. 18) Whole lifecycle approach The organisation uses the concept of ‘Whole Life Cost’ for optimising the investment in the asset.
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. EGIS ROAD AND TUNNEL OPERATION IRELAND ERTO DUBLIN TUNNEL, DATA COLLECTED IN MARCH IRELAND CONTEXT 1) Nature of the assets ERTO manages three project areas: 1. Dublin Tunnel 2. Motorway Trafc Control Centre (MTCC) 3. Jack Lynch Tunnel. The assets are in public ownership. Under the contract agreement, Transport Infrastructure Ireland have assumed ownership of assets (operational transfer of asset ownership). 2) Quantities 1. Dublin Tunnel It is a twin bore tunnel of 4.5km in length with a height clearance of 4.65m. The assets are divided into the following groups: → → → → → → → → → → →
Tunnel and other structures Roads and associated infrastructure Ventilation systems Lighting systems Drainage system Fire-ghting system Communication system Trafc control and SCADA system Electrical and emergency power system Service buildings and plant rooms Toll collection systems.
2. Motorway Trafc Control Centre (MTCC) There are a total of 98 MTCC assets, including servers, Emergency Roadside Telephones, monitors, PABX modules, patch panels, controllers and workstations. 3. Jack Lynch Tunnel The tunnel is 0.61km long and has two cells, each with two trafc lanes and two footpaths, and a central bore for use in an emergency only. The assets are divided into groups as indicated for Dublin Tunnel, with exception of toll collection systems. 3) Type of organisation Egis Road and Tunnel Operation Ireland (ERTO) does not own assets. ERTO manages assets on behalf of asset owner for the duration of the project (Operation and Maintenance of Tunnels and Motorway Trafc Control Centre). 4) Size and ‘birth’ date ERTO employs a total of 98 staff. The annual maintenance spend (corrective and preventative) for DT and JLT respectively is 2.2m and 1.8m. This includes all costs – staff, sub-contracts, spares, etc. Egis Road and Tunnel Operation was established in November 2005 as Transroute Tunnel Operation Limited, part of Groupe Egis. Transroute Tunnel Operation, and later Egis Road and Tunnel Operation, have been involved in the operation and maintenance of Dublin Tunnel since 2006. The initial service period was for 60 months. In 2014, ERTO won a tender for operation and maintenance of Dublin Tunnel, Jack Lynch Tunnel in Cork, and the Motorway Trafc Control Centre. The OMTTCC Term Service Contract commenced on the 20th February 2015 for a duration of six years with a possible extension of up to four years.
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5) AMS operating in one, or several companies One, but on the 3 projects areas. AM CURRENT STATUS (FORMAL, OR INFORMAL AMS) 6) Processes and documentation in place ERTO is not responsible for any cap ex above 10k, all works under 10k are considered maintenance costs. Above 10k ERTO propose a cap ex programme for the following 12, 24 and 36 months to be agreed with the Service Manager (the Client’s representative). The cap ex for 2016 is proposed at 9,65k, 2017 is proposed at 1,025m. Below 10kand ERTO assume, ERTO look at obsolescence issues, lifecycle, degradation in service/safety/ reliability environmental factors. Also if the maintenance required is becoming unreasonable ie what you would reasonably expect to spend on maintaining a system becomes excessive, then we present this to the client. Outsourcing of asset management operations is carried out under a standard form contract developed by Egis and approved by the Employer (TII) as was required by our Term Service Contract. For critical systems the contracts include for call out arrangements to ensure defects are addressed timeously. ERTO has been applying a PDCA (Plan, Do, Check and Act) approach to asset management. The AM objectives have been incorporated into the Strategic Asset Management Plan, and backed up by a set of AM KPIs. The AM principles and goals have been incorporated into the company’s Integrated Management System Policy. The Client’s (asset owner’s) Asset Management Policy has been incorporated in the ERTO’s IMS Policy as annex. A set of AM procedures has been developed (or the existing documents updated) and included in the project library (document control system). The contractually-inuenced AMS requires ERTO to ensure the communication with AMS stakeholders is effective, therefore a care has been taken to ensure availability of the AM documentation to the AMS stakeholders. All documents have been included in the project library, ie the Contractor’s Plan. As per initially adopted hierarchy, the AM documents have been structured at 4 levels, ie: → →
→ →
Level 1 – high level management and governance documents (ie IMS Policy, IMS Manual, SAMP) Level 2 – high level plans and business management procedures (ie AM Communication Plan, AM Risk Identication and Management Procedure, Asset Management Plans, Maintenance Plan, Internal Audit Procedure) Level 3 – operational manuals and guidelines Level 4 – operational procedures and forms.
The AMS documentation is available to the Client, employees, and – as far as applicable - subcontractors and other interested third parties. ERTO has developed generic Asset Management Plans individually for each project area (Dublin Tunnel, Jack Lynch Tunnel and Motorway Trafc Control Centre). The documents provide a planning framework and address specic requirements included in the contract agreement for development of AM Plans. Additionally, ERTO has developed, and maintain, Annual Asset Management Plans for each system/asset group, and submits them annual to the Service Manager (Client’s representative) for approval. ERTO has developed and implemented a procedure for management of documents and records, dening the principles and processes for accessing, reviewing, updating and archiving of documents. The documents are reviewed annually, unless a need for revision is identied through internal audits, or following change in legislation, or following review of the AM risk register. ERTO has implemented 3 management systems, ie: → → →
ISO 9001 Quality Management System ISO 14001 Environmental Management System OHSAS 18001 Occupational H&S Management System.
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The company is in the process of implementing ISO 27001 Information Security Management System. Ultimately, the company’s portfolio of management systems, ie Integrated Management System, will include 5 ISO-compliant systems. Communication has been an important element on the agenda throughout the implementation process. It has been planned (in the ISO 55001 implementation programme), and subsequently put in place. Communication with the key stakeholder of ERTO AMS, ie the Client (asset owner), is planned and managed in line with the contractual requirements, and as stipulated in ERTO’s Communication Plan. The regular means of communication with the client include: →
Monthly review meetings
→
Workshops for review of AM Strategy and AM Objectives Formal communication via contract management software AMS Review meetings – although the Client does not participate in review meetings, the report is submitted as part of project records library.
→ →
7) Resources dedicated to AM Direct responsibility for asset management lies with the Maintenance department (15 staff). ERTO Maintenance department includes: → → → → → → →
Maintenance Manager (Asset Management Leader) Civil Engineer Reliability and Planning Engineer Maintenance Management Software (MMS) Administrator Mechanical & Electrical (M&E) Technical Services Coordinator M&E Technicians SCADA Software and Hardware Technicians.
The resources necessary for implementation of the ISO 55001 have been identied at the planning stage of the implementation project. ERTO has adopted an inter-departmental approach, ie the AM process is led by the Maintenance department, but planning, coordination and documentation is overseen by the QA Manager. The QA Manager ensures that all requirements of the ISO standard are identied and addressed, and that the PDCA approach is applied to the AMS. The process of update and review of documentation has been supported by a technical writing resource. External (corporate) experts have been providing documentation review and internal audit service. The asset management process is also supported by the following departments: → → → →
Finance department (3 staff) QESH department (5 staff) IT department (4 staff) Commercial Manager (1 staff).
The signicant portion of asset management work is outsourced. There are 42 contracted parties delivering work at DT, 3 at MTCC and 46 at JLT (asset management-related). Training matrices have been developed and are maintained by the HR department to indicate the level of training required for each individual position. The effectiveness of the training and further training needs are identied as part of the overall performance (employee and company) evaluation process. The AM training needs have been reviewed and re-identied at the ISO 55001 implementation planning stage (as part of the implementation project programme). A high level review of adequacy of resources is carried out at the AM review meetings, taking into account the overall effectiveness of the AMS, the level of performance, results of internal audits, etc. 8) Existing AM IT support tools These are: → → → →
Maximo – asset and maintenance management software (MMS) SIMS (Stores, Inventory Management System) Orion Network Performance Monitor Virtual Cabinet – electronic documentation control system.
