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The contemporary landscape of asset management systems


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The primary contributors to asset management literature stem largely from governmental organizations and industry practitioners. Their contribution takes the form of guidelines and reports on best practices, resulting in a variety of asset management frameworks, based on experience or specific personal understanding. Some of these frameworks have been officially formulated into standards such as the PAS 55 in the UK, the International Infrastructure Management Manual (IIMM) in Australia and New Zealand, and more recently the ISO 55000 suite. The purpose of this paper is to present a critical overview of the asset management discipline and the established asset management systems, thus outlining for the first time the contemporary landscape in the field. It is shown that the recent publication of the ISO 55000 suite has fundamentally altered the asset management systems landscape. Specifically, this has profoundly affected the PAS 55 which will not be further reviewed after the publication of ISO 55000, and the IIMM which has already issued a 2015 version and a guideline for adjustment to the new ISO 55000 requirements. Further, it can be estimated that with the introduction of ISO 55000 a new era of professional advancement in the field has emerged, similar to the quality movement in the 1990’s. © 2019, SRAC - Romanian Society for Quality. All rights reserved.
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1. Introduction
Even from the early 2000’s, it has been foreseen that
business is on the verge of a "next wave" of asset productivity
improvement, one that will go farther and be more difficult to
achieve than past initiatives (Schuman and Brent, 2005). The
drivers of this next wave were identified by the Boston
Consulting Group as being the exhaustion of traditional cost-
cutting, the downside of rapid growth, and the fundamental
changes in industry structure (Nicol and Amouyal, 1999).
This transformation process is undoubtedly linked with major
challenges for operating and production organizations, of which
the most fundamental is the two-fold necessity, primarily to
increase revenues, operational effectiveness and customer
satisfaction, while simultaneously reducing capital, operating
and support costs (Mitchell, 2002). In that context, the effective
management of physical assets plays an increasingly important
role for the optimization of business performance, especially for
the case of asset-intensive infrastructure sectors like water, gas,
electricity, oil or transportation.
All organizations have been managing assets for decades in
order to provide products and deliver services, but senior
managers were always in noticeable shortage of well-esta-
blished theories and methods to evaluate if this is being done
efficiently and effectively (Hodkiewicz, 2015). Critical questions
consequently emerged such as: "Do we have the right assets?",
"Are the assets delivering what we need now or in the future?",
"What are the costs of asset operation and the costs of failure?",
"How can new technology and new stakeholders’ expectations
affect our asset practices?", "What is the level of risk considering
our critical assets?". This seems like a spate of different ques-
tions, but one can distinguish a core theme among them: the
best possible way of designing and implementing asset activities
inside the organization.
This is where the contemporary asset management disci-
pline is called to provide answers, by ensuring that physical
assets are used optimally and decision-making concerning assets
are aligned with the organizational needs. Asset management is
associated with applying technical and financial judgment as
well as sound management practices to deciding what assets
are needed to meet business aims, and then to logistically sus-
taining the assets over their whole life, up to disposal – in
essence a life-cycle approach. In more abstract terms, the aim
of the discipline is to enable an organization to realize value
from its assets as it pursues its organizational objectives while
balancing financial, environmental and social costs, levels of
risk, quality of service and asset performance (Hastings, 2010).
A major shortcoming though exists; the term asset mana-
gement has been widely used up to now with fundamental diffe-
rences in interpretation and usage, stemming from numerous
academic and professional sources, like maintenance, project
management, financial markets and information technology, to
mention a few. Accordingly, every technical society, as well as
relative academic and sector groups, has been promoting their
view of understanding on asset management, from their own
perspective (Frolov et al., 2010). This introduces a significant
element of complexity to the study of the scholarship, not to
mention the difficulties that arise when a real asset management
system is going to be implemented, where also considerable
technical and operational competences are needed to be in
Indeed, by the beginning of 2000, all these different views
Access to Success
Vol. 20, No. 169/April 2019
The Contemporary Landscape of Asset Management Systems
1MEng, MSc, DIC, ΜΒΑ, Hellenic Open University, School of Social Sciences, GR-26 335 Patras, Greece;
2Corresponding author, Adjunct Lecturer, University of Piraeus, Department of Business Administration,
GR-185 34 Piraeus, Greece; E-mail:
3Associate Professor, Central Greece University of Applied Sciences, School of Business and Economics,
Location Skliro, 34400 Psachna, Greece; E-mail:
The primary contributors to asset management literature stem largely from governmental organizations and industry
practitioners. Their contribution takes the form of guidelines and reports on best practices, resulting in a variety of
asset management frameworks, based on experience or specific personal understanding. Some of these frameworks
have been officially formulated into standards such as the PAS 55 in the UK, the International Infrastructure
Management Manual (IIMM) in Australia and New Zealand, and more recently the ISO 55000 suite. The purpose of
this paper is to present a critical overview of the asset management discipline and the established asset management
systems, thus outlining for the first time the contemporary landscape in the field. It is shown that the recent publication
of the ISO 55000 suite has fundamentally altered the asset management systems landscape. Specifically, this has
profoundly affected the PAS 55 which will not be further reviewed after the publication of ISO 55000, and the IIMM
which has already issued a 2015 version and a guideline for adjustment to the new ISO 55000 requirements. Further,
it can be estimated that with the introduction of ISO 55000 a new era of professional advancement in the field has
emerged, similar to the quality movement in the 1990’s.
Keywords: asset management systems; ISO 55000; PAS 55; international infrastructure management manual (IIMM).
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had led to a wealth of practices, processes, and ideas around
the subject of asset management, although in a scattered and
narrow-focused manner (Too, 2010). It was only during the last
decade that intensified pressures from stakeholders and
regulators, due to the ensued economic crisis, forced the
organizations to start thinking about asset management under a
value-driven approach, optimizing returns by the effective
allocation and utilization of assets to balance performance and
financial constraints (de Vroedt and Hoving, 2014). In that
sense, asset management is certainly a contemporary and
evolving topic, built on the foundations of previous approaches
and extended through the modern thinking of value-driven and
life-cycle management (Lloyd, 2010).
This thinking has led to the development of several
guidelines, reports and best practice cases in asset
management, which subsequently resulted in efforts to
standardize the subject, including the introduction of the
International Infrastructure Management Manual (IIMM) in 2000
continuously updated since and PAS 55 in 2004 updated in
2008. These documents reflected the pioneering work of
esteemed industry practitioners, academics and relevant
societies in asset management developed countries like
Australia and UK, to promote the subject under commonly
accepted practices. Inevitably, an international consensus was
accomplished, and this was represented by the launch of a set
of three ISO standards for asset management in 2014, under
the ISO 55000 suite, which constitutes a step change for the
asset management community (Hodkiewicz, 2015). For its
preparation, there was a participating sum of 31 countries,
including a significant number of representatives from large
organizations, governments and regulators that had the
opportunity to bring their ideas to the table. All these experts
aspire that the particular standards will make the difference in
asset management guidance for optimality and certification. In
this paper, a critical overview of these asset management
systems is presented, providing an outline of the contemporary
landscape in the field.
