ISODIS_55000

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International Organization for Standardization, 2012

DRAFT INTERNATIONAL STANDARD ISO/DIS 55000

ISO/TC 251 Secretariat: BSI

Voting begins on Voting terminates on 2012-11-12 2013-02-12

INTERNATIONAL ORGANIZATION FOR STANDARDIZATION ORGANISATION INTERNATIONALE DE NORMALISATION

Asset management Overview,principlesandterminology

ICS 01.040.03; 03.100.01

In accordance with the provisions of Council Resolution 15/1993 this document is circulated in the English language only.

Conformment aux dispositions de la Rsolution du Conseil 15/1993, ce document est distribu en version anglaise seulement.

To expedite distribution, this document is circulated as received from the committee secretariat. ISO Central Secretariat work of editing and text composition will be undertaken at publication stage.

Pour acclrer la distribution, le prsent document est distribu tel qu'il est parvenu du secrtariat du comit. Le travail de rdaction et de composition de texte sera effectu au Secrtariat central de l'ISO au stade de publication.

ISO/DIS 55000

Copyright noticeThis ISO document is a Draft International Standard and is copyright-protected by ISO. Except as permitted under the applicable laws of the users country, neither this ISO draft nor any extract from it may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying, recording or otherwise, without prior written permission being secured. Requests for permission to reproduce should be addressed to either ISO at the address below or ISOs member body in the country of the requester.

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ii ISO 2012 All rights reserved

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Contents Page

Foreword ............................................................................................................................................................iv Introduction.........................................................................................................................................................v 1 Scope ......................................................................................................................................................1 2 Overview.................................................................................................................................................1 2.1 General ...................................................................................................................................................1 2.2 Value realization and benefits..............................................................................................................1 2.3 Assets .....................................................................................................................................................2 2.4 Asset management................................................................................................................................2 2.4.1 Asset management concepts...............................................................................................................2 2.4.2 Asset management principles .............................................................................................................3 2.5 Asset management system ..................................................................................................................5 2.5.1 Description of an asset management system ....................................................................................5 2.5.2 Need for an asset management system..............................................................................................5 2.5.3 Elements of an asset management system........................................................................................6 2.6 The integrated management systems approach................................................................................8 3 Terms and definitions ...........................................................................................................................9 3.1 General terms ........................................................................................................................................9 3.2 Terms relating to assets ...................................................................................................................13 3.3 Terms relating to asset management..............................................................................................14 3.4 Terms relating to asset management system ................................................................................15 Annex A Commonly used terms (informative) ...............................................................................................16 Annex B Information on asset management activities (informative)............................................................17 Bibliography......................................................................................................................................................18 Alphabetical index............................................................................................................................................19

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Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies (ISO member bodies). The work of preparing International Standards is normally carried out through ISO technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organizations, governmental and non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.

International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.

The main task of technical committees is to prepare International Standards. Draft International Standards adopted by the technical committees are circulated to the member bodies for voting. Publication as an International Standard requires approval by at least 75 % of the member bodies casting a vote.

Attention is drawn to the possibility that some of the elements of this document may be the subject of patent rights. ISO shall not be held responsible for identifying any or all such patent rights.

ISO 55000 was prepared by Project Committee ISO/PC 251, Asset Management.

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ISO 2012 All rights reserved v

Introduction

0.1 Purpose

This International Standard provides an overview of the benefits, principles, concepts and terminology relating to assets, asset management and asset management systems (i.e. management systems for the management of assets). It also provides the context for ISO 55001 Asset management Management systems Requirements; and ISO55002 Asset management Management systems Guidelines for the application of ISO 55001.

International cooperation in the preparation of these standards has confirmed that identified common practices can be applied to the broadest range of assets in the broadest range of organizations across the broadest range of cultures. Adherence to these standards promises to provide uniformly predictable and positive results.

0.2 Relationship with other standards

The ISO 5500X suite of International Standards may be used in combination with any relevant sector or asset type-specific asset management standards and technical specifications. ISO 55001 specifies requirements for an effective asset management system. Other standards detail sector-specific, asset-specific or activity-specific technical requirements or give guidance on how ISO 55001 should be interpreted and applied within a specific sector or to particular asset types.

0.3 Target audience

This International Standard is primarily intended for use by:

those involved in the establishment, implementation, maintenance and improvement of an asset management system;

those involved in delivering asset management activities and service providers;

0.4 Benefits of the standards

The adoption of the ISO 5500X suite of standards can enable an organization to achieve its intended outcomes through the effective and efficient management of its assets. The application of an asset management system provides assurance that those outcomes can be achieved consistently and sustainably over time. The requirements set out in ISO 55001 provide a structured approach for developing an asset management system to support the achievement of an organizations objectives.

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DRAFT INTERNATIONAL STANDARD ISO/DIS 55000

ISO 2012 All rights reserved 1

Asset management Overview, principles and terminology

1 Scope

This International Standard provides an overview of the principles, concepts and terminology relating to assets, asset management and asset management systems, and the expected benefits from adopting these approaches.

This International Standard can be applied to all types of assets and by all types and sizes of organizations.

NOTE 1 This International Standard is particularly intended to be used for managing physical assets, but this does not limit its application to other asset types.

This International Standard does not provide financial, accounting or technical guidance for managing specific asset types.

NOTE 2 The phrase management system for asset management has been abbreviated to asset management system for convenience in all three ISO 5500X International Standards.

