British Standard Asset Management Part 1 PAS 551v3
Content
PAS 55-1
Asset management
Part 1: Specification for the optimized management of physical infrastructure assets
WARNING: THIS IS A DRAFT AND MUST NOT BE REGARDED OR USED AS A BRITISH STANDARD
This draft is issued to allow comments from interested parties. No copying is allowed, in any form, without written permission from BSI except as permitted under the Copyright, Designs and Patent Act 1988 or for circulation within a participating organization for briefing purposes. Electronic circulation is limited to dissemination by email within such an organization.
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Acknowledgement
The development of this Asset Management Publicly Available Specification (PAS) has been led by the Institute of Asset Management (IAM), with the assistance of the following co-operating organizations and individuals: Sponsors and Review Panel AWG plc FaberMaunsell Ltd Lloyd’s Register LogicaCMG London Power Networks plc National Grid Transco plc Northumbrian Water plc Network Rail Severn Trent Water plc The Woodhouse Partnership Ltd Yorkshire Electricity Group In addition to the above, representatives of the following organizations were also part of the review panel and steering committee for the development of this PAS: CIPFA (The Chartered Institute of Public Finance and Accountancy) DfT (Department for Transport) Halliburton KBR Health & Safety Executive Interbrew London Underground Ltd Ministry of Defence (Defence Logistics Organisation) Ofgem (The Office of Gas and Electricity Markets) OFWAT (The Office of Water Services) ORR (Office of the Rail Regulator) UK National Air Traffic Services Ltd Co-ordinating and Drafting Group and their responsibilities John Woodhouse David Ford Martin Cottam Moss Mustafa Project chairman Project secretary and contractual matters Technical issues Producing draft and subsequent revisions
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Contents
Page Acknowledgement Foreword 0 Introduction 0.1 What is asset management? 0.2 Compatibility with other standards 1 Scope 2 Normative references 3 Terms and definitions 4 Asset management system elements 4.1 General requirements 4.2 Asset management policy and strategy 4.3 Asset management information, risk assesment and planning 4.4 Implementation and operation 4.5 Checking and corrective action 4.6 Management review and continual improvement Bibliography Figure 1 — Scope and vital business context of this PAS in relation to the other critical categories of assets Figure 2 — The relationship between the asset management system, the organizational strategic plan and stakeholders Figure 3 — Asset management system elements 2 4 5 5 7 10 10 10 13 13 13 15 18 21 23 24 7 9 13
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Foreword
This Asset Management Publicly Available Specification (PAS) has been developed in response to demand from industry for a standard for carrying out asset management. It is applicable to any organisation where physical assets are a key or critical factor in achieving its business objectives and in achieving effective service delivery. As a response to this level of interest, the decision to develop a formal reference document for asset management as a PAS, rather than a traditional BS or ISO standard, was taken in order to meet this demand at the earliest opportunity. To ensure consistency with other related business system standards and to facilitate its alignment or integration, it was considered that asset management would be best standardised as a specification, with the information on implementing asset management being distilled into key requirements. The criterion for including such requirements has been that, without them, the asset management system would be regarded as deficient. This PAS has been based on the familiar BS ISO format comparable with widely adopted standards such as ISO 14001 and OHSAS 18001. This approach helps to facilitate the conversion of this PAS into a BS or an ISO if there were a market requirement to do so. A further benefit of this approach is that it enables organizations to more readily assess their asset management systems, in a similar manner to assessments using existing BS ISO management systems e.g. ISO 14001. This PAS is published in two parts: - Part 1: Specification for the optimized management of physical infrastructure assets; - Part 2: Guidelines for the application of PAS 55-1. Consultation This PAS has been developed in consultation with a large number of major organizations and individuals that are active and proficient in the field of asset management (see acknowledgement). It has also been made widely available for general public comment.
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0 Introduction 0.1 What is asset management?
Asset Management is simply the optimum way of managing assets to achieve a desired and sustainable outcome. The practice is surprisingly modern and it has roots in many disciplines, practices, industries and countries. Much of its value stems from the universal and unifying principles on which it is founded and this has enabled it to be increasingly applied across a wide range of industries and organizations covering assets as diverse as financial portfolios, digital data, public utility networks and oil production/processing. As the application of asset management has evolved, its focus and usage has varied considerably, not only between different industries, but also between organisations within the same industry. The development of this PAS is a reflection on the level of maturity that asset management is reaching in some sectors where the need for common specifications and standards is recognised. With a subject that has such a wide application, it is necessary to set out the scope and context in which any standard for asset management is intended to apply. This PAS is specifically intended to cover: the management of physical infrastructure assets (hereinafter referred to as asset(s) see 3.1), and in particular the assets that form the main element of our built environment such as utility networks, power stations, railway systems, oil and gas installations, manufacturing and process plant, buildings, airports, etc. asset management from an organizational perspective. It is intended to apply in cases where an organization is primarily dependent on the function of its assets in the delivery of services or products, and where the success of an organization is significantly influenced by the stewardship of the assets. In such cases, a formal approach to asset management will contribute directly to the business capability and performance of the organization. The objective of asset management in this context is to ensure (and to be able to demonstrate) that the assets deliver the required function and level of performance in terms of service or production (output), in a sustainable manner, at an optimum whole-life cost without compromising health, safety, environmental performance, or the organization’s reputation. For the purposes of this PAS, asset management is defined as: “systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving its organizational strategic plan” (see 3.2), and organizational strategic plan is defined as:
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PAS 55-1 “the overall long-term action plan for the organization that is derived from and embodies its vision, mission, values, business policies, objectives and the management of its risks” (see 3.13). The principle benefits of asset management, in no particular order, are: enhanced customer satisfaction from improved performance and control of product or service delivery to the required standards; improved health, safety and environmental performance; optimized return on investment and/or growth through efficient stewardship of assets; the ability to demonstrate best value for money within a constrained funding regime; evidence, in the form of controlled and systematic processes, to demonstrate legal, regulatory and statutory compliance; improved risk management and corporate governance, and a clear audit trail for the appropriateness of decisions and risks taken; improved corporate image, the benefits of which may include enhanced shareholder value, improved marketability of product/service, greater staff satisfaction and more efficient and effective procurement from the supply chain; the ability to demonstrate that sustainability is actively considered as part of asset utilisation and selection. The management of the “physical assets” is only one of the five broad categories of assets that have to be managed collectively in order to achieve the organizational strategic plan. These other categories are: human assets, information assets, intangible (reputation etc) assets and financial assets. The scope of this PAS has been limited to "physical infrastructure assets". Nonetheless, the management of these assets is inextricably linked to these other categories of assets; however within this PAS they are only considered where they have a direct impact on the optimized management of the “physical assets”. The scope of this PAS in relation to the other critical categories of assets is illustrated in Figure 1. Figure 2 provides an illustration of the relationship between the asset management system, the organizational strategic plan and stakeholders. Figure 3 illustrates the asset management system elements specified in this PAS. It should be noted that although aspects of human factors such as leadership, motivation and culture are outside the scope of this PAS, they are critical to the successful achievement of asset management and require due consideration. This is applicable to the organization’s managers, employees, contractors and suppliers.
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Important interface: motivation, communication, roles & responsibilities, knowledge, experience, skills, competence, leadership, teamwork
Human Assets
Total Business
Vital context: business objectives, policies, regulation, performance requirements, risk mgmt.
Financial Assets
Important interface: life cycle costs, capital investment criteria, operating costs
Physical Assets
Information Assets
Important interface: condition, performance, activities, costs & opportunities
Intangible Assets
Important interface: reputation, image, morale, constraints, social impact
Figure 1 — Scope and vital business context of this PAS in relation to the other critical categories of assets This PAS is applicable to any physical asset intensive business, such as is found in the energy, transport, manufacturing and utilities industries, where the greatest expenditure, effort, dependency and risks are associated with the physical assets. It is applicable to any organization that has, or intends to manage or invest in, a significant portfolio of assets where the management of the assets is key to the effective delivery of service, product or other business objectives. It is also applicable to organizations where there is a business or public accountability requirement to demonstrate best value in the safe management of assets e.g. education and health services.
0.2 Compatibility with other standards
The structure of this PAS has been aligned to that of ISO 14001:1996 and OHSAS 18001:1999 and has taken due consideration of the provisions of ISO 9001:2000 in order to enhance the compatibility between these documents and this PAS for the benefit of the user community. This PAS is based on the Plan-Do-Check-Act (PDCA) methodology which is also fundamental to the process approach promoted in ISO 9001:2000. The two methodologies are considered to be compatible.
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PAS 55-1 The model adopted in the PAS is of a coherent and interconnected set of activities and procedures which collectively constitute the PDCA cycle with continual improvement being an integral part of that cycle. The requirements can be met by adopting a procedure based approach as used in the text. Note that procedures may or may not be documented. Many procedures can be simply written as descriptions of processes and, taken together with other elements of the system, such as defined responsibilities and authorities, trained and competent personnel, etc. provide the control required to meet the needs of the organization. It is also important to note that the requirements of this PAS are prescriptive only to the extent that they define what has to be done. The PAS does not define how they are to be done. That is for the organization to determine according to their assessed needs. The requirements of this PAS can also be met by organizations adopting a process approach. ISO 9001:2000 promotes the concept of a quality management system consisting of activities which may be managed most effectively when organized as interacting processes. This specification would enable an organisation to align or integrate its asset management system with related management systems.
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Legal and stakeholder requirements and expectations
(customers, shareholders, regulators, employees, suppliers, society etc)
Other requirements & systems
Asset Management System
Organizational strategic plan
Continual improvement
Optimized AM strategy, objectives, performance targets & plans Asset systems or business units
Asset types, processes, procedures & standards
Monitoring performance (processes & assets) and asset condition
Figure 2 — The relationship between the asset management system, the organizational strategic plan and stakeholders
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1 Scope This part of PAS 55 specifies the requirements for an asset management system for physical infrastructure assets including components thereof e.g. generators, pumps, rolling stock, any software code that is critical to the delivery of the function of the asset. The management of physical infrastructure assets is inextricably linked to the management of all other aspects of a business. These other aspects are only considered where they have a direct impact on the management of physical infrastructure assets. PAS 55 is not applicable to the management of other assets e.g. reputation, knowledge, finance. This PAS is applicable to all sizes of business, from small to medium enterprises through to multinationals and to any organization that wishes to: a) implement, maintain and improve an asset management system; b) assure itself of its conformance with its stated asset management policy and strategy; c) demonstrate such conformance to others; d) seek certification/registration of its asset management system by an external organization; e) make a self-determination and self-declaration of conformance with this asset management PAS. 2 Normative references There are no normative references at present. 3 Terms and definitions For the purposes of this PAS, the following terms and definitions apply. 3.1 asset(s) plant, machinery, property, buildings, vehicles and other items and related systems that have a distinct and quantifiable business function or service
NOTE 1 This definition reflects the scope of this PAS. NOTE 2 This definition includes any software code that is critical to the delivery of the function of the asset.
3.2 asset management systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving its organizational strategic plan
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PAS 55-1 3.3 asset management objective specific outcome or achievement required of assets, asset types and/or asset system(s) in order to achieve the asset management strategy
NOTE It is essential that such outcomes are linked either directly or indirectly to providing the products or services delivered by the total business to its customers or end users.
3.4 asset management policy overall intentions and direction of an organization, related to the assets and the framework for the control of asset related processes and activities, that are derived from and consistent with the organizational strategic plan 3.5 asset management strategy overall long-term action plan for the assets, asset types and/or asset system(s) that is derived from and consistent with the asset management policy and organizational strategic plan 3.6 asset performance/condition target specific level of performance or condition required of the assets, asset types and/or asset system(s) in order to achieve the asset management objective 3.7 asset system set of assets that interact and/or are interrelated so as to deliver a required business function or service 3.8 critical assets assets (or sub set components thereof) that are identified as being critical (now or in the future) to achieving the asset management policy, strategy and objective
NOTE The assets can be safety-critical, environment-critical and/or performance-critical, and can relate to legal, regulatory and/or statutory requirements.
3.9 information data in context 3.10 infrastructure system of core assets, facilities and/or equipment 3.11 life cycle time interval that commences with the identification of the need for an asset and terminates with the decommissioning of the asset or any liabilities thereafter
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PAS 55-1 3.12 optimize achieve by a quantitative, or qualitative method as appropriate, the best value compromise between conflicting factors such as performance, costs and retained risk within any non-negotiable constraints
Note: “within constraints” does not absolve the organization from meeting all of the requirements of this specification e.g. insufficient resources to achieve an asset management requirement (stipulated in PAS 55-1) would not be considered to be a valid constraint.
3.13 organizational strategic plan overall long-term action plan for the organization that is derived from and embodies its vision, mission, values, business policies, objectives and the management of its risks
NOTE Some organizations call this a Corporate Plan, Corporate Strategic Plan, Business Plan, etc.
3.14 stakeholder person or group having an interest in the organization’s performance, success or the impact of its activities
NOTE 1 Examples include customers, shareholders, financiers, regulators, statutory bodies, employees, contractors, suppliers, unions, or society. NOTE 2 A group can comprise an organization, a part thereof, or more than one organization.
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4 Asset management system elements
g& cki n Che action ctive 4.5 corre
Figure 3 — Asset management system elements 4.1 General requirements The organization shall establish, document, implement and maintain an asset management system and shall continually improve its effectiveness in accordance with the requirements set out in the whole of clause 4. The organization shall define the scope of its asset management system. Where an organization chooses to outsource any process that affects conformity with these requirements, the organization shall ensure control over such processes. Control of such outsourced processes shall be identified within the asset management system. 4.2 Asset management policy and strategy 4.2.1 Asset management policy The organization’s top management shall authorize an overall asset management policy. PAS 55-1 v3 13 of 25 © BSI August 2003
M t en em ag ew an evi R 4.6
& Pol St icy ra 4. teg 2 y
Asset Management System
AM In asse fo, risk ssm & pl ent a 4.3 nning
Implementation & operation 4.4
PAS 55-1 The policy shall: a) be derived from and be consistent with the organizational strategic plan; b) provide the framework which, together with the organizational strategic plan, enables specific asset management objectives, targets and plans to be produced; c) be consistent with the organization’s overall risk management framework; d) be appropriate to the nature and scale of the organization’s assets and operations; e) clearly state the overall/broad asset management objectives; f) clearly state that asset management shall be directed to achieve the organizational strategic plan; g) include a commitment to continual improvement of the asset management process; h) include a commitment to comply with current applicable legislation, regulatory and statutory requirements and with other requirements to which the organization subscribes; i) be visibly endorsed by top management; j) be documented, implemented and maintained; k) be communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual asset management-related obligations; l) be available to stakeholders where appropriate; m) be reviewed periodically to ensure that it remains relevant and consistent with the organizational strategic plan.
Note: There may also be functional asset management policies for the key asset management related tasks to provide guidance to managers and a clear framework in which decisions can be made e.g. policy for capital investment.