This paper is organized as follows. Section 2 illustrates a
timeline of the asset management discipline. Section 3 contains
further considerations on the strategic nature of asset ma-
nagement. An overview of the established asset management
systems (i.e. ISO 55000, PAS 55, and IIMM) is presented in
Section 4. Finally, Section 5 discusses some issues that
emerged from this study.
2. A timeline of the asset management
The management of physical assets suffers from a termi-
nology overload like any other evolving management discipline
(Lloyd, 2010). A confusing range of management systems
variants related to physical assets has been introduced by re-
searchers throughout time. Examples of this diversity are
broadly-known terms like maintenance management, strategic
asset management, engineering asset management, property
asset management, infrastructure asset management, enterprise
asset management and so on. It is therefore apparent that asset
management is relevant to all types of industry and all their
assets involved. In that sense, asset management systems
should correspond to the associated organizational alignment,
culture and business objectives of each specific organization or
On the other hand, all asset management systems have
quite the same final goals (i.e. adding value to the benefit of
stakeholders by coordinating the organization’s asset processes
in an effective way). One of the challenges of managing an
asset, especially a physical one, is that the latter is not sentient
and cannot follow the usual management edicts. Assets do not
respond to economy or politics but do respond to how they are
treated and used. In this context, an asset management system
is not confined merely into a way of "doing things" with assets,
but rather it is an interdisciplinary and "joined-up" process of
treating assets as sources of value (IAM, 2015).
Asset management, apart from been continuously evolving,
is not considered as a new discipline but rather as a recently
emerged one (Wijnia, 2016; Amadi-Echendu et al., 2010). The
first reference to a holistic asset management was traced in the
1970’s under the name of "terotechnology" (White, 1975). This
discipline was developed to promote industrial profitability based
on the sound fundamentals and traditional practices of reliability
and maintainability (Thackara, 1975). Indeed, associated fields
of asset management already existed in that era in the form of
"plant maintenance", which subsequently became "equipment
management" (IBM, 2007). In that sense, early asset manage-
ment approaches comprised only for optimal corrective mainte-
nance techniques, meaning that fixing actions were taken only
when equipment broke. As new technologies emerged in the
1980’s, especially in the field of information and communication
technology, various software systems and predictive mainte-
nance techniques furthered the scope of the asset management
discipline. This allowed organizations to follow a systematized
asset management orientation, simulating core function opera-
tions at hand.
The discipline further evolved in the 1990’s under the
concept of "Enterprise Asset Management". This trend was
enhanced by the dramatic reduction of public revenues due to
low tax rates, and hence the need to reduce costs came
forward, by exploiting all possible synergies inside the organi-
zations. Also, new costs arose due to stricter safety provisions
in industry, in the aftermath of major catastrophes that occurred
in the period. The key drivers were to reduce the corrective time
intervals by means of root-cause failure analysis and the im-
plementation of mature and effective software systems. It was
specifically the Piper Alpha disaster that alarmed society and led
to specific safety preventive goals for the industry, introducing
risk-oriented safety strategies.
From 2000’s onwards, organizations have reached higher
levels of asset management maturity and converged in viewing
asset management under a holistic view. Especially for physical
assets in the infrastructure industry, a thorough definition of
asset management was provided in the beginning of the holistic
approach of the discipline by Mitchell and Carlson (2001) as "the
strategic, integrated set of comprehensive processes (financial,
management, engineering, operating and maintenance)to gain
lifetime effectiveness, utilization and return from physical assets
(production and operating equipment and structures)". Specific
emphasis has been placed on total life-cycles of assets, be-
ginning from the design until the disposal phase, as well as on
asset risk management and the pertaining human and societal
factors of influence. By this process, organizations were able to
exploit benefit opportunities that exceeded the maintenance
phase of the asset’s life-cycle alone. Also, the use of wireless
communications allowed for easier, timely and accurate data
acquisition and provided the capability of management tech-
nology integrated into the assets themselves (IBM, 2007).
Technologies like self-diagnostic automations and radio-
frequency identification (RFID) tags have the capacity to inform
operators in real-time about asset status, breakdowns and
performance metrics.
Based on the principle of value creation through coordinated
efforts, asset management may contribute significantly to the
transformation and advancement of actual job functions and
responsibilities within the organizations. In fact, asset manage-
ment has evolved from a simple maintenance process imprinted
in paper work and treated as a "necessary evil" in the 1970’s, to
the current position where asset management activities are core
functions of organizational strategies. The evolution of asset
management for physical assets and the corporate understan-
ding of the field are depicted in Figure 1.
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Vol. 20, No. 169/April 2019
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Today, asset management represents a fundamentally di-
fferent way of thinking about physical assets and how to use
them to deliver value. Being such a broad discipline, it is no
surprise that several asset management frameworks have been
developed on the basis of particular organizational practices or
specific personal understandings of individual experts. It is
stated in the scholarship that these frameworks, or quasi-
standards, are usually not grounded in theory and verification of
their academic fitness and their practical usefulness is essential
(El-Akruti et al., 2013). According to Frolov et al. (2010), the
collaboration between organizations and academic researchers
is under way to extend the body of knowledge in this area.
Instead of partial approaches, established bodies of knowledge
have tried to provide more mature asset management
frameworks for generic use, through means of standardization,
which are discussed in the following sections.
3. The strategic nature of asset management
As it was stated in the previous section, the concept of asset
management has been widely used in literature, but with fun-
damental differences in interpretation and usage across organi-
zations owning infrastructure assets. Regardless of the context
in which the term is expressed, asset management is about
evaluating performance and making key decisions throughout
an asset’s lifecycle (Sarfi and Tao, 2004). In other words, asset
management is a discipline that enables organizations to
allocate their assets (as resources) more efficiently to provide
higher levels of customer service and reliability, while balancing
financial objectives.
Thus, it is evident that, as a whole, asset management is a
useful strategic tool to promote general business goals of
infrastructure organizations. The strategic involvement of asset
management has been identified very early (see Miles et al.,
1978), showing that new business strategies may fail due to
inadequacy in their asset management activities, systems, and
technology. Later studies, focusing on the interfaces between
business strategies and close-related asset management
disciplines as project management and systems engineering
(Donovan, 2002; Morris and Jamieson, 2004; Srivannaboon and
Milosevic, 2005) resulted that there is usually an inconsistency
between strategic goals and the asset system delivered.