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9) AMS maturity journey Under the previous contract (2006-2014, operation of Dublin Tunnel only), ERTO adjusted its AMS to the requirements of PAS55. Currently (after 2015), ERTO is in the process of implementation of ISO 55001:2014. The AMS objectives have been developed in line with the overall business strategy of ERTO. The applicability of AMS objectives will be reviewed at annual asset management review meetings. ERTO describe the planning and communication strategy in the Strategic Asset Management Plan. The means of communication and sources of input in terms of stakeholders’ requirements and expectations have been identied separately for each key AMS stakeholder: →
→
→
→
The requirements and expectations oflistthe (asset owner) have been documented in the contractual service catalogue (a comprehensive of Client all contractual requirements linked to corresponding plan or procedure describing how this requirement is met), and in the list of contractual Key Performance Indicators. The requirements and expectations of tunnel and road network users are identied through external communication (enquiries and complaints), and annual customer satisfaction surveys. The requirements and expectations of Emergency Services are identied primarily through regular emergency response exercises and communication following signicant events. The requirements and expectations of ERTO internal stakeholders are identied through regular interdepartmental meetings.
A number of communication channels have been utilised to ensure adequate level of staff awareness. These have been described in the company’s Communication Plan and include: → → → → → → →
Internal training (level of training adjusted to the level of involvement in the AMS) External training (for the staff directly involved in the implementation/maintenance of the AMS) Update of staff induction to include introduction to ISO 55001 Posters and electronic notice board messages Internal workshops Internal memos and communication Inter-departmental meetings.
The subcontractors have received individual notications about the AMS (via e-mail). Information about the AMS is also included in subcontractors’ inductions. The level of awareness of both staff and subcontractors is subsequently veried through internal audits. The roles and responsibilities for the implementation and support of asset management have been dened within the Strategic Asset Management Plan and in a dedicated document – ERTO Descriptions of Functions. The completeness of information is monitored monthly under specic KPIs. ROAD TO CERTIFICATION 10) Timetable and plans to full AMS implementation The certication has been planned for 2016 (Stage 1 audit scheduled for September 2016, Stage 2 audit scheduled for November 2016). 11) Targets and change management The scope of ERTO’s AMS includes physical assets only. However, information as an asset is controlled under a separate management ie ISO 27001of Information Security, which has been and implementing in parallel to ISO system, 55001. This ‘overlap’ systems and controls has ERTO been recognised reected in ERTO’s AMS documentation. ERTO regularly audit its asset management system and has dened and implemented an annual audit schedule for all 3 project areas. The AM processes are audited at least once a year within each project area. ERTO has implemented a Corrective Action procedure and Preventive Action procedure, supported by a Continual Improvement procedure. As ERTO is at the beginning of its AM journey, it cannot really conrm the effectiveness of the continual improvement process with regards to AM.
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However, based on the principles adopted for the other management systems, the primary sources of improvements are: → → → → → → → → →
→
→
→
→
Feedback from the Client Feedback from road and tunnel users Results of internal audits Supplier (subcontractor) audits Third party audits Analysis of trends in the level of performance (measured with KPIs) Incidents ERTO recognises several levels/types of change to be controlled: Engineering changes, both planned and emergency, temporary or permanent – these are controlled under a specic ERTO Change Control Procedure (change request submitted on a dedicated form; reviewed, evaluated in terms of risk and approved by Change Control Committee) Business management changes – these are reviewed at regular progress review meetings, and, at a high level, at the annual management review meeting. The review includes evaluation of impact on the AMS; Changes in applicable legislation, regulatory requirements and standards – these are controlled under a dedicated legislation compliance procedure; Changes in AMS risk – these are controlled under a dedicated AMS Risk Identication and Management procedure; Changes to the AMS Strategy and Objectives – if there are any; these are reviewed at annual review meetings with the Client.