4.2.2 Asset management strategy The organization shall establish and maintain a long-term asset management strategy. The strategy shall: a) be derived from and be consistent with the asset management policy and the organizational strategic plan; b) identify and clearly state the function(s) and performance requirements of its assets, asset types or asset systems as appropriate. These function(s) and
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PAS 55-1 performance requirements shall include the consideration of the provision of service(s) and/or products to its customers. It shall also identify and consider the requirements of all other relevant stakeholders including health, safety, sustainability and environmental performance requirements; c) take account of the risk assessment (see 4.3.2) and shall identify those assets or asset systems that are critical; d) be optimized; e) provide sufficient information and direction including an action plan with defined timescales and responsibilities to enable effective asset management objectives, targets and plans to be produced; f) consider the lifecycle of the assets, asset types or asset systems; g) be reviewed periodically to ensure that it remains effective and consistent with the asset management policy and organizational strategic plan. Where necessary the strategy shall be amended accordingly. 4.3 Asset management information, risk assessment and planning 4.3.1 Asset management information system The organization shall establish and maintain an asset management information system(s). The system(s) shall be designed and maintained to provide adequate support and information to the organization in meeting all of the requirements set out in clause 4 of this specification. It shall include provision to support the development and implementation/achievement of the asset management policy, strategy, risk assessment and control, objectives, targets, plans. It shall also support all of the requirements related to implementation and operation (see 4.4), checking and corrective actions (see 4.5) and the management review (see 4.6). The information shall be accessible to all relevant employees and other relevant third parties including contractors as appropriate. Where separate asset management information systems exist, the organization shall ensure that the information provided by these systems is consistent. 4.3.2 Risk identification, assessment and control The organization shall establish and maintain procedures for the ongoing identification of asset or asset management related hazards, failures and potential losses, the assessment of their risks and the identification and implementation of necessary control measures. Risk identification, assessment and control methods shall be appropriate to the level of risk under consideration.
The risk assessments shall consider the probability of an event and all of its consequences and shall include: a) physical failure risks, such as functional failure, accidental, malicious damage or terrorist action;
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PAS 55-1 b) operational risks, including the control of the asset, human factors and all other activities which affect its performance, condition or safety; c) natural environmental events (storm, floods, etc.); d) factors outside of the organisation’s control, such as failures in externally supplied materials and services; e) stakeholder risks, such as failure to meet regulatory performance requirements or reputation damage; f) asset related design, specification, procurement, construction, installation and de-commissioning risks as appropriate. The organization shall ensure that the results of these assessments, and the effects of these controls, are considered and where appropriate provide input into: 1) the asset management strategy; 2) asset management objectives and targets; 3) asset management plans; 4) the determination of requirements for the design, specification, procurement, inspection, monitoring, maintenance, refurbishment and replacement of assets; 5) identification of adequate resources including staffing levels; 6) identification of training needs and skills (see 4.4.2); 7) development of operational controls (see 4.4.6); 8) the organization’s overall risk management framework; The organization shall document and keep this information up to date. The organization’s methodology for hazard identification and risk assessment shall: i) be defined with respect to its scope, nature and timing to ensure it is proactive rather than reactive; ii) include, where appropriate, the assessment of how risks change or may change over time and usage; iii) provide for the classification of risks and identification of those that are to be avoided, eliminated or controlled by asset management objectives, targets and plans (see 4.3.4 , 4.3.5 and 4.3.6); iv) be consistent with the organization’s operating experience and the capabilities of risk control measures employed; v) provide for the monitoring of required actions to ensure both the effectiveness and the timeliness of their implementation (see 4.5.1). 4.3.3 Legal, regulatory, statutory and other asset management requirements The organization shall establish and maintain a procedure for identifying and accessing the legal, regulatory, statutory and other asset management requirements that are applicable to it.
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PAS 55-1 The organization shall keep this information up-to-date. It shall communicate relevant information on legal and other requirements to its employees and other relevant third parties including contractors. 4.3.4 Asset management objectives The organization shall establish and maintain documented asset management objectives at each relevant function and level within the organization. The objectives shall be derived from and be consistent with the asset management strategy. When establishing and reviewing its objectives, an organization shall consider its: a) legal, regulatory, statutory and other requirements; b) asset related risks; c) technological and other options; d) financial, operational and business requirements; e) the views of appropriate stakeholders. The objectives shall: 1) be consistent with the organization’s commitment to continual improvement; 2) be quantified (where practicable); 3) be communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual obligations; 4) be reviewed periodically to ensure that they remain relevant and consistent with the asset management strategy. Where necessary the objectives shall be amended accordingly. 4.3.5 Asset performance/condition targets The organization shall establish and maintain documented performance and/or condition targets appropriate to the needs of the organization. The targets shall be derived from and be consistent with the asset management objectives. These targets shall be: a) optimized to an appropriate level of detail; b) specific, measurable, achievable, relevant and time-based (where practicable); c) communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual obligations; d) be reviewed periodically to ensure that they remain relevant and consistent with the asset management objectives. Where necessary the targets shall be amended accordingly.
NOTE Performance targets can be set for individual assets, asset types and/or asset system(s).
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PAS 55-1 4.3.6 Asset management plans The organization shall establish and maintain asset management plans for achieving its asset management strategy, objectives and targets including design, capital works, maintenance, decommissioning, availability of spares and work delivery plans. The plans shall be optimized and then prioritized, and the organization shall provide for the effective and efficient delivery of these plans. This shall include documentation of: a) the designated responsibility and authority for achievement of objectives and targets at relevant functions and levels of the organization; b) the means and time-scale by which objectives are to be achieved. The asset management plans shall be reviewed periodically to ensure that they remain effective and consistent with the asset management strategy, objectives and targets. Where necessary the plans shall be amended accordingly.
NOTE Asset management plans can be for individual assets, asset types and/or asset system(s).
4.4 Implementation and operation 4.4.1 Structure, authority and responsibilities for asset management The organization shall establish and maintain an organizational structure of roles, responsibilities and authorities, consistent with the achievement of its asset management policy, strategy, objectives, targets and plans. These roles responsibilities and authorities shall be defined, documented and communicated to the individuals.
NOTE There is no need to establish a separate organizational structure provided the organization’s existing structure is consistent with achieving the requirements set out in clause 4.
Top management shall provide evidence of its commitment to the development and implementation of the asset management system (processes) and continually improving its effectiveness by: a) appointing a member of top management who, irrespective of other responsibilities, shall be responsible for the overall design, maintenance, documentation and improvement of the organization’s asset management system (processes); b) appointing a member(s) of management whose responsibility is to ensure that the assets or group of assets forming an asset system or business unit deliver the asset management policy, strategy, objectives and targets, and who has/have been given the necessary authority to achieve this; c) identifying and monitoring the requirements and expectations of all of the organization’s stakeholders and taking appropriate and timely action, to the extent that these have implications for the organizations management of its assets; d) ensuring that the asset management policy and strategy are consistent with the organizational strategic plan; PAS 55-1 v3 18 of 25 © BSI August 2003
PAS 55-1 e) ensuring the availability of adequate resources; f) considering the adverse impact that the asset management policy, strategy, objectives, targets, plans, etc. may have on other aspects of the organization. Conversely, considering whether other aspects of the organization may have an adverse affect on asset management; g) communicating to the organization the importance of meeting its asset management requirements in order to achieve its organizational strategic plan; h) ensuring asset related risks are evaluated and included in organizational risk assessments and risk registers as appropriate; i) ensuring the viability of the asset management strategy, objectives, targets and plans. 4.4.2 Training awareness and competence The organization shall ensure that personnel responsible for physical infrastructure assets are appropriately qualified in terms of education, training and/or experience. The organisation shall establish and maintain procedures to ensure that its employees or any relevant third parties including contractors working at each relevant function and level are aware of: a) the importance of conformance to the asset management policy and procedures, and to the requirements of the asset management system; b) their roles and responsibilities in achieving conformance to the asset management policy and procedures and to the requirements of the asset management system (processes), including emergency preparedness and response requirements; c) the potential consequences of departing from specified operating procedures. The organization shall consider its long-term training requirements and plan for them accordingly. 4.4.3 Communication The organization shall have procedures for ensuring that pertinent asset management information is communicated to and from employees and other relevant stakeholders. 4.4.4 Documentation The organization shall establish and maintain information, in a suitable medium such as paper or electronic form, that: a) describes the core elements of the management system (processes) and their interaction; b) provides direction to related documentation.