Furthermore, it was shown that when only accounting measures
are considered, based on short-term financial performance and
budgets, then the true long-term (or lifecycle) value of asset
utilization is missed (Kaplan, 1990; El-Akruti and Dwight, 2010).
But, while most of the reported research focus on discrete
asset activities such as construction, maintenance, and finance,
it is rare that the research extends to strategic aspects of the
asset management (El-Akruti et al., 2013). Even though the
usefulness of asset management has been well reviewed, its
holistic scholarship is clearly a contemporary topic (Too, 2010)
and strategic related aspects of asset management have only
emerged recently (Dornan, 2002; Mohseni, 2003, Närman et al.,
2006; Stapelberg, 2006; Haffejee and Brent, 2008).
Today, the advancement of this field, particularly in terms of
the volume of academic and theoretical development, is at best
moderate, despite the relatively increased attention from em-
pirical researchers and practitioners (Too, 2010). Albeit the
acknowledged key role of asset management in strategy
making, the contribution of asset management activities to the
development of an effective business strategy is still not defined
(El-Akruti et al., 2013). A plausible reason may be that re-
searchers are still unaware of, or unimpressed by, the con-
tribution that asset management can offer to the performance of
assets. To this end, Dixon (2017) proposes a useful way to "sell"
the concept of asset management by creating compelling stories
that interpret iconic achievements in asset management terms.
Especially in the infrastructure sector, it is believed that the
lack of advancement is due to the general belief that asset
management is only related to maintenance and its related
services and therefore is considered to be of less strategic
importance (Too, 2010). The focus of infrastructure organiza-
tions remains upon individual assets and their performance in
the short-run rather that examining the long-term needs using a
system-wide asset framework focus (Stapelberg, 2006). All
infrastructure organizations utilize specific frameworks and
guides on their individual assets, usually derived from the asset
manufacturers, but their overall system management is usually
developed empirically by their own practice and focus. Thus,
there are many different perspectives on what "Total Asset
Management" means to every different infrastructure organi-
zation, according to their level of complexity, design and specific
assets involved.
In order for the contribution of asset management to be
effective, key activities, relationships, and mechanisms need to
be mapped, established and managed inside an organization. In
other words, an asset management framework has to be ex-
plored, establishing core asset management processes and
enablers, in a holistic approach towards the success of the
organization’s strategy (Clash and Delaney, 2000). However, up
to today, there has been no research on what different or-
ganizations identify as being core to their successful asset
management (Hodkiewicz, 2015). As such, current literature in
this field tends to lack well-grounded theories (Frolov et al.,
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Vol. 20, No. 169/April 2019
Figure 1. Evolution of asset management and corporate thinking
(Source: IBM, 2007)
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4. Overview of Asset Management Systems
Organizations have been managing physical assets for de-
cades and by today there has been a considerable wealth of
practice, processes, and ideas around the subject of asset
management. Especially for the management of physical
assets, the focus today has been placed on embodying the
principles of life cycle analysis, systematic risk assessment, sus-
tainability, quality and environmental protection (Amadi-Escendu
et al, 2010; Too, 2010). As discussed in the previous sections, a
characteristic element of this discipline is its strategic and
interdisciplinary nature, sharing knowledge across numerous in-
dustrial and professional sectors (power, water, roads, resource,
local government etc.). It was thus unavoidable that significant
complexities arise due to the use of different terms, definitions,
and processes compounded by technical societies, research,
and sector groups, each one promoting their own particular view
of best practice in asset management. But, academics and
consultants who managed to move across the sectors have
seen that in many cases the differences were quite artificial and
there was much to learn from individual sectors towards com-
prehending asset management in a higher-level, strategic
approach (Hodkiewicz, 2015).
The above way of thinking and the need to overcome
complexities led to the development of standards in asset
management. Standardization is an excellent means to galva-
nize community’s best practices and is especially useful in the
infrastructure sector, where most benefits are expected, due to
the large amount and value of assets involved. Based on
previous efforts with standards like PAS 55 and IIMM, the launch
of an international standard for asset management in 2014 (i.e.
the ISO 55000 suite), represents a noticeable step change and
a first-time global consensus for the asset management co-
mmunity. Following, an overview is provided of the three above-
mentioned standards.
4.1. The ISO 55000 suite of standards
The ISO 55000 suite of asset management systems, like all
other international management systems, is by itself a recog-
nized framework of core enablers and practices in the field. The
advantage of this standard is that it is based on global asset
management practical experience and methods that have been
acknowledged and approved by an enlarged committee of inter-
national experts. In fact, the ISO 55000 suite was developed by
ISO Committee PC251 with the participation of 31 countries,
rendering it the most agreed upon global asset management
tool today.
The purpose of this standard is to adapt organizations' asset
management current systems to satisfy the standard's require-
ments. In the process of drafting ISO 55000, common and
successful practices have been identified, applicable to a wide
range of assets, organizations and different cross-cultural
backgrounds (Ma et al., 2014).
ISO 55000 suite is built on a firm foundation of PAS 55 – the
latter primarily referring to physical assets (Camparano and
Masic, 2018). The main difference is that the new standard
applies to any organization or type of asset – tangible or
intangible – as long as the assets are an important key factor in
achieving business goals. ISO 55000 is generic in scope and
does not focus on specific assets, but it is clearly stated that it
can be primarily used for the management of physical assets
(see ISO 55001, clause 1), like its predecessor PAS 55. The ISO
55000 suite is consisted of three standards: ISO 55000 (over-
view, principles, and terminology), ISO 55001 (management
systems – requirements), ISO 55002 (management systems –
guidelines for the application of ISO 55001).
Of the above, ISO 55001 is of most importance since it
specifies the requirements needed for an effective asset
management system. It describes "what" should be present in
the asset management system. ISO 55001 defines require-
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Vol. 20, No. 169/April 2019
Figure 2. The Plan-Do-Check-Act Model and ISO 55001 requirements
(Source: IAM, 2015)
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ments for an asset management system in the same way as ISO
9001 and ISO 14001 specify quality and environmental manage-
ment systems respectively (Ma et al., 2014), exhibiting
increased focus on the needs of stakeholders and on leadership
and commitment. It also specifically focuses on performance
management approaches related to asset management
(Schoenmaker and Lei, 2015). In doing so, ISO 55001 brings
multiple benefits – related to typical ISO standards – such as
consistency of business operations and overall efficiency of
organizations (see Păunescu, 2017).
Furthermore, ISO 55002 provides examples and describes
"how" to apply ISO 55001, but without being exhaustive or
detailed in describing methodologies and practices. ISO 55000
explicitly states that this standard can be used in combination
with any relevant sector or asset-specific standard and technical
guideline, specifically referring to PAS 55, IIMM, ISO 9001, ISO
14000, ISO 37500, and ISO 31000.
The ISO 55000 suite is the first management system
standard to implement the new "ISO Annex SL", which is a
standardized template for terminology and layout (Ma et al.,
2014). This provides a consistent basis for the integration of all
different management systems (such as ISO 9001 and ISO
14001) and enables coordinated monitoring, audit and certifi-
cation (Woodhouse, 2013). Other management system stan-
dards are also being reorganized to align with this new template.
The requirements' structure of ISO 55001 consists of 7 main
clauses and 23 sub-clauses. Figure 2 demonstrates a PDCA
grouping of the ISO 55001 requirements.
The ISO 55000 suite of standards is suitable for organi-
zations that just start to comprehend their asset activities.
Characteristically, in ISO 55002 (sub-clause 4.4) it is stated that
"In the initial development of the asset management system,
the organization should outline how it will establish, implement,
maintain and improve the system. An initial review of the organi-
zation’s current processes against the requirements of ISO
55001 will determine the areas that need to be developed to su-
pport the functioning of a compliant asset management system".
In ISO 55002 (sub-clause 6.2.1) it is also suggested that
existing information should be used as quickly as possible to
develop an interim asset management plan, which can lead to a
better understanding of strengths, weaknesses, and priorities of
current asset management practices.
Therefore, it is acknowledged that when organizations are in
the initial steps of establishing a structured asset management
system, a quick review against the requirements of ISO 55001
is beneficial to identify gaps and priorities for future develop-
ment. Existing information on organizations’ present asset
activities can facilitate the exploration of opportunities, barriers
and feasibilities in establishing an asset management system,
along with promoting integration with other existing organiza-
tional functions (e.g. quality, safety risk and human resources),
which are all accounted for – explicitly or as a reference – in the
requirements of ISO 55001. The ISO 55001 clauses can also be
used as self-assessment benchmarks in contemporary maturity
models, as the one provided by the Institution of Asset
Management, to identify the level of an organizations’ asset
management competence (IAM, 2015).
4.2. The PAS 55 standard
PAS 55 has been an international success since its first
publication in 2004. It has been increasingly recognized as a
generically applicable definition of good practices in the whole
life cycle and optimized management of physical assets. PAS 55
has been revised in 2008 and comprises two parts: PAS55-1
which specifies a checklist of 28 requirements for an effective
asset management system, and PAS55-2 which provides
practical guidance on the implementation of the standard.
PAS 55 has been withdrawn as a formal specification in
2015, after enabling a 1-year overlap with ISO 55000 for
organizations to transfer their certifications to the new
international standard. Nevertheless, all key elements of PAS 55
are retained strongly, although under a different structure, in the
ISO 55000 suite, including principles such as alignment of
objectives, life-cycle costing, risk management, leadership, con-
sultation, communication, competency development and infor-
mation management (BSI, 2014). In Figure 3, a PDCA grouping
of the PAS 55 requirements is provided.
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Vol. 20, No. 169/April 2019
Figure 3. The Plan-Do-Check-Act Model and PAS 55 requirements
(Source: BSI, 2008)
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By reviewing the two standards and by comparing Figures 2
and 3, it is apparent that the cross-mapping of individual re-
quirement clauses cannot be compared on a one-to-one basis
(Woodhouse, 2013; Ma et al., 2014). Further diverging from PAS
55, the ISO 55001 standard is designed to apply for any asset
type, albeit recognizing the particular applicability for the mana-
gement of physical assets. This introduces a generalization of
language and requirements in order to facilitate the implemen-
tation and interpretation of the standard within different asset
management contexts. Other significant changes include the
importance given on asset management policy and strategy to
cover stakeholders’ needs, the reduced steps in risk assess-
ment which is directly referred to the respective ISO 31000 risk
management system and the tightened requirements for audited
and documented information (Woodhouse, 2013).
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Vol. 20, No. 169/April 2019
Figure 4. The asset management process of IIMM
(Source: IPWEA, 2015)
4.3. The IIMM standard
The IIMM standard is now at its fifth edition published in
2015, which has been driven largely by the introduction of the
new ISO 55000 suite of standards (IPWEA, 2015). IIMM is
recognized as one of the leading documents in infrastructure
asset management and its specialty is placed on providing "how
to" practices and methodologies in the area. IIMM can be
utilized as a major supplementary resource in implementing the
ISO 55001 requirements, with the latter describing "what is
needed" (IAM, 2015).
When comparing the IIMM with ISO 55001, it is evident that
they are formulated under two very different structural forms.
ISO 55001 provides a framework starting from general strategic
options and ending to operational elements of asset mana-
gement. Instead, the IIMM is structured as a guide to lead the
user through logical steps of defining requirements, developing
life-time strategies, implementing planning and finally identifying
the asset management enablers as supporting elements to the
management system. IIMM’s structure is depicted in Figure 4.
5. Discussion and conclusions
From the aforementioned analysis, it is apparent that the
recent publication of the ISO 55000 suite has significantly
changed the asset management systems landscape. The pur-
pose of the new ISO standard is to provide a framework of good
practices that can guide all asset management systems and
activities inside an organization in order to advance alignment
between strategic and operational levels towards a value-
maximizing common approach. The central idea behind the term
"value" incorporates an optimization process between perfor-
mance, risks and life-cycle asset costs.
All the basic principles that empower this standard are
already well known and extensively reviewed in the asset mana-
gement scholarship, though under a great number of different
professional perspectives (i.e. engineering asset management,
maintenance, project management, financial management etc.).
The basic difference, and certainly the basic advantage, is the
fact that for the first time, a wide international community has
made a consensus upon the implementation of an asset
management holistic framework. Indeed, the standard provides
an opportunity for organizations to standardize an otherwise
complex process involving numerous asset management
activities, practices and even systems that exist inside them.
The standard itself is generic in nature and applies to any
asset type. Given the vast differences between business orga-
nizations, their interpretations on "success" and the even larger
differences between asset types, it can be reasonably con-
cluded that the standard is mainly addressed to higher
organizational levels, strategic or tactical, where relevant simil-
arities and benchmarking opportunities may be possible. Thus,
the ISO 55000 suite is particularly applicable as a "shell"
framework, providing an overarching system that includes all
relevant management activities and other functional frameworks
that affect assets, as quality, environment, sustainable develop-
ment, and accounting.
The core of the standard is a proposed set of requirements
that describe "what" is needed for a successful asset
management system. No guidelines on "how to" are provided
and technical details for implementation are explicitly referred to
1 6
the relevant specialized documents, (e.g. ISO 31000, ISO 37500,
and ISO 9001), not excluding other more specific asset
practices and regulations that are already in place (e.g. safety,
IT, controlling). The strategic character of the standard is thus
evident, rendering it a suitable tool for good practice in strategic
planning for managing assets.
The latter can be significantly beneficial for organizations
who utilize a great number of physical assets for their opera-
tions. Especially for the infrastructure sector, it is expected that
mainly large organizations, public and private, will seek confor-
mance to the standard as a proof of excellence in their strategic
asset management decision-making approaches, advancing
their professional credentials and justifying their strategic
actions in the eyes of the public opinion and the market
respectively. In that sense, it can be estimated that with the new
standard, a new era of professional advancement in the field
has emerged, similar to the quality and sustainability optimi-
zation in organizations, initiated in the 1990’s.
Moreover, the whole issue of ISO 55000 seems to be fully
consistent with the modern privatization trends in the global
economy. While history will be the ultimate judge, there is strong
evidence that the standard addresses some crucial points in
current business reality. The framework facilitates the practice of
dividing public infrastructure into core units that will retain the
ownership of critical physical assets and other secondary units
whose functions may be outsourced to the private sector through
long-term leasing or contracting. Indeed, there is broad
evidence in international practice on such processes. Then, core
principles of the standard have already become obligatory by
international and state legislation. The European directives
2014/24 and 2014/25 on public procurement have for the first
time introduced a life-cycle asset provision, enforced into the
European member states. The life-cycle concept, besides the
obvious benefits that introduces in rational decision-making, it
can also be considered as a reliable tool to address long-term
costs, refining the details of potential long-term outsourcing ini-
The ISO 55000 suite has already affected the precedent
established asset management systems like the PAS 55, which
will not be further reviewed after the publication of the ISO
standards, and the IIMM which has already issued a 2015
version and a guideline for adjustment to the new ISO require-
ments (IPWEA, 2015). Nevertheless, it is expected that PAS 55
will continue to be used as an expanded guidance tool on the
management of physical assets (Woodhouse, 2014), while IIMM
will carry on being one of the best practical guides in ISO
implementation (IAM, 2015).
Other conceptual models and guidelines for asset mana-
gement, stemming from professional bodies like the Conceptual
Asset Management Model in the UK (IAM, 2015) and the Asset
Management Model in Australia (AMC, 2007), have major diffe-
rences in structure compared to ISO 55000. However, they still
illustrate the key management mechanisms already embodied
in ISO 55000 and, as core-principle frameworks, they will further
facilitate developments in practice and academia, in conjunction
with more detailed structures like the Global Forum for
Maintenance and Asset Management's (GFMAM's) 39 subjects
(Visser and Botha, 2015) or others, proposed by researchers
(e.g. El-Akruti et al., 2013).
These recent developments are bound to draw the attention
of large organizations around the world, and especially those
that incorporate expensive and large volumes of infrastructure
assets for their operation (e.g. electricity and water supply
sectors). The bi-fold pressure on those organizations is that in-
frastructures age with time resulting in increasing costs on
maintenance, while society continuously poses higher demands
for services’ quality, risk minimization, and sustainability.
Therefore, over the coming years, one can reasonably
expect an increasing range of industry sector and asset-type
guidance material to emanate, in order to interpret and apply
ISO 55001 requirements in different circumstances. Also,
significant challenges will potentially emerge in re-examining the
roles of asset owners, asset managers, operators and service
providers along with refining governance and regulatory frame-
works and stakeholders’ confidence (Woodhouse, 2014).
It is necessary to mention though that up-to-now, due to the
very recent publication of the ISO 55000 suite, there is no empi-
rical evidence on the benefits of its implementation (Hodkiewicz,
2015) and thus verification of the framework’s fitness for
particular asset management purposes is still essential. In that
sense, organizations, professionals, and academic researchers
are urgently required to extend the body of knowledge in this
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Vol. 20, No. 169/ April 2019
... What is the risk level considering our critical assets? How can new technologies and stakeholder expectations affect practices related to them? (Hodkiewicz, 2015;Konstantakos et al., 2019) Asset Management (AM) terminology is considered recent (Pais et al., 2019), and asset management is regarded as a new standard that emerged at the beginning of this century (Lafraia, 2020). As scientific research, asset management is relatively new, starting only in the late 1960s and early 1970s, as terotechnology. ...
... With ISO 55001, the AM topic jumped into the spotlight (Meireles, 2018), and its publication set in 2014 profoundly affected PAS 55, which will no longer be revised. It also altered the asset management systems, ushering in a new era of professional advancement, similar to the quality movement in the 1990s (Konstantakos et al., 2019). ISO 55001,unlike PAS 55, was born in line with other management standards, such as 9001 (Quality), 14001 (Environmental), and 31001 (Risk) (Lafraia, 2020). ...
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Effective and efficient organizations use their asset management to resolve competing priorities and ensure that longterm benefits are not sacrificed for immediate needs. Implementing ISO 55001 allows organizations to lead their operations orderly, creating value and improving their results and income. In Brazil, however, the standards are still little known and used by companies. On the ISO website about organizations certified with the 55001, only eight Brazilian companies appear on the list. Regardless that linking asset management to corporate strategy is relatively new, Brazilian companies have not been accumulating achievements with this standard. Therefore, through a survey with experts and open interviews with consultants in the area, this study seeks to answer why asset management standards have little adherence in Brazil. This research suggests that the main reason for the standards' non-accession is that the Brazilian companies have a culture of immediacy. Any process that will generate results in the medium and long term is not always a priority since the daily demands in the short time are very high, taking up all the employees' working time. So, the companies cannot deliver sustainable results.
... The study is also a response to recent calls for the need for a theoretical framework to support the application of strategic AM practices in the built environment that has caused difficulties for practitioners (e.g. Gavrikova et al., 2020;Konstantakos et al., 2019, El-Akruti et al., 2018. It contributes to the AM literature by exploring the distinctly overlapping body of knowledge on established managerial and organisational theories that informs the successful implementation of effective asset management practices often absent in AM research. ...
... Before the 1980s, AM research mainly belonged to the business economics domain (90%), and in the last ten years, engineering and asset-focus discussions made up more than 75% of the literature for specific industries in different countries. Whilst there is a lack of consensus regarding the origins or theoretical basis upon which AM is founded, there is agreement among researchers that the concept evolved from other disciplines such as finance, engineering, information technology, construction, etc. (Konstantakos, 2019 • Value: Assets exist to provide value to the organisation and its stakeholders • Alignment: AM translates the organisational objectives into technical and financial decisions, plans and activities. • Leadership: Leadership and workplace culture are determinants of value realisation. ...
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A built environment can be considered as a complex system with multiple layers and networked organisations, institutions, and users that collectively create value for all parties involved. The rapid transformational advances in technologies, increasing demands from stakeholders, and significant disruptions caused by natural disasters present many challenges for managers responsible for ensuring sustainable capabilities and capacities for their organisations are maintained to optimise value for all stakeholders. In this study, we look at three perspectives that have emerged in response to such challenges in the strategic asset management literature: (i) the dynamic capabilities paradigm, (ii) a holistic systems approach, and (iii) the business model concept. With few exceptions, these multidisciplinary viewpoints have often been treated separately, leading to several limitations for their application in practice. While complex systems are fundamentally deterministic, successful organisations have created complex adaptive systems that exhibit flexibility and resilience in challenging situations. This article will explore the linkages of these perspectives and suggest a business model design that presents effective enablement of different tangible and intangible resources owned or controlled by an organisation and those in the wider networked environment. This enablement will lead to creating and extending the organisation's capability and capacity using its resource base. This article contributes to asset management literature by using established theories to study a distinctly overlapping body of knowledge that applies to asset management in the built environment that is often absent. It is based on a systematic literature review for AM publications between 2014-2021, including a snowballing technique that led to relevant articles prior to the study period. The findings of this study will form part of an ongoing larger research study on optimising value through enhanced asset management capability for the New Zealand built environment.
... Meanwhile, Garramone et al (2020); Li et al (2019) examined asset management from different perspectives, but have yet to define whether progress is similarly shared or collaborated on worldwide. This question is important, as asset management is not a new discipline; the first reference to holistic asset management was recorded in the 1970s under the term ' terotechnology' (Konstantakos et al., 2019). Asset management also allows organisations to create, enhance and or sustain a resource with corporate governance values, ensuring the asset management paradigm shift is much broader than the scope of maintenance (Amadi-Echendu, 2004). ...
... Asset management is not a recent discipline, but it has been reinforced, and it is continuously evolving (Amadi-Echendu et al., 2010;Wijnia, 2016). According to Konstantakos et al. (2019), the first use of the term holistic asset management was recorded in the 1970s under the name of terotechnology. Terotechnology is a combination of the accessibility of the system approach and numerate techniques, applied together to enable the manufacturing engineer to consider situations a step further by overcoming various user issues. ...
... There are currently merely 27 ISO 55001 certified organizations in North and South America, indicating that they meet or exceed the specifications for an AM system as outlined in the standard (ISO 2021). In general, organizations aim at employing the principles and guidelines described within the ISO 55001 standard to improve their AM system operations (Woodhouse 2014;Hodkiewicz 2015;Konstantakos et al. 2019). An efficient AM system must include consistent information flow between the connected subject areas because miscommunication can lead to system dysfunction. ...
An effective infrastructure asset management (AM) system is crucial for utilities, city officers, government agencies, and other asset-owning organizations to facilitate navigating the numerous challenges associated with operating and managing infrastructure assets. In this paper, the AM system itself is represented as a complex network (comprised of nodes and links) that describes the major components necessary for its operation within an organization and the information connections between such components. ISO 55001, a widely accepted international standard, specifies the requirements for an effective AM system and outlines the criticality levels of different system components—reflected in the corresponding network by the link weights. The main challenges facing managing an AM system (i.e., metamanagement) pertain to (1) information asymmetry (i.e., not relying on consistent information for decision making) between AM system components; and (2) information overload (i.e., excessive information undermining decision making) within the AM system components. These challenges cause systemic risks (possibility of dependence-induced disruptions) within the system network due to the connectedness of system components. Systemic risks can be mitigated through built-in network resilience by restructuring the system component connections. Such network reconfiguration presents a complex nonconvex optimization problem with multiple potential solutions depending on the number of new connections to be added to the AM system, the length of those connections, and the target risk mitigation level. Through this metamanagement (managing the management system) lens, a genetic algorithm approach was employed to explore the optimal AM network configurations considering different objective functions. These objective functions were based on different complex network measures including the betweenness-, closeness-, and eigenvector-centrality, as well as the vulnerability index. The devised objective functions were employed to the cases of adding 1 to 15 links only to limit network overconnectedness (i.e., information overload). Considering all objective functions evaluated, adding a small number of links (fewer than five) provided a significant reduction in systemic risk (18% to 49%). Finally, managerial insights are presented to explain how to employ the developed approach to mitigate the systemic risks within an organization’s AM system based on different metrics valuations and stakeholder inputs.
... AM has evolved from Maintenance 1.0 using printed paperwork and considered as a "Necessary Evil" to Maintenance 4.0 corresponding to the present position where AM activities are fundamental functions of SAM [183]. Table 32 depicts the evolution of AM and the understanding of the field by top management. ...
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This article focuses on identifying and analyzing elements of strategic asset management (SAM). It reviews physical asset management (AM) models defined as the coordinated activity of an organization to realize value from assets, along with SAM which focuses on aligning AM strategies with various levels of organizational strategy (corporate, business, and functional-level strategy). The analysis of recent scientific papers devoted to AM with a special emphasis on SAM aspects and decision-making models as well as risk management help provide a starting point for new research directions specifically the influence of risk-informed decision-making (RIDM) process and emerging industry 4.0 technologies, as well as resilience engineering on SAM. For instance, applying Maintenance 4.0 using technological solutions such as industrial internet of things (IIOT), cloud computing, cyber-physical systems (CPS), and big data analytics could decrease the challenges encountered by top management such as managerial, technological, and methodological challenges. The outcomes will contribute to position and validate the link between SAM and RIDM, as well as Maintenance 4.0 and resilience engineering inside the vast discipline of AM and the alignment with various levels of organizational strategy.