12) Certication for entire AMS, or just for some sub-processes? For the entire AMS. LESSONS LEARNED 13) Quick wins The key, high-level benets for ERTO result from a clearer denition and improved organisation of asset management processes. This in turn enables ERTO to implement the requirements of the contract in a more structured, cost-effective, timely and safe manner. The risk-based approach adopted under the ISO 55001 helps to prioritise decisions. 14) Big challenges/barriers The main challenge has been to ensure that ERTO’s AMS conforms both to the requirements of the ISO 55001 standard, and the requirements of the contract agreement. The contract initially required implementation of PAS55, rather than ISO 55001, and the transition to the ISO standard required full analysis, formal approval by the client and processing of contractual amendments. The obvious challenge has been the ownership of assets and the AM roles and responsibilities already dened under the contract (asset owner [the Client] vs asset manager [ERTO]). Taking this into account, it has been difcult for ERTO to design the AMS in such a way that the system addresses the requirements of the standard, reects the key AM principles and remains in line with the contract. Having a set and tight contractual timeframe for implementation of the system has also been challenging, and has required a strict regime for planning, decision-making and decision execution. The level of necessary implementation expertise had to be efciently increased (intensive training). 15) Risks critical success factors The criticaland success factors cannot be fully determined as ERTO is still in the implementation phase, and the system is yet to be externally veried for compliance and effectiveness. Regarding risks and opportunity management, the AM risks identied by ERTO fall into the following categories: → → →
→
Strategic risks: risks that are created by ERTO’s business strategy and strategic objectives Operational risks: risks that occur due to day to day operations Asset risks: risks that are associated with the effective and efcient delivery of operational asset management objectives and the asset’s lifecycle Programme risks: risks that arise due to changes in strategic plans and procedures.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
→
Project risks: risks associated with the implementation of new projects and programmes.
The majority of risks identied by ERTO can be classied as physical and environmental. Risk priority has been dened on 4 levels: → → → →
High risk – immediate action required Medium risk – action to be applied within next month Low risk – action to be reviewed annually Very low – action to be reviewed annually
Risks that are deemed by ERTO not to have an adequate control measure in place are given an ‘Open’ status. Such risks are prioritised and given most attention in order to close them out, and implement mitigation measures. Currently, the ERTO risk register contains 135 no. of risks within 13 system/asset group categories. BENEFITS TO ORGANISATION 16) Structuring the strategy ERTO’s criteria for asset management decision-making include (among others): →
→ → → → → → → → →
Client and stakeholder requirements – primarily dened within the contract (contractual compliance matrix) Obsolescence Enhanced maintenance requirements, above what would normally be expected or experienced End of life and premature failure Changes in legislative requirements and international standards Changes to maintenance and operational requirements Lifecycle value realisation AMS Policy Risk management data Results of AM internal and external audits.
The data and information required to support asset management have been identied in the ISO implementation planning phase. 17) Design for maintenance No available information. 18) Whole lifecycle approach Due to the contract duration being less than some system life span, optimising full lifecycle costs is difcult. ERTO propose to maintain the asset for as long as reasonably practical and then when reliability/safety deteriorates to a level that affects the service of the system we propose cap ex works.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
. SUPPLEMENTARY INFORMATION OBTAINED FROM DURHAM COUNTY COUNCIL UK IN JULY →
→
→
→
→
→
→
→
Durham County Council (DCC) is responsible for 3778km of road, 486 road bridges and 82,144 street lighting columns. DCC has a role as asset owner, asset manager and also runs an in-house asset operational department with some 250 staff. It describes itself as running a ‘mixed public/private sector economy’ and around 50% ofmaintenance work is sub-contracted out to the private sector. When a decision was taken to adopt the ISO 55000 standard in early 2015, DCC was already working to an informal asset management system and had prepared a draft Transport Asset Management Plan (TAMP). Information Systems were seen as key, and DCC had a mature road management system based on UKPMS. At that time, the authority was already accredited to BS ISO 9001, BS ISO 14001 and BS ISO 18001, and it was seen as a logical extension to seek BS 1000 1 (Collaborative Business Relationships) and BS ISO 55001 (Asset Management). A business case was drawn up; as the AMS was already working, the marginal extra costs of ISO 55001 were seen as mainly the fees of employing outside audit and accreditation services, and staff time in documenting processes and case studies. The ongoing extra audit costs are expected to be marginal, given that the work will be combined with the other existing ISO audits. A dry run audit in July 2015 was used to establish the gap analysis of requirements to be fullled in order to achieve level 3 competence. At a nal audit in January 2016 DCC successfully met the requirements and were certied to ISO 55001. The benets of accreditation were immediately apparent: → DCC achieved a ranking in the top two out of 119 Highway Authorities in the government’s efciency rating questionnaire. This is hoped will improve the likelihood of enhanced central government support and funding in future. → DCC report that staff engagement in asset management has greatly improved. → Political support through the Council Portfolio Holder has also improved and funding secured and enhanced based on more rational lifecycle modelling criteria.