NOTE It is important that documentation is kept to the minimum required for effectiveness and efficiency.
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4.4.5 Document and data control The organization shall establish and maintain procedures for controlling all documents, data and information required by clause 4 of this specification to ensure that: a) these documents, data and information can be located; b) these documents, data and information are periodically reviewed, revised as necessary, and approved for adequacy by authorised personnel; c) current versions of relevant documents, data and information are available at all locations where operations essential to the effective functioning of the asset management system are performed; d) obsolete documents, data and information are promptly removed from all points of issue and points of use, or otherwise assured against unintended use; e) archival documents, data and information retained for legal or knowledge preservation purposes or both, are suitably identified; f) these documents, data and information are secure and where in electronic form are adequately backed up. 4.4.6 Operational control The organization shall identify those operations and activities that are necessary for achieving: a) its asset management policy; b) its asset management strategy; c) the control of identified risks d) legal, regulatory, statutory and other asset management requirements; e) its asset management objectives; f) its performance targets; g) the delivery of its asset management plans; h) the required function(s) and performance from its assets or asset systems. The organization shall plan and control these operations and activities in order to ensure that they are carried out under specified conditions. It shall establish and maintain documented procedures to cover situations where the absence of these procedures could lead to deviations from achieving the above. These shall also include controls for the design, purchasing, construction, commissioning, operating, refurbishment,
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PAS 55-1 modifications and disposal of assets as appropriate. It shall also ensure that the equipment and tools essential for achieving the required function(s) and performance from its assets or asset systems are maintained and calibrated. Where existing arrangements are revised, or new arrangements introduced, which could impact on asset management operations and activities, the organization shall consider the associated risks before their implementation. The new or revised arrangements to be considered shall include: 1) revised organisational structure, roles or responsibilities; 2) revised asset management policy, strategy, objectives, performance targets or plans; 3) revised processes and procedures; 4) introduction of new assets or technology; 5) introduction of new contractors, suppliers or personnel where appropriate. 4.4.7 Emergency preparedness and response The organization shall establish and maintain appropriate plans and procedures to identify the potential for, and responses to, incidents and emergency situations, and for preventing and mitigating the likely consequences that can be associated with them. The plans and procedures shall include information on the provision and maintenance of any identified equipment, facilities or services that can be required during incidents or emergency situations (e.g. emergency pumps, generators, temporary shelters, access to back-up information). The organisation shall periodically review the effectiveness of its emergency preparedness and response plans and procedures, in particular after the occurrence of incidents or emergency situations. The organisation shall periodically test these procedures where practicable. 4.5 Checking and corrective action 4.5.1 Performance measurement and monitoring The organization shall establish and maintain procedures to monitor and measure the performance of the asset management system (processes). It shall also establish and maintain procedures to monitor and measure the performance of the assets and/or asset systems (hardware) as appropriate. The organization shall consider the associated risks, including potential deterioration mechanisms and their consequences, when setting the frequency for monitoring and the key performance parameters for measuring. These procedures shall provide for: a) both qualitative and quantitative measures, appropriate to the needs of the organization;
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PAS 55-1 b) monitoring of the extent to which the organization’s asset management policy, strategy, objectives and targets are met; c) proactive measures of performance that monitor compliance with the asset management plans, operational criteria and applicable legislation, regulatory and statutory requirements; d) reactive measures of performance to monitor asset-related failures, incidents, non-conformances (including near misses) and other historical evidence of deficient asset management system (processes) performance; e) recording of data and results of monitoring and measurement sufficient to facilitate subsequent corrective and preventative action analysis. If monitoring equipment is required for performance measurement and monitoring, the organisation shall establish and maintain procedures for the calibration and maintenance of such equipment. Records of calibration and maintenance activities and results shall be retained for sufficient time to comply with legislation and the organization's policy. 4.5.2 Asset-related failures, incidents, non-conformances and corrective and preventive action The organization shall establish and maintain procedures for defining responsibility and authority for: a) the handling and investigation of asset-related: 1) failures or failure to meet the required function(s) and performance; 2) incidents and emergency situations; 3) non-conformances; b) taking action to mitigate any consequences arising from such failures, incidents or non-conformances; c) the initiation and completion of corrective and preventive actions; d) confirmation of the effectiveness of corrective and preventive actions taken. These procedures shall require that all proposed corrective and preventive actions are reviewed through the risk assessment process prior to implementation. Any corrective or preventive action taken to eliminate the causes of actual and potential non-conformances shall be appropriate to the magnitude of the problems and commensurate with the asset management related risk encountered. The organization shall implement and record any changes in the documented procedures resulting from corrective and preventive action and shall include the required training where necessary. 4.5.3 Records and record management The organization shall establish and maintain procedures for the identification, maintenance and disposition of asset management records. These records shall include the results of audits and reviews. PAS 55-1 v3 22 of 25 © BSI August 2003
PAS 55-1 Asset management records shall be legible, identifiable and traceable to the activities involved. Asset management records shall be stored and maintained in such a way that they are readily retrievable and protected against damage, deterioration or loss. Their retention times shall be established and recorded. Records shall be maintained, as appropriate to the asset management system (processes) and to the organization or to meet the legislative and regulatory needs, to demonstrate conformance to clause 4 of this specification. 4.5.4 Audit The organization shall establish and maintain an asset management audit programme and shall establish procedures for periodic asset management system (processes) audits to be carried out, in order to: a) determine whether or not the asset management system (processes): 1) conforms to planned arrangements for asset management including the requirements of the whole of clause 4 of this specification; 2) has been properly implemented and maintained; 3) is effective in meeting the organization’s policy and objectives; b) review the results of previous audits and the actions taken to rectify nonconformances; c) provide information on the results of audits to management. The audit programme, including any schedule, shall be based on the results of risk assessments of the organisation’s activities, and the results of previous audits. The audit procedures shall cover the scope, frequency, methodologies and competencies, as well as the responsibilities and requirements for conducting audits and reporting results. Where possible, audits shall be conducted by personnel independent of those having direct responsibility for the activity being examined.
NOTE The word “independent” here does not necessarily mean external to the organization.
4.6 Management review and continual improvement The organization's top management shall, at intervals that it determines, review the asset management system (processes), to ensure its continuing suitability, adequacy and effectiveness. The management review process shall ensure that the necessary information is collected to allow management to carry out this evaluation. This review shall be documented. The management review shall address the possible need for changes to policy, strategy, objectives and other elements of the asset management system, in the light of asset management system audit results, changing circumstances and the commitment to continual improvement. In the context of continual improvement, the organization shall acquire knowledge on new asset management related technology and practices, including new tools and
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Bibliography
[IIMM] International Infrastructure Management Manual, UK edition ISBN No. 0473-09138-0. Printed in New Zealand and Published in the UK. BS EN ISO 14001:1996, Environmental management systems – Specification with guidance for use. ISO Guide 72:2001(E), Guidelines for the justification and development of management systems standards. OHSAS 18001:1999, Occupational Health and Safety Management Systems Specification. BS 3843:1992 Part 1, 2 and 3, Terotechnology. BS 3811:1993, Terms used in Terotechnology. HEALTH AND SAFETY EXECUTIVE, Successful health and safety management: HSG65. ISBN 0 7176 1276 7. 1997. London: The Stationery Office. BS EN ISO 9000:2000, Quality management systems – Fundamentals and vocabulary.
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Asset management
Part 1: Specification for the optimized management of physical infrastructure assets
WARNING: THIS IS A DRAFT AND MUST NOT BE REGARDED OR USED AS A BRITISH STANDARD
This draft is issued to allow comments from interested parties. No copying is allowed, in any form, without written permission from BSI except as permitted under the Copyright, Designs and Patent Act 1988 or for circulation within a participating organization for briefing purposes. Electronic circulation is limited to dissemination by email within such an organization.
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Acknowledgement
The development of this Asset Management Publicly Available Specification (PAS) has been led by the Institute of Asset Management (IAM), with the assistance of the following co-operating organizations and individuals: Sponsors and Review Panel AWG plc FaberMaunsell Ltd Lloyd’s Register LogicaCMG London Power Networks plc National Grid Transco plc Northumbrian Water plc Network Rail Severn Trent Water plc The Woodhouse Partnership Ltd Yorkshire Electricity Group In addition to the above, representatives of the following organizations were also part of the review panel and steering committee for the development of this PAS: CIPFA (The Chartered Institute of Public Finance and Accountancy) DfT (Department for Transport) Halliburton KBR Health & Safety Executive Interbrew London Underground Ltd Ministry of Defence (Defence Logistics Organisation) Ofgem (The Office of Gas and Electricity Markets) OFWAT (The Office of Water Services) ORR (Office of the Rail Regulator) UK National Air Traffic Services Ltd Co-ordinating and Drafting Group and their responsibilities John Woodhouse David Ford Martin Cottam Moss Mustafa Project chairman Project secretary and contractual matters Technical issues Producing draft and subsequent revisions
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Contents
Page Acknowledgement Foreword 0 Introduction 0.1 What is asset management? 0.2 Compatibility with other standards 1 Scope 2 Normative references 3 Terms and definitions 4 Asset management system elements 4.1 General requirements 4.2 Asset management policy and strategy 4.3 Asset management information, risk assesment and planning 4.4 Implementation and operation 4.5 Checking and corrective action 4.6 Management review and continual improvement Bibliography Figure 1 — Scope and vital business context of this PAS in relation to the other critical categories of assets Figure 2 — The relationship between the asset management system, the organizational strategic plan and stakeholders Figure 3 — Asset management system elements 2 4 5 5 7 10 10 10 13 13 13 15 18 21 23 24 7 9 13
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Foreword
This Asset Management Publicly Available Specification (PAS) has been developed in response to demand from industry for a standard for carrying out asset management. It is applicable to any organisation where physical assets are a key or critical factor in achieving its business objectives and in achieving effective service delivery. As a response to this level of interest, the decision to develop a formal reference document for asset management as a PAS, rather than a traditional BS or ISO standard, was taken in order to meet this demand at the earliest opportunity. To ensure consistency with other related business system standards and to facilitate its alignment or integration, it was considered that asset management would be best standardised as a specification, with the information on implementing asset management being distilled into key requirements. The criterion for including such requirements has been that, without them, the asset management system would be regarded as deficient. This PAS has been based on the familiar BS ISO format comparable with widely adopted standards such as ISO 14001 and OHSAS 18001. This approach helps to facilitate the conversion of this PAS into a BS or an ISO if there were a market requirement to do so. A further benefit of this approach is that it enables organizations to more readily assess their asset management systems, in a similar manner to assessments using existing BS ISO management systems e.g. ISO 14001. This PAS is published in two parts: - Part 1: Specification for the optimized management of physical infrastructure assets; - Part 2: Guidelines for the application of PAS 55-1. Consultation This PAS has been developed in consultation with a large number of major organizations and individuals that are active and proficient in the field of asset management (see acknowledgement). It has also been made widely available for general public comment.
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0 Introduction 0.1 What is asset management?
Asset Management is simply the optimum way of managing assets to achieve a desired and sustainable outcome. The practice is surprisingly modern and it has roots in many disciplines, practices, industries and countries. Much of its value stems from the universal and unifying principles on which it is founded and this has enabled it to be increasingly applied across a wide range of industries and organizations covering assets as diverse as financial portfolios, digital data, public utility networks and oil production/processing. As the application of asset management has evolved, its focus and usage has varied considerably, not only between different industries, but also between organisations within the same industry. The development of this PAS is a reflection on the level of maturity that asset management is reaching in some sectors where the need for common specifications and standards is recognised. With a subject that has such a wide application, it is necessary to set out the scope and context in which any standard for asset management is intended to apply. This PAS is specifically intended to cover: the management of physical infrastructure assets (hereinafter referred to as asset(s) see 3.1), and in particular the assets that form the main element of our built environment such as utility networks, power stations, railway systems, oil and gas installations, manufacturing and process plant, buildings, airports, etc. asset management from an organizational perspective. It is intended to apply in cases where an organization is primarily dependent on the function of its assets in the delivery of services or products, and where the success of an organization is significantly influenced by the stewardship of the assets. In such cases, a formal approach to asset management will contribute directly to the business capability and performance of the organization. The objective of asset management in this context is to ensure (and to be able to demonstrate) that the assets deliver the required function and level of performance in terms of service or production (output), in a sustainable manner, at an optimum whole-life cost without compromising health, safety, environmental performance, or the organization’s reputation. For the purposes of this PAS, asset management is defined as: “systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving its organizational strategic plan” (see 3.2), and organizational strategic plan is defined as:
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PAS 55-1 “the overall long-term action plan for the organization that is derived from and embodies its vision, mission, values, business policies, objectives and the management of its risks” (see 3.13). The principle benefits of asset management, in no particular order, are: enhanced customer satisfaction from improved performance and control of product or service delivery to the required standards; improved health, safety and environmental performance; optimized return on investment and/or growth through efficient stewardship of assets; the ability to demonstrate best value for money within a constrained funding regime; evidence, in the form of controlled and systematic processes, to demonstrate legal, regulatory and statutory compliance; improved risk management and corporate governance, and a clear audit trail for the appropriateness of decisions and risks taken; improved corporate image, the benefits of which may include enhanced shareholder value, improved marketability of product/service, greater staff satisfaction and more efficient and effective procurement from the supply chain; the ability to demonstrate that sustainability is actively considered as part of asset utilisation and selection. The management of the “physical assets” is only one of the five broad categories of assets that have to be managed collectively in order to achieve the organizational strategic plan. These other categories are: human assets, information assets, intangible (reputation etc) assets and financial assets. The scope of this PAS has been limited to "physical infrastructure assets". Nonetheless, the management of these assets is inextricably linked to these other categories of assets; however within this PAS they are only considered where they have a direct impact on the optimized management of the “physical assets”. The scope of this PAS in relation to the other critical categories of assets is illustrated in Figure 1. Figure 2 provides an illustration of the relationship between the asset management system, the organizational strategic plan and stakeholders. Figure 3 illustrates the asset management system elements specified in this PAS. It should be noted that although aspects of human factors such as leadership, motivation and culture are outside the scope of this PAS, they are critical to the successful achievement of asset management and require due consideration. This is applicable to the organization’s managers, employees, contractors and suppliers.
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Important interface: motivation, communication, roles & responsibilities, knowledge, experience, skills, competence, leadership, teamwork
Human Assets
Total Business
Vital context: business objectives, policies, regulation, performance requirements, risk mgmt.
Financial Assets
Important interface: life cycle costs, capital investment criteria, operating costs
Physical Assets
Information Assets
Important interface: condition, performance, activities, costs & opportunities
Intangible Assets
Important interface: reputation, image, morale, constraints, social impact
Figure 1 — Scope and vital business context of this PAS in relation to the other critical categories of assets This PAS is applicable to any physical asset intensive business, such as is found in the energy, transport, manufacturing and utilities industries, where the greatest expenditure, effort, dependency and risks are associated with the physical assets. It is applicable to any organization that has, or intends to manage or invest in, a significant portfolio of assets where the management of the assets is key to the effective delivery of service, product or other business objectives. It is also applicable to organizations where there is a business or public accountability requirement to demonstrate best value in the safe management of assets e.g. education and health services.