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A disciplina contemporânea de gestão de ativos tem se destacado como um campo atuante de interesse nos últimos anos. Por meio dela, coordenam-se as atividades de uma organização para obter valor a partir de seus ativos. No entanto, por ser essencialmente multidisciplinar e complexa, a gestão de ativos ainda tem sido pouco explorada. Ademais, as diretrizes para o alinhamento de processos da organização com a gestão de ativos especificam o que precisa ser feito, mas não como fazê-lo. Em se tratando de ativos físicos, a manutenção representa um estágio do ciclo de vida de grandes impactos para o alcance dos objetivos organizacionais. Evidências mostram que uma manutenção deficiente pode resultar em falhas nos processos que podem colocar as pessoas em risco, acarretar perda de receitas e inviabilizar as operações. Nesse contexto, esta pesquisa visa elaborar uma proposta de estrutura de gerenciamento de manutenção para a gestão de ativos físicos. Para tal, foram realizadas duas revisões integrativas da literatura a fim de embasar as considerações para a modelagem da estrutura proposta. Utilizou-se a abordagem da modelagem de processos seguindo as especificações da linguagem gráfica padronizada BPMN (Business Process Model and Notation). Na sequência, discutiu-se a aplicabilidade da estrutura proposta por meio de um estudo de caso que considerou o contexto operacional real de uma usina hidrelétrica. Logo, a partir dos resultados obtidos, espera-se contribuir com os profissionais e pesquisadores de manutenção na compreensão e na difusão de uma proposta de estrutura de gerenciamento de manutenção que esteja alinhada com as diretrizes internacionais da gestão de ativos. Além disso, essa pesquisa preenche uma lacuna na literatura de manutenção visto que aborda a disciplina de gestão de ativos, assim como a série ISO 55000, em profundidade no contexto do gerenciamento de manutenção.
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The most important challenges and risks in power sector nowadays are aging equipment and complying with requirements related to climate adaptation measures and regulation related to decarbonisation of the electricity and heat sector, including coal-phase out. Power production is one of the largest sources of global greenhouse gas (GHG) emissions. While significant investment in near-to-zero emission and renewable energy resources (RESs) have occurred over the last two decades, fossil fuels still account for over 60% of the global electricity production. As a matter of action, putting a price on CO2 and other GHG emissions can considerably alter the system dispatch over the short-term and generation investment decisions over the long-term. This situation is particularly exigent for developing countries that have limited resources to respond to those challenges. The previous challenges require a holistic approach capable to integrate all relevant influencing factors and constraints in order to support sound decision-making. Structured asset management (AM) approach may provide an adequate framework in this regard. Focus of this paper is on developing countries, where AM could provide an efficient framework to their power utilities in energy transition. The paper proposes and illustrates the application of the AM framework in the general context and challenges within the power sector in Bosnia and Herzegovina (BiH), as a developing country under the Energy Community Treaty. For long-term development scenario and financial projections of the case study considered, certain initial assumptions and setting the goals have been taken into account. They address the following constraints and influence factors: decarbonisation requirements and dynamics of coal phase-out, power demand forecast, impact of internal and regional electricity market, impact of carbon pricing and integration to the European Union Emissions Trading System (EU ETS), investment plan for current and future needs, electricity prices forecast and income from supply (retail) and trade, etc. The paper states that a comprehensive AM framework is beneficial in overcoming numerous identified challenges related to the energy transition and climate change adaptation for developing countries such as demonstrated in the case study of energy transition in BiH. The proposed approach may be adapted for specific contexts of other developing countries that are at early stages of their energy transition.
Asset management has become an active field of research with the consolidation of the international ISO 55000 series. It coordinates activities to realize value from assets in organizations. Maintenance is one of the main stages to deliver business outcomes from physical assets over its life cycle. In the fourth industrial revolution scenario, it could not be different. Establishing activities to address unwanted incidents, nonconformities, and opportunities for improvement is an important and required element in the maintenance management of an asset management system. The standards, however, are not specific and only determine what needs to be done, not how to do it. Accordingly, this paper proposes a framework for maintenance management improvement (MMI) based on the international standard ISO 55000 series for asset management. To this end, a four-step methodology was applied. First, an ISO 55000 series review focused on a broad understanding of the concepts and requirements for the improvements in an asset management system is presented. Then, a framework was developed for MMI and demonstrated through a maintenance case study application in a Brazilian hydroelectric plant. Finally, the framework processes were correlated and discussed with the improvement requirements of ISO 55001. As the main result, an MMI framework for addressing improvements has been demonstrated to maintenance management for asset management. It encompasses activities for elaborating control and corrective actions, dealing with consequences, addressing opportunities for improvement, critically assessing events, and analyzing root causes. It was evidenced the framework is able to address nonconformities, incidents, and opportunities systematically. Therefore, these findings are expected to contribute to the researchers and practitioners in the field of asset management as the proposed framework based on the ISO 55000 series is an approach to the achievement of continuous improvement in maintenance management and, consequently, in asset management.
This study examines the mediating effects of physical/engineering asset management on the relationship between continuous quality improvement and business performance. Using empirical data based on survey data from six European countries (i.e. Greece, Poland, Slovakia, Slovenia, Sweden and Turkey), this study used mediation analysis to address the research problem. A macro for SPSS was used to estimate the size of an indirect effect of continuous quality improvement on business performance by a proposed mediator. The results of this study show that physical asset management mediates the effect of continuous quality improvement on business performance. This study provides valuable insights into mechanisms that have the potential to improve business performance. The results contribute to a better understanding of how companies could achieve higher performance outcomes through the introduction of continuous quality improvement and through physical asset management practices.
This chapter intends to discuss asset management of complex engineering systems with a particular focus on the maintenance stage of their life cycle. The first two sections provide an overview of the asset management discipline through its fundamentals and its interfaces with maintenance management. Then, a maintenance planning framework for asset management of complex engineering systems is presented in the third section. Finally, the main issues related to decision making and improvement in maintenance planning are discussed, as well as available support methods.
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Chinese municipalities have developed a large stock of capital assets during a period of rapid growth and urbanization, but have yet to modernize asset management practices. Cities face challenges such as premature decline of fixed assets and spiking liabilities related to operating and maintaining assets. This paper evaluates the asset management practices in three selected small cities and towns in China, using a benchmarking assessment tool followed by an in-depth field assessment. The paper finds that overall performance is below half the international benchmark for good practice in all three cities. Management practices are considerably more advanced for land than for buildings and infrastructure. Key deficiencies in data availability and reporting, governance, capacity, and financial management indicate increased risks for local government finance and the delivery of public services. For small cities and towns where public revenues are often uncertain and limited, urban public services will be at risk of deterioration unless good asset management practices are put in place. The paper recommends strategic actions for upper and lower levels of government, to advance local asset management practices and facilitate the reform agenda.
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The Global Forum on Maintenance and Asset Management (GFMAM) was formed in 2011 to bring together various experts, practitioners, academics, and other professionals who are active in the field of asset and maintenance management. The primary mission of GFMAM is to develop and promote knowledge, standards, and education for the maintenance and asset management professions. To fulfil this mission, GFMAM developed an ‘Asset Management Landscape’ document, which defines 39 subjects on asset management, grouped into six main subject areas. This paper reports on two surveys that were conducted to determine the importance of the 39 asset management subjects. Respondents were requested to rate the importance of each of the 39 subjects on a five-point scale. Results from the survey indicated that the five most important subjects are ‘asset management strategy and objectives’, ‘asset management policy’, ‘strategic planning’, ‘asset management planning’, and ‘asset management leadership’.