2 Overview

2.1 General

The nature and purpose of an organization and its operating environment all have a strong influence on the type of assets that the organization requires to achieve its objectives. These influencing factors need to be considered when designing, planning, implementing and improving the organizations asset management and its asset management system. Concepts and principles to successfully accomplish this are introduced within this International Standard.

An organization's and its stakeholders' intents should be translated into design criteria for an asset management system. The principles of asset management should be used to guide the design of the asset management system, which in turn can support and be applied to, the organization's asset management activities.

2.2 Value realization and benefits

Asset management can realize value from assets in the delivery of organizational objectives. What constitutes value will depend on these objectives as well the nature and purpose of the organization and the needs and expectations of its stakeholders. Value can be related to economic, environmental, social or other appropriate outcomes.

Asset management supports the achievement of benefits while balancing cost, risk and performance related to assets. The benefits of asset management can include, but are not limited to:

a) Improved financial performance - improved services, outputs, return on investment and reduced costs can result without sacrificing short or long-term organizational performance. This can also lead to the preservation of asset value.

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b) Managed risk reduced financial losses, improved safety, minimized environmental and social impact, resulting in reduced liabilities such as insurance premiums, fines and penalties.

c) Improved services and outputs consistently matching the needs and expectations of the customer and achieving required service levels.

d) Corporate/social responsibility improved ability to demonstrate socially responsible and ethical business practices within the organizations community.

e) Demonstrated compliance transparent conformity with requirements and adherence to asset management standards, policies and processes can be achieved.

f) Enhanced reputation through improved customer satisfaction, stakeholder awareness and confidence.

g) Improved organizational sustainability appropriate handling of short and long-term effects, expenditures and performance can improve sustainability of operations and the organization.

An organization which incorporates and integrates an asset management system into its overall management system can have a comprehensive framework that provides the organization with the opportunity to link outcomes and asset management objectives with specific organizational objectives. An organization that implements an asset management system can achieve significant competitive or operational advantages by ensuring that assets are made available where they provide the most benefit.

2.3 Assets

An asset is something that has potential or actual value to an organization. The value will vary between different organizations and their stakeholders. Value can be tangible or intangible, financial or non-financial.

Assets may be grouped according to the organizations needs. Such groupings of assets can include asset systems, asset portfolios or asset types. When assets are grouped, additional value can be achieved beyond that which is derived from the individual assets on their own.

"Asset life" is the period from conception to end-of-life for an asset. An "asset life cycle" includes all the stages that an asset experiences over its "asset life". The asset life cycle stages can be determined by the organization and be titled appropriate to the organizations needs. There are a number of standards and other publications that address the breakdown of the basic asset life cycle stages and the merits for doing so.

An asset can hold value to one or more organizations over its life. The assets life cycle does not necessarily coincide with the period over which any one organization holds responsibility for the asset.

2.4 Asset management

2.4.1 Asset management concepts

Asset management is the set of coordinated activities that an organization uses to realize value from assets in the delivery of its outcomes or objectives. Realization of value requires the achievement of a balance of costs, risks and benefits, often over different timescales.

Asset management can only be effective in the context of the organizational objectives and when considering the operating environment of the organization.

Asset management requires that the organization examines the need for, and performance of, assets often at different hierarchical levels (e.g. individual assets or integrated sets that make up asset systems) and the application of different analytical approaches at differing asset life cycle stages. It enables the development of a life cycle picture of what is to be done to assets in relation to what is to be achieved from them.

The collective term used to describe the managing of assets under the control of the organization is the "asset management life cycle". The "asset management life cycle" begins with the commencement of the

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responsibility period for the organization. The "asset management life cycle" is the managing of assets from an assets conception or acquisition to its end-of-life or other disposition.

A key feature of asset management is the alignment or traceability of activities undertaken on assets to the organizational objectives. This is achieved through:

a) the establishment of an asset management policy and strategic plan for asset management, including an integrated set of asset management objectives that are aligned with the organizational objectives and stakeholder needs and requirements;

b) the development of asset management plans in line with the strategic plan for asset management, while balancing costs, risks and benefits over the required timeframes;

c) the efficient implementation of the asset management plans and the control of asset-related risks; and

d) the measurement of asset and asset management performance, to enable continual improvement.

2.4.2 Asset management principles

Asset management is founded on a set of principles. Some are common management principles. The absence of any one principle can result in a reduction in the value realized from the use of assets. These principles should directly influence the organizations asset management plans and the development of its asset management system. An organization may choose to mandate these principles through its asset management policy.

The asset management principles are as follows:

a) Assets exist to provide value to the organization and its stakeholders

Asset management does not focus on the asset itself, but on the value that the asset can provide to the organization. Value is defined by the organization and its stakeholders and is determined from the organizational objectives.

The value to be realized from an organizations assets can be both financial and non-financial in nature.

This principle requires that the determination of value includes:

1) a clear statement of what the organization is to achieve, over what time period, and with what level of assurance to its stakeholders;

2) decision-making processes that can transform organizational strategic intent into strategic, tactical and operational plans; and

3) the establishment of decision-making processes to:

identify the assets or asset systems and their boundaries

identify asset functions;

identify the performance required, including the level of assurance associated with the achievement of purpose from assets, asset management and the asset management system; and

develop criteria for selecting and managing assets that balances risk, cost and benefit of the assets over their life cycles.

b) Asset management transforms strategic intent into technical and financial decisions, plans and activities

Asset management decisions (technical, financial and operational) can collectively enable the achievