In 2004, the IAM collaborated with the BSI and, with the assistance of organ- isations and individuals, developed the PAS 55 document (BSI, 2008a). The main aim of PAS 55 was to assist in the life cycle management of assets with a particular focus on assets that form part of the core business. Asset intensive organisations are dependent on well-defined AM guidelines as an organisation’s success is significantly influenced by the performance of its assets.
PAS 55 is divided into two parts, namely: PAS 55-1 and PAS 55-2. The first part, PAS 55-1, provides a set of requirements that define what has to be done, but there is no indication of how it must be done. PAS 55-2, in
turn, provides guidelines for the successful application of PAS 55-1 without adding any additional requirements. The BSI (2008a) also stresses that AM requires an integrated approach and that the PAS 55-2 guidelines cannot be partially implemented, but that a holistic approach is required. Ratnayake (2013) explains that PAS 55 can help to reduce uncertainties involved with asset behaviour, future requirements, performance scores, associated risk and costs.
According to Van den Honert, Schoeman and Vlok (2013), PAS 55 follows the Plan-Do-Check-Act (PDCA) cycle. Qing-Ling, Shu-Min, Lian-Liang and Jun-Mo (2008) report that the PDCA cycle forms the foundation for Total Quality Management (TQM). Consequently, the use of the PDCA cycle in the PASS 55 document aids in quality assurance in the PAM environment.
The steps in the PDCA cycle follow a logical order in which a plan is conceived after identifying and analysing a problem. Once this has been com- pleted, a solution is developed and implemented. This is followed by an evalu- ation of the results achieved and, finally, the results are acted upon (Johnson, 2002). If a new problem is identified in the evaluation, the PDCA cycle is ini- tiated once again. By following these steps, the quality of work is improved in each phase. Note that its cyclical and dynamic nature means that it is a closed loop process which repeats itself after the completion of the last step (Act). Qing-Ling et al. (2008) highlighted that the PDCA cycle could be regarded as a summarised version of continuous and spiral improvement. Table 2.1 shows how PAS 55 links up with the steps in the PDCA cycle.
Table 2.1: PDCA cycle applied to AM.
Step PAS 55 link to PDCA cycle
Plan Establish the AM strategy, objectives and plans necessary to deliver results in accordance with the organisation’s AM policy and the organisational strategic plan.
Do Establish the enablers for implementing AM (e.g. asset informa- tion management system(s)) and other necessary requirements (e.g. legal requirements) and implement the AM plan(s).
Check Monitor and measure results against AM policy, strategy objectives, legal and other requirements; record and report the results.
Act Take actions to ensure that the AM objectives are achieved and to continually improve the AM system and AM performance.
Adapted fromBSI(2008a).
the world is evident as it has been translated into Spanish, French, Chinese, Russian and Portuguese. In 2009, consultation with professional bodies as well as with industry led to the submission of PAS 55 to the International Standards Organisation as the basis of a new ISO standard for AM. The standard was approved and resulted in the creation of the ISO 55000 suite of standards. ISO 55000 was developed over three years with the help of 31 participating countries and was published in January 2014. Van den Honert et al.(2013) and Woodhouse (2014) explain that ISO 55000 is made up of three parts, namely:
• ISO 55000 Asset management – Overview, principles and terminology • ISO 55001 Asset management – Management systems - Requirements • ISO 55002 Asset management – Management systems - Guidelines for
the application of ISO 55001
When comparing ISO 55000 to PAS 55, it can be seen that PAS 55-1 has been split into ISO 55000 and ISO 55001. The requirements specification is contained in ISO 55001 while the important terms and definitions are explained in ISO 55000. As with PAS 55-2, ISO 55002 provides more information on the interpretation and implementation of ISO 55001. Woodhouse(2014) explains that the most significant difference between the two standards is the targeted application scope. PAS 55 focuses explicitly on physical assets with slight ref- erence to and acknowledgement of other asset types. ISO 55001 is designed to address and apply to all types of assets even though the main focus is on the management of physical assets. The chief benefit of ISO 55000 is that it encapsulates a wide variety of industries that make use of assets within varying AM contexts.