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
APPENDIX COST BENEFIT ANALYSIS DESIGN OF COST BENEFIT ANALYSIS One of the principal objectives of the CEDR ARISE study was to attempt to identify both the likely costs and benets of implementing an asset management system – ISO 55001 compliant systems in particular – based onthose the experience organisations that had been through the process, in order to inform consideringofsuch an implementation. The design of the Cost Benet Analysis (CBA) was directed and constrained by the fact that the data would only be obtained from the consultation exercise for WP1, with the expectation that no more than 10 case studies would be completed from a range of organisations. This informed: → The potential quantity of data to be obtained → The reasonableness of granularity/detail of data to be requested → The likely availability of quantied/monetised information → The likely variability in the range of responses → How representative the responses would be of the overall highway authority community Consideration was also given to the likely availability of information on costs and benets, as well as how it could be analysed and presented. From this assessment two key principles were established: →
→
The request data should with the structure of ISO 55000 analysis andfor integration withalign the other work packages in the studyin order to facilitate The data requested should be capable of being quantied/monetised
The structure of ISO 55000 is presented in Appendix 3. Evaluation of each of the elements in the context of ISO 55001 indicated that ‘Support’ (element 7) is the principal heading under which costs would be incurred and/or benets accrued in contributing to activities under the remaining elements. Potential sources of cost and/or benet that could most readily be quantied/monetised were then considered and rationalised as follows: → Time → Expenditure → Risk exposure/mitigation Thus, costs were dened to include time, expenditure or increased risk, while benets included savings in time or expenditure or mitigation of risk. As the likely availability of quantied information was considered to be low, and also to facilitate assimilation of data between organisations of different scales, the magnitude of costs and benets were requested on a simple, ranked scale: 0 = None 1 = Low 2 = Medium 3 = High
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
In order to achieve a manageable scale of data request, both for completion by respondees to the information gathering and subsequent analysis, the CBA data schedule was limited to the principal element headings of ISO 55000 which, with further rationalisation and interpretation, resulted in the framework presented in Table A2.1. In order to capture the wider benets and associated costs, beyond the immediate scope of ISO 55000, of implementing an asset management system, the following general questions were also included: 1. What are/were your baseline costs for managing your assets prior to implementing your asset management system? 2. What is the overall estimated cost of implementing your asset management system? 3. What are overall savings are you expecting to achieve from implementing your asset management system? 4. What is your expected payback period?
RESULTS OF COST BENEFIT ANALYSIS Only four organisations provided information for the cost benet analysis. The results of the analysis of the responses in terms of: 1. Costs 2. Benets 3. Benet-Cost Ratio are presented in Tables A2.2 to A2.4. Tables A2.2 and A2.3 show, respectively, the relative costs and benets to the organisation of implementing the various asset management elements that constitute ISO 55001, based on the aggregated scores from the three participating organisations. The scores reect the organisations’ subjective assessment of the comparative cost and benet associated with each element. Table A 2.4 shows the combined costs and benets of implementing the various elements of ISO 55001 to indicate which elements are likely to provide the greatest return on an organisation’s investment of time, effort or resources compared to unity.
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
L A T O T
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
COSTS The results show that implementing the following asset management elements are likely to incur the greatest relative cost 9: → Planning (35/60), eg implement the asset management system, dene asset management objectives, produce individual asset plans to meet those objectives. → Operation (34/60), eg establishing and implementing operational planning and control processes, and change management processes, integrating outsourced services into overall asset management system. →
Context (32/60), eg aligning asset management with organisational objectives, dening stakeholder needs and objectives, dening and planning the asset management system, producing the strategic asset management plan (SAMP).
Meanwhile, the following asset management elements are likely to incur a relatively low cost: → Improvement (27/60), eg establishing processes for investigating and correcting nonconformities, and initiating preventative actions and improvements. → Performance Evaluation (21/60), eg establishing performance management processes, undertaking audits and reviews. → Leadership (13/60), eg ensuring Senior Management commitment, produce asset management policies, dene and establish roles and responsibilities. The costs associated with implementing these asset management elements arise primarily from the following: → Resources (39/72), eg staff time, additional resources. →
→
Information (37/72), eg development of information management systems and collection and management of associated data. Competence (34/72), eg training management and provision of training.