0.2 Compatibility with other standards
The structure of this PAS has been aligned to that of ISO 14001:1996 and OHSAS 18001:1999 and has taken due consideration of the provisions of ISO 9001:2000 in order to enhance the compatibility between these documents and this PAS for the benefit of the user community. This PAS is based on the Plan-Do-Check-Act (PDCA) methodology which is also fundamental to the process approach promoted in ISO 9001:2000. The two methodologies are considered to be compatible.
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PAS 55-1 The model adopted in the PAS is of a coherent and interconnected set of activities and procedures which collectively constitute the PDCA cycle with continual improvement being an integral part of that cycle. The requirements can be met by adopting a procedure based approach as used in the text. Note that procedures may or may not be documented. Many procedures can be simply written as descriptions of processes and, taken together with other elements of the system, such as defined responsibilities and authorities, trained and competent personnel, etc. provide the control required to meet the needs of the organization. It is also important to note that the requirements of this PAS are prescriptive only to the extent that they define what has to be done. The PAS does not define how they are to be done. That is for the organization to determine according to their assessed needs. The requirements of this PAS can also be met by organizations adopting a process approach. ISO 9001:2000 promotes the concept of a quality management system consisting of activities which may be managed most effectively when organized as interacting processes. This specification would enable an organisation to align or integrate its asset management system with related management systems.
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Legal and stakeholder requirements and expectations
(customers, shareholders, regulators, employees, suppliers, society etc)
Other requirements & systems
Asset Management System
Organizational strategic plan
Continual improvement
Optimized AM strategy, objectives, performance targets & plans Asset systems or business units
Asset types, processes, procedures & standards
Monitoring performance (processes & assets) and asset condition
Figure 2 — The relationship between the asset management system, the organizational strategic plan and stakeholders
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1 Scope This part of PAS 55 specifies the requirements for an asset management system for physical infrastructure assets including components thereof e.g. generators, pumps, rolling stock, any software code that is critical to the delivery of the function of the asset. The management of physical infrastructure assets is inextricably linked to the management of all other aspects of a business. These other aspects are only considered where they have a direct impact on the management of physical infrastructure assets. PAS 55 is not applicable to the management of other assets e.g. reputation, knowledge, finance. This PAS is applicable to all sizes of business, from small to medium enterprises through to multinationals and to any organization that wishes to: a) implement, maintain and improve an asset management system; b) assure itself of its conformance with its stated asset management policy and strategy; c) demonstrate such conformance to others; d) seek certification/registration of its asset management system by an external organization; e) make a self-determination and self-declaration of conformance with this asset management PAS. 2 Normative references There are no normative references at present. 3 Terms and definitions For the purposes of this PAS, the following terms and definitions apply. 3.1 asset(s) plant, machinery, property, buildings, vehicles and other items and related systems that have a distinct and quantifiable business function or service
NOTE 1 This definition reflects the scope of this PAS. NOTE 2 This definition includes any software code that is critical to the delivery of the function of the asset.
3.2 asset management systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving its organizational strategic plan
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PAS 55-1 3.3 asset management objective specific outcome or achievement required of assets, asset types and/or asset system(s) in order to achieve the asset management strategy
NOTE It is essential that such outcomes are linked either directly or indirectly to providing the products or services delivered by the total business to its customers or end users.
3.4 asset management policy overall intentions and direction of an organization, related to the assets and the framework for the control of asset related processes and activities, that are derived from and consistent with the organizational strategic plan 3.5 asset management strategy overall long-term action plan for the assets, asset types and/or asset system(s) that is derived from and consistent with the asset management policy and organizational strategic plan 3.6 asset performance/condition target specific level of performance or condition required of the assets, asset types and/or asset system(s) in order to achieve the asset management objective 3.7 asset system set of assets that interact and/or are interrelated so as to deliver a required business function or service 3.8 critical assets assets (or sub set components thereof) that are identified as being critical (now or in the future) to achieving the asset management policy, strategy and objective
NOTE The assets can be safety-critical, environment-critical and/or performance-critical, and can relate to legal, regulatory and/or statutory requirements.
3.9 information data in context 3.10 infrastructure system of core assets, facilities and/or equipment 3.11 life cycle time interval that commences with the identification of the need for an asset and terminates with the decommissioning of the asset or any liabilities thereafter
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PAS 55-1 3.12 optimize achieve by a quantitative, or qualitative method as appropriate, the best value compromise between conflicting factors such as performance, costs and retained risk within any non-negotiable constraints
Note: “within constraints” does not absolve the organization from meeting all of the requirements of this specification e.g. insufficient resources to achieve an asset management requirement (stipulated in PAS 55-1) would not be considered to be a valid constraint.
3.13 organizational strategic plan overall long-term action plan for the organization that is derived from and embodies its vision, mission, values, business policies, objectives and the management of its risks
NOTE Some organizations call this a Corporate Plan, Corporate Strategic Plan, Business Plan, etc.
3.14 stakeholder person or group having an interest in the organization’s performance, success or the impact of its activities
NOTE 1 Examples include customers, shareholders, financiers, regulators, statutory bodies, employees, contractors, suppliers, unions, or society. NOTE 2 A group can comprise an organization, a part thereof, or more than one organization.
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4 Asset management system elements
g& cki n Che action ctive 4.5 corre
Figure 3 — Asset management system elements 4.1 General requirements The organization shall establish, document, implement and maintain an asset management system and shall continually improve its effectiveness in accordance with the requirements set out in the whole of clause 4. The organization shall define the scope of its asset management system. Where an organization chooses to outsource any process that affects conformity with these requirements, the organization shall ensure control over such processes. Control of such outsourced processes shall be identified within the asset management system. 4.2 Asset management policy and strategy 4.2.1 Asset management policy The organization’s top management shall authorize an overall asset management policy. PAS 55-1 v3 13 of 25 © BSI August 2003
M t en em ag ew an evi R 4.6
& Pol St icy ra 4. teg 2 y
Asset Management System
AM In asse fo, risk ssm & pl ent a 4.3 nning
Implementation & operation 4.4
PAS 55-1 The policy shall: a) be derived from and be consistent with the organizational strategic plan; b) provide the framework which, together with the organizational strategic plan, enables specific asset management objectives, targets and plans to be produced; c) be consistent with the organization’s overall risk management framework; d) be appropriate to the nature and scale of the organization’s assets and operations; e) clearly state the overall/broad asset management objectives; f) clearly state that asset management shall be directed to achieve the organizational strategic plan; g) include a commitment to continual improvement of the asset management process; h) include a commitment to comply with current applicable legislation, regulatory and statutory requirements and with other requirements to which the organization subscribes; i) be visibly endorsed by top management; j) be documented, implemented and maintained; k) be communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual asset management-related obligations; l) be available to stakeholders where appropriate; m) be reviewed periodically to ensure that it remains relevant and consistent with the organizational strategic plan.
Note: There may also be functional asset management policies for the key asset management related tasks to provide guidance to managers and a clear framework in which decisions can be made e.g. policy for capital investment.
4.2.2 Asset management strategy The organization shall establish and maintain a long-term asset management strategy. The strategy shall: a) be derived from and be consistent with the asset management policy and the organizational strategic plan; b) identify and clearly state the function(s) and performance requirements of its assets, asset types or asset systems as appropriate. These function(s) and
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PAS 55-1 performance requirements shall include the consideration of the provision of service(s) and/or products to its customers. It shall also identify and consider the requirements of all other relevant stakeholders including health, safety, sustainability and environmental performance requirements; c) take account of the risk assessment (see 4.3.2) and shall identify those assets or asset systems that are critical; d) be optimized; e) provide sufficient information and direction including an action plan with defined timescales and responsibilities to enable effective asset management objectives, targets and plans to be produced; f) consider the lifecycle of the assets, asset types or asset systems; g) be reviewed periodically to ensure that it remains effective and consistent with the asset management policy and organizational strategic plan. Where necessary the strategy shall be amended accordingly. 4.3 Asset management information, risk assessment and planning 4.3.1 Asset management information system The organization shall establish and maintain an asset management information system(s). The system(s) shall be designed and maintained to provide adequate support and information to the organization in meeting all of the requirements set out in clause 4 of this specification. It shall include provision to support the development and implementation/achievement of the asset management policy, strategy, risk assessment and control, objectives, targets, plans. It shall also support all of the requirements related to implementation and operation (see 4.4), checking and corrective actions (see 4.5) and the management review (see 4.6). The information shall be accessible to all relevant employees and other relevant third parties including contractors as appropriate. Where separate asset management information systems exist, the organization shall ensure that the information provided by these systems is consistent. 4.3.2 Risk identification, assessment and control The organization shall establish and maintain procedures for the ongoing identification of asset or asset management related hazards, failures and potential losses, the assessment of their risks and the identification and implementation of necessary control measures. Risk identification, assessment and control methods shall be appropriate to the level of risk under consideration.
The risk assessments shall consider the probability of an event and all of its consequences and shall include: a) physical failure risks, such as functional failure, accidental, malicious damage or terrorist action;
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PAS 55-1 b) operational risks, including the control of the asset, human factors and all other activities which affect its performance, condition or safety; c) natural environmental events (storm, floods, etc.); d) factors outside of the organisation’s control, such as failures in externally supplied materials and services; e) stakeholder risks, such as failure to meet regulatory performance requirements or reputation damage; f) asset related design, specification, procurement, construction, installation and de-commissioning risks as appropriate. The organization shall ensure that the results of these assessments, and the effects of these controls, are considered and where appropriate provide input into: 1) the asset management strategy; 2) asset management objectives and targets; 3) asset management plans; 4) the determination of requirements for the design, specification, procurement, inspection, monitoring, maintenance, refurbishment and replacement of assets; 5) identification of adequate resources including staffing levels; 6) identification of training needs and skills (see 4.4.2); 7) development of operational controls (see 4.4.6); 8) the organization’s overall risk management framework; The organization shall document and keep this information up to date. The organization’s methodology for hazard identification and risk assessment shall: i) be defined with respect to its scope, nature and timing to ensure it is proactive rather than reactive; ii) include, where appropriate, the assessment of how risks change or may change over time and usage; iii) provide for the classification of risks and identification of those that are to be avoided, eliminated or controlled by asset management objectives, targets and plans (see 4.3.4 , 4.3.5 and 4.3.6); iv) be consistent with the organization’s operating experience and the capabilities of risk control measures employed; v) provide for the monitoring of required actions to ensure both the effectiveness and the timeliness of their implementation (see 4.5.1). 4.3.3 Legal, regulatory, statutory and other asset management requirements The organization shall establish and maintain a procedure for identifying and accessing the legal, regulatory, statutory and other asset management requirements that are applicable to it.
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PAS 55-1 The organization shall keep this information up-to-date. It shall communicate relevant information on legal and other requirements to its employees and other relevant third parties including contractors. 4.3.4 Asset management objectives The organization shall establish and maintain documented asset management objectives at each relevant function and level within the organization. The objectives shall be derived from and be consistent with the asset management strategy. When establishing and reviewing its objectives, an organization shall consider its: a) legal, regulatory, statutory and other requirements; b) asset related risks; c) technological and other options; d) financial, operational and business requirements; e) the views of appropriate stakeholders. The objectives shall: 1) be consistent with the organization’s commitment to continual improvement; 2) be quantified (where practicable); 3) be communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual obligations; 4) be reviewed periodically to ensure that they remain relevant and consistent with the asset management strategy. Where necessary the objectives shall be amended accordingly. 4.3.5 Asset performance/condition targets The organization shall establish and maintain documented performance and/or condition targets appropriate to the needs of the organization. The targets shall be derived from and be consistent with the asset management objectives. These targets shall be: a) optimized to an appropriate level of detail; b) specific, measurable, achievable, relevant and time-based (where practicable); c) communicated to all relevant employees and relevant third parties including contractors with the intent that these persons are made aware of their individual obligations; d) be reviewed periodically to ensure that they remain relevant and consistent with the asset management objectives. Where necessary the targets shall be amended accordingly.
NOTE Performance targets can be set for individual assets, asset types and/or asset system(s).
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PAS 55-1 4.3.6 Asset management plans The organization shall establish and maintain asset management plans for achieving its asset management strategy, objectives and targets including design, capital works, maintenance, decommissioning, availability of spares and work delivery plans. The plans shall be optimized and then prioritized, and the organization shall provide for the effective and efficient delivery of these plans. This shall include documentation of: a) the designated responsibility and authority for achievement of objectives and targets at relevant functions and levels of the organization; b) the means and time-scale by which objectives are to be achieved. The asset management plans shall be reviewed periodically to ensure that they remain effective and consistent with the asset management strategy, objectives and targets. Where necessary the plans shall be amended accordingly.
NOTE Asset management plans can be for individual assets, asset types and/or asset system(s).
4.4 Implementation and operation 4.4.1 Structure, authority and responsibilities for asset management The organization shall establish and maintain an organizational structure of roles, responsibilities and authorities, consistent with the achievement of its asset management policy, strategy, objectives, targets and plans. These roles responsibilities and authorities shall be defined, documented and communicated to the individuals.
NOTE There is no need to establish a separate organizational structure provided the organization’s existing structure is consistent with achieving the requirements set out in clause 4.
Top management shall provide evidence of its commitment to the development and implementation of the asset management system (processes) and continually improving its effectiveness by: a) appointing a member of top management who, irrespective of other responsibilities, shall be responsible for the overall design, maintenance, documentation and improvement of the organization’s asset management system (processes); b) appointing a member(s) of management whose responsibility is to ensure that the assets or group of assets forming an asset system or business unit deliver the asset management policy, strategy, objectives and targets, and who has/have been given the necessary authority to achieve this; c) identifying and monitoring the requirements and expectations of all of the organization’s stakeholders and taking appropriate and timely action, to the extent that these have implications for the organizations management of its assets; d) ensuring that the asset management policy and strategy are consistent with the organizational strategic plan; PAS 55-1 v3 18 of 25 © BSI August 2003
PAS 55-1 e) ensuring the availability of adequate resources; f) considering the adverse impact that the asset management policy, strategy, objectives, targets, plans, etc. may have on other aspects of the organization. Conversely, considering whether other aspects of the organization may have an adverse affect on asset management; g) communicating to the organization the importance of meeting its asset management requirements in order to achieve its organizational strategic plan; h) ensuring asset related risks are evaluated and included in organizational risk assessments and risk registers as appropriate; i) ensuring the viability of the asset management strategy, objectives, targets and plans. 4.4.2 Training awareness and competence The organization shall ensure that personnel responsible for physical infrastructure assets are appropriately qualified in terms of education, training and/or experience. The organisation shall establish and maintain procedures to ensure that its employees or any relevant third parties including contractors working at each relevant function and level are aware of: a) the importance of conformance to the asset management policy and procedures, and to the requirements of the asset management system; b) their roles and responsibilities in achieving conformance to the asset management policy and procedures and to the requirements of the asset management system (processes), including emergency preparedness and response requirements; c) the potential consequences of departing from specified operating procedures. The organization shall consider its long-term training requirements and plan for them accordingly. 4.4.3 Communication The organization shall have procedures for ensuring that pertinent asset management information is communicated to and from employees and other relevant stakeholders. 4.4.4 Documentation The organization shall establish and maintain information, in a suitable medium such as paper or electronic form, that: a) describes the core elements of the management system (processes) and their interaction; b) provides direction to related documentation.