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Good asset management is increasingly viewed as normal practice in mature organisations around the world. This briefing paper explains the current status and developments in standards for asset management. It outlines, in particular, the PAS 55 and ISO 55000 sets of requirement specification and explains the similarities and differences between them. The document also summarises the transition implications for auditing and certification.
Definitions, Concepts and Scope of Engineering Asset Management, the first volume in this new review series, seeks to minimise ambiguities in the subject matter. The ongoing effort to develop guidelines is shaping the future towards the creation of a body of knowledge for the management of engineered physical assets. Increasingly, industry practitioners are looking for strategies and tactics that can be applied to enhance the value-creating capacities of new and installed asset systems. The new knowledge-based economy paradigm provides imperatives to combine various disciplines, knowledge areas and skills for effective engineering asset management. This volume comprises selected papers from the 1st, 2nd, and 3rd World Congresses on Engineering Asset Management, which were convened under the auspices of ISEAM in collaboration with a number of organisations, including CIEAM Australia, Asset Management Council Australia, BINDT UK, and Chinese Academy of Sciences, Beijing University of Chemical Technology, China. Definitions, Concepts and Scope of Engineering Asset Management will be of interest to researchers in engineering, innovation and technology management, as well as to managers, planners and policy-makers in both industry and government.
Standard-based management is a research field that received a lot of attention in the latest years. Implementation of ISO standards of management systems brings multiple benefits to organizations that adopt a standard-based management. Increasing of the consistency of business operations, improvement of customer satisfaction, or increasing in the overall efficiency of an organization are only some of those benefits. The current paper examines the extent to which organizations in Romania and in Central and Eastern Europe value importance of certification to ISO management system standards. For this purpose it analyzes the data collected by the annual ISO survey 2015, for the last six years, to identify evolutions and changes in ISO certifications of organizations in different European countries. The paper results show encouraging perspectives regarding importance given by Romanian organizations to ISO management systems certification. © 2017, SRAC - Societatea Romana Pentru Asigurarea Calitatii. All rights reserved.
The launch of a set of three ISO Standards for Asset Management in 2014 represents a step change for the AM community. One of the Standards, ISO 55001 seeks to be applicable to all asset owners from Art Galleries to the Defence Force and will be used for certification. With over 25 participating countries there is expected to be a large number of organisations, regulators, and governments who look to these Standards for asset management and certification guidance. This paper provides an overview of the ISO 55001 standard, its relationship to the other standards in the set as well as identifying differences to the PAS55 Specification which preceded it. It describes the development process and identifies areas of major debate for the committee over the 3 years. These debates often relate to areas that lack theory and quantifiable evidence and hence represent opportunities for research, these are identified. The paper will be of value to those who are not familiar with the ISO process and wish to understand why the Standards have the content they do and how they will contribute to the future of Asset Management.
Conference Paper
Asset management (AM) discussions frequently come around to how to prepare compelling investment cases to Top Management in a language that they understand. The objective of this paper is to propose a way in which the AM concept itself may be made more compelling to Top Management and Leadership. The paper argues that a macro representation of asset management in a general organizational context may be beneficial approach. The paper refers to high-profile historic examples to illustrate how an AM approach might have influenced outcomes. The paper is the author's personal view and is intended as a discussion of the potential power of asset management. One way to look at AM and ISO55000 is that it describes what we should do in today's constrained and crowded world in order to make progress in a `reasonable' way. The `commissioning organization' may need to achieve revolutionary outcomes, but, through AM, we can take the holistic view of the situation and identify, then treat, the full range of related issues. Informed leadership is critical in this regard. Whilst asset managers can individually and collectively strive to develop the multi-skilled, multi-agency, multi-layered networking culture and approaches that will enable us to prepare compelling investment cases to Top Management (and that will also enable Top Management to respond to them), we must continue to lobby for representation at the most senior levels of organizations. This is because one of the hardest skills is Influencing - there is only so much `pushing' that can be done from below. Asset managers, just like anyone else in business, commerce, government or NGOs, need `pull' from above. A useful way to `sell' the concept and value of asset management to the Leaders of Today (and, perhaps more importantly, the Leaders of Tomorrow) could be to create compelling stories that interpret iconic achievements and events in AM terms. Several examples will illustrate the key learning points, that the `commissioning organization' was strongly motivated and very powerful, and that progress was made but important areas of `reasonableness' appear to have been overlooked. These are areas that an AM Framework could have picked up. In summary, there is huge potential to further develop a series of illustrative studies to highlight the power of the AM approach in a way which should appeal to a general business readership and thus engage existing and developing Leaders across a wide range of enterprises.
This paper is the result of an international, explorative study of the alignment of government and road authority goals from different European countries and Western Australia. The goal of the study is to advance the understanding of the development of performance management of road agencies. Agencies around the world are using performance management to direct transportation investments, support their governments’ priorities, and provide greater accountability to the public. The focus of this study is on the alignment of performance management between government and the road agency. In order to compare the alignment between the different countries a reliability, availability, maintainability, safety, security, health, environment, economics and politics (RAMSSHEEP) categorisation based on systems engineering was used. Special attention was paid to the analysis of a ‘line-of-sight’ and possible criteria to use for the alignment. We find that in most cases the government objectives are not clearly aligned with agency objectives and performance areas of the agency. This limited line-of-sight is a complicating factor in the determining the effectiveness of the performance measures at government level.
The current concept of an asset management (AM) system focuses on the lifecycle of engineered assets and little has been done in the literature on its link to organizational strategy. In this paper, the AM system′s position within an organizational structure and its role in competitive strategy has been explored. Two case studies involving AM have been analyzed using a proposed framework which is comprised of a set of planning and control activities maintaining a control mechanism and a relationship with the strategy-making process. It is argued that the AM system structure and the mechanism play a key role in the organizational strategy. The existence of the AM system is hypothesized by this framework which stipulates the asset performance required for strategic success. The use of this framework allows for conclusions to be drawn on the requirements for building an effective connection between AM activities and strategy development. This connection is achieved through planning and control mechanisms acting on the asset-related activities. On one hand, the effect of inadequate or missing elements of the framework has been shown to result in negative impacts on cost, productivity, quality, business outcomes and ultimately strategy achievement. On the other hand, the existence of elements of this framework has been shown to have positive impacts on strategy achievement.