The following Support activities are likely to require the lowest relative investment: → Awareness/Communications (26/72), eg internal and external communication to raise and embed awareness of policy and practices. → Documentation (26/72), eg production of documentation, establishment of document management procedures and systems.
9
The numbers in parenthesis show the aggregated cost out of the maximum possible value.
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;s e ss e c ro p t n e m e g a n a m e g n a h c t n e m e l p m i d n a g in h isl b a ts E
d n a s e itv c e j b o l a n ito sa i n a rg o th i w t n e m e g a n a m t e ss a n g li A
t;x te n o c
t x e t n o )4 C (
;s n o it a ct e p x e d n a s d e e n r e d l o h e k ta s to d n o sp re d n a d n tsa r e d n U
; m e t s y s t n e m e g a n a m t e s s a e fth o e p o c s e h t e n e D
e c u d o r p , m e syt s t n e m e g a n a m t e ss a f o n o i ta n e m le p m i e h t n la P
. P M A S
p o T e r u s n e d n a p i h rs e d a le t n e m e g a n a m t e ss a e d iv o r P
t; n e itm m m o c t n e m e g a n a M
y; icl o P t n e m e g a n a tM e ss A d n a e c u d o r P
d n a s e tili i b i s n o p s re , s e l rlo a n o ti a is n a g r o h s li b ta s e d n a e n e D
ip h s r e d a ) e 5 L (
.t n e m e g a n a tm e ss a r o f s e tii r o th u a
t n e m e g a n a m t e ss a e h t t n e m e l p m i to s n o tci a e g a n a m d n a fyit n e Id
g in n n a l )6 P (
99
. s e tiv c e j b o e s o th t e e m o t s e p ty t e s a r o ts e s s a c i c e p s
l ro t n o c d n a g in n n a l p l a n io t ra e p o t n e m e l p m i d n a g in h isl b a ts E
;s se s e c o r p
n o ti a r e p ) O (8
t se s a ll ra e v o in th i w d e t a r g e t in e r a s ce iv r se d e cr u o ts u o e r u s n E
. m e sty s t n e m e g a n a m
,t n e m e r u s a e m , g irn ito n o m r fo s e ss e c ro p t n e m le p im d n a p lo e v e D
; ce n a m r o rf e p f o n tio a u l a v e d n a si s ly a n a
e c n a m r fo r e P
n io t a u l a v )9 E (
; ist d u la a n r e t in e k a rt e d n U
s. w ie v re t n e m e g a n a m l ve e lh ig h e k a rt e d n U
s iie t rm fo n o c n o n g n ti a g tsi e v n i r fo ss e c o r p t n e m e l p m i d n a h isl b ta s E
;s n i tco a e itv c e r r co g in t n e m e l p im d n a
t n e m e v o r ) p 0 Im 1 (
;s n o tic a vte i ta n e v e r p g tin a tii n i r fo ss e c o r p t n e m e l p m i d n a h isl b a ts E
ss e ss a ,y fti n e d i lyl a u in t n o c to ss e c o r p t n e m e l p m i d n a h isl b ta s E
L A T O T
s.t n e m e vp ro im t n e m e l p im d n a
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
BENEFITS Table A2.3 shows the relative benet of the various elements that constitute ISO 55000 based on the consolidated results from the three participating organisations. Benets are dened as savings in time and expenditure and/or reductions in risk exposure using the same comparative scale as for costs. The results show that implementing the following asset management elements are likely to provide the greatest relative benet to the organisation10: → Planning (49/60), eg implementing the asset management system, and producing asset management plans for individual assets → Context (46/60), eg effective alignment of asset management system with organisational objectives, dening and planning implementation of the asset management system, developing a strategic asset management plan (SAMP). → Operation (40/60), eg establishing and implementing operational planning and control processes, and change management processes, integrating outsourced services into overall asset management system → Leadership (37/60), eg ensuring Senior Management commitment, developing asset management policies, establishing effective organisational structure including roles and responsibilities. Meanwhile, the following asset management elements are likely to provide the lower relative benets: → Improvement (35/60), eg establishing processes for investigating and correcting nonconformities, and initiating preventative actions and improvements. →
Performance Evaluation (31/60), eg establishing performance management processes, undertaking audits and reviews.