NOTE It is important that documentation is kept to the minimum required for effectiveness and efficiency.
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4.4.5 Document and data control The organization shall establish and maintain procedures for controlling all documents, data and information required by clause 4 of this specification to ensure that: a) these documents, data and information can be located; b) these documents, data and information are periodically reviewed, revised as necessary, and approved for adequacy by authorised personnel; c) current versions of relevant documents, data and information are available at all locations where operations essential to the effective functioning of the asset management system are performed; d) obsolete documents, data and information are promptly removed from all points of issue and points of use, or otherwise assured against unintended use; e) archival documents, data and information retained for legal or knowledge preservation purposes or both, are suitably identified; f) these documents, data and information are secure and where in electronic form are adequately backed up. 4.4.6 Operational control The organization shall identify those operations and activities that are necessary for achieving: a) its asset management policy; b) its asset management strategy; c) the control of identified risks d) legal, regulatory, statutory and other asset management requirements; e) its asset management objectives; f) its performance targets; g) the delivery of its asset management plans; h) the required function(s) and performance from its assets or asset systems. The organization shall plan and control these operations and activities in order to ensure that they are carried out under specified conditions. It shall establish and maintain documented procedures to cover situations where the absence of these procedures could lead to deviations from achieving the above. These shall also include controls for the design, purchasing, construction, commissioning, operating, refurbishment,
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PAS 55-1 modifications and disposal of assets as appropriate. It shall also ensure that the equipment and tools essential for achieving the required function(s) and performance from its assets or asset systems are maintained and calibrated. Where existing arrangements are revised, or new arrangements introduced, which could impact on asset management operations and activities, the organization shall consider the associated risks before their implementation. The new or revised arrangements to be considered shall include: 1) revised organisational structure, roles or responsibilities; 2) revised asset management policy, strategy, objectives, performance targets or plans; 3) revised processes and procedures; 4) introduction of new assets or technology; 5) introduction of new contractors, suppliers or personnel where appropriate. 4.4.7 Emergency preparedness and response The organization shall establish and maintain appropriate plans and procedures to identify the potential for, and responses to, incidents and emergency situations, and for preventing and mitigating the likely consequences that can be associated with them. The plans and procedures shall include information on the provision and maintenance of any identified equipment, facilities or services that can be required during incidents or emergency situations (e.g. emergency pumps, generators, temporary shelters, access to back-up information). The organisation shall periodically review the effectiveness of its emergency preparedness and response plans and procedures, in particular after the occurrence of incidents or emergency situations. The organisation shall periodically test these procedures where practicable. 4.5 Checking and corrective action 4.5.1 Performance measurement and monitoring The organization shall establish and maintain procedures to monitor and measure the performance of the asset management system (processes). It shall also establish and maintain procedures to monitor and measure the performance of the assets and/or asset systems (hardware) as appropriate. The organization shall consider the associated risks, including potential deterioration mechanisms and their consequences, when setting the frequency for monitoring and the key performance parameters for measuring. These procedures shall provide for: a) both qualitative and quantitative measures, appropriate to the needs of the organization;
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PAS 55-1 b) monitoring of the extent to which the organization’s asset management policy, strategy, objectives and targets are met; c) proactive measures of performance that monitor compliance with the asset management plans, operational criteria and applicable legislation, regulatory and statutory requirements; d) reactive measures of performance to monitor asset-related failures, incidents, non-conformances (including near misses) and other historical evidence of deficient asset management system (processes) performance; e) recording of data and results of monitoring and measurement sufficient to facilitate subsequent corrective and preventative action analysis. If monitoring equipment is required for performance measurement and monitoring, the organisation shall establish and maintain procedures for the calibration and maintenance of such equipment. Records of calibration and maintenance activities and results shall be retained for sufficient time to comply with legislation and the organization's policy. 4.5.2 Asset-related failures, incidents, non-conformances and corrective and preventive action The organization shall establish and maintain procedures for defining responsibility and authority for: a) the handling and investigation of asset-related: 1) failures or failure to meet the required function(s) and performance; 2) incidents and emergency situations; 3) non-conformances; b) taking action to mitigate any consequences arising from such failures, incidents or non-conformances; c) the initiation and completion of corrective and preventive actions; d) confirmation of the effectiveness of corrective and preventive actions taken. These procedures shall require that all proposed corrective and preventive actions are reviewed through the risk assessment process prior to implementation. Any corrective or preventive action taken to eliminate the causes of actual and potential non-conformances shall be appropriate to the magnitude of the problems and commensurate with the asset management related risk encountered. The organization shall implement and record any changes in the documented procedures resulting from corrective and preventive action and shall include the required training where necessary. 4.5.3 Records and record management The organization shall establish and maintain procedures for the identification, maintenance and disposition of asset management records. These records shall include the results of audits and reviews. PAS 55-1 v3 22 of 25 © BSI August 2003
PAS 55-1 Asset management records shall be legible, identifiable and traceable to the activities involved. Asset management records shall be stored and maintained in such a way that they are readily retrievable and protected against damage, deterioration or loss. Their retention times shall be established and recorded. Records shall be maintained, as appropriate to the asset management system (processes) and to the organization or to meet the legislative and regulatory needs, to demonstrate conformance to clause 4 of this specification. 4.5.4 Audit The organization shall establish and maintain an asset management audit programme and shall establish procedures for periodic asset management system (processes) audits to be carried out, in order to: a) determine whether or not the asset management system (processes): 1) conforms to planned arrangements for asset management including the requirements of the whole of clause 4 of this specification; 2) has been properly implemented and maintained; 3) is effective in meeting the organization’s policy and objectives; b) review the results of previous audits and the actions taken to rectify nonconformances; c) provide information on the results of audits to management. The audit programme, including any schedule, shall be based on the results of risk assessments of the organisation’s activities, and the results of previous audits. The audit procedures shall cover the scope, frequency, methodologies and competencies, as well as the responsibilities and requirements for conducting audits and reporting results. Where possible, audits shall be conducted by personnel independent of those having direct responsibility for the activity being examined.
NOTE The word “independent” here does not necessarily mean external to the organization.
4.6 Management review and continual improvement The organization's top management shall, at intervals that it determines, review the asset management system (processes), to ensure its continuing suitability, adequacy and effectiveness. The management review process shall ensure that the necessary information is collected to allow management to carry out this evaluation. This review shall be documented. The management review shall address the possible need for changes to policy, strategy, objectives and other elements of the asset management system, in the light of asset management system audit results, changing circumstances and the commitment to continual improvement. In the context of continual improvement, the organization shall acquire knowledge on new asset management related technology and practices, including new tools and
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PAS 55-1 techniques, and these shall be evaluated to establish their potential benefit to the organization.
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Bibliography
[IIMM] International Infrastructure Management Manual, UK edition ISBN No. 0473-09138-0. Printed in New Zealand and Published in the UK. BS EN ISO 14001:1996, Environmental management systems – Specification with guidance for use. ISO Guide 72:2001(E), Guidelines for the justification and development of management systems standards. OHSAS 18001:1999, Occupational Health and Safety Management Systems Specification. BS 3843:1992 Part 1, 2 and 3, Terotechnology. BS 3811:1993, Terms used in Terotechnology. HEALTH AND SAFETY EXECUTIVE, Successful health and safety management: HSG65. ISBN 0 7176 1276 7. 1997. London: The Stationery Office. BS EN ISO 9000:2000, Quality management systems – Fundamentals and vocabulary.
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