The generalised nature of the ISO 55000 suite of documents (relative to PAS 55) has also resulted in more generic terms and definitions. For instance, ISO 55000 has reduced the lengthy description of AM in PAS 55 to:
“coordinated activity of an organisation to realise value from assets” (BSI, 2014a, p. 14).
Van den Honert et al. (2013) mention that the ISO 55000 suite of doc- uments provide a more comprehensive overview of AM than PAS 55 which results in a more conclusive document. PAS 55 provides a guideline in terms of what needs to be done, but there is no indication of what the minimum criteria is. In contrast to this, ISO 55001 specifies the minimum criteria that needs to be met for suggested activities while ISO 55002 offers guidelines for the interpretation an execution of those activities.
Woodhouse (2014) emphasises that the rewards associated with the suc- cessful implementation of AM cannot be ignored. The decision of ISO to recognise what needs to be done and to define the requirements of manage- ment systems to coordinate and sustain good practices was timely and that AM is considered to be a necessity in industry. ISO 55000 provides a list of generic ‘must do’ items that can be used by a wide spectrum of industries to ensure good AM. However, for the sake of completeness and to ensure that AM is described clearly, this thesis will refer to both ISO 55000 and PAS 55.
PAS 55 recognised that there are five broad categories of assets of which physical assets is only one. The others are human assets, information assets, financial assets and intangible assets. The BSI(2008a) points out that all of these assets have to be managed holistically in order to create maximum value. Figure 2.2shows how the different asset categories are related and the focus of PAS 55. Although PAS 55 focuses mainly on physical assets and asset systems (assets that are interrelated), it acknowledges that all of the asset types are inextricably linked. The BSI (2008a) also emphasises that, although human factors such as leadership, motivation and culture are not explicitly handled in PAS 55, they have a significant effect on the success of an AM system and thus require due consideration. These human factors influence the owners, managers, employees, contractors and suppliers of the organisation.
Importantqinterface:qmotivation, communication,qrolesqand responsibilities,qknowledge, experience,qleadership,qteamwork Importantqinterface:qlifeqcycle costs,qcapitalqinvestmentqcriteria, operatingqcosts,qvalueqofqasset performance Importantqinterface:qcondition,qperformance, activities,qcostsqandqopportunitiesq Importantqinterface:qreputation, image,qmorale,qconstraints, socialqimpact Physical Assets Vitalqcontext:qbusinessqobjectives,qpolicies,qregulation, performanceqrequirements,qriskqmanagement
Figure 2.2: PAS 55 focus and business context in relation to other assets.
This leads to an examination of the foundation on which AM is built. The BSI(2014a) explains that there are four fundamental aspects on which AM is based, namely:
• Value: ISO 55000 emphasises that assets are not the main focus of AM, but rather the potential value that can be provided to the organisation by those assets. The value, whether tangible or intangible, is calculated according to the organisational objectives.
• Alignment: Effective AM enables an organisation to translate its ob- jectives into technical and financial decisions, plans and activities. These decisions in turn, collectively support the achievement of organisational objectives.
• Leadership: Realisation of value depends on leadership and workplace culture. Asset Management can only be established, operated and im- proved within the organisation if all of the managerial levels are commit- ted and provide leadership.
• Assurance: By committing to AM, organisations are assured that assets will serve the purposes that they were set out to do. Effective governance of an organisation requires assurance. Assets, AM and AM systems all require assurance.
As Figure 2.2 illustrates, human assets are one of the five assets involved in AM. Ultimately an organisation is run and managed by people and effective functioning of management is essential for an organisation to prosper. This thesis aims to improve data communication to managers and thus it is im- portant to gain a better understanding of the different roles of people in AM environments. The next section discusses typical departments which can be found in AM organisations.