The greatest benets associated with the implementation of these elements of the asset management system are: → Resources (54/72), eg increased maintenance budgets, availability of additional resources. However, benets are likely to be derived across all remaining Support activities: → Documentation (50/72), eg more fully documented information, better document control and management. → Competence (47/72), eg enhanced skills and knowledge, more competent staff. → Information (45/72), eg better information management supporting better informed decision-making. → Awareness/Communication (42/72), eg greater awareness of asset management policy, improved consistency and conformity.
10
The numbers in parenthesis show the aggregated benet score out of the maximum possible value value
100
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
L A T O T
n o ti ta n e m u c o D n tio a m r fo n I
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101
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t n e m e v o r ) p 0 Im 1 (
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L A T O T
s.t n e m e vp ro im t n e m e l p im d n a
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
BENEFIT COST RATIO Table A2.4 considers the combined costs and benets of implementing the various elements of an asset management system to indicate which elements are likely to provide the greatest return on an organisation’s investment of time, effort or resources. Given that the gures are based on relative rankings provided by a small sample of 11 organisations, the relative importance – represented by the shading and values in the table – is considered to be more meaningful than the absolute Benet:Cost Ratio (BCR). The results show that the implementation of each element of ISO 55000 is likely to provide a positive return on investment, with the Leadership element providing by far the greatest (+11). Leadership includes: → The provision of asset management leadership and ensuring Senior Management commitment to asset management → Producing an Asset Management Policy → Dening and implementing an effective asset management organisational structure including roles and responsibilities. Within this element, Resources (+3), Competence (+3) and Awareness/Communication (+3) make the greatest contribution, underlining the value of investing in appropriate resources, providing appropriate training and ensuring awareness through effective communication. Operation, eg establishing and operating asset management processes and procedures, provides the lowest return of the six elements (+3). However, within this element, only Awareness/Communication has a relative BCR less than one; the lowest result and only value less than one. Considering individual Support activities, Competence and Documentation provide the greatest return on investment (both +8), ahead of Resources and Awareness/ Communication (both +7). The responses from the four participating organisations to the general questions are given in table A2.5.
11
The numbers in the table show the relative value of the benet:cost ratio to unity
102
A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
Table A2.5: General costs and benets of implementing an asset management system Respondent
Question 1
2
3
4
What are/were your baseline costs for managing your assets prior to implementing your asset management system?
Not assessed/ calculated
We were already Unknown working in an asset management system organisation and had rather well dened asset management processes and procedures. So the introduction of PAS55 was related to nd scopes for further improvement.
circa £800m pa
What is the overall estimated cost of implementing your asset management system?
These costs were not collected
There was not a big smash hit change for us. The introduction of asset management was smoothening that happened through a long term evolution (not a top management decision for a revolution). So we started making changes during late 1990's to processes and procedures that did not work and around 2005 had we become an asset management organisation.
Circa £1m pa (ie 10 staff)
circa £2m pa since 2011 (ie £10m
What are overall savings are you expecting to achieve from implementing
Not considered. The driver was providing an improved asset management system to
This has never been measured and can also be very difcult to measure since there where during this evolution period
Circa 20% efciency saving in capital maintenance costs (ie
circa £84m pa
your asset management system?
meet client requirements
also numerousprograms other improvement running.
£30m £40m)–
What is your expected payback period?
Not calculated
Not applicable
103
Start-up costs paid back in < 1 year
< 1 year after full implementation
IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
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IMPLEMENTATION GUIDE FOR AN ISO 55001 ASSET MANAGEMENT SYSTEM
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
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r o f ch a ro p p A e h T ;s e itv c je b o M A
t sse a f o t n e m p lo ve e d e th r fo kr o w e m a rf a s e d vi o r P e l o R e h T d n sa n a l P M A g in p o l ve e d
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t n e e ’t ry m e h t h e g v a rt ig i n l s o f e a p o d m p t d su ie n n e ss to ‘l sa a yc sh n e il li o it vi o b r ct P a ts a e t e e p ff n o e e a m d M a n n e g n A a io ’s g n t n in a a io tn M is ta e t n si m e e l ss a g r n a p A o rg m e o i n h a t e d f th n g o a in g c tx h i g n u e t u n d n o r e r o o P c th D
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110
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
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A PRACTICAL APPROACH FOR THE ROADS SECTOR IN EUROPE
NOTES
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OCTOBER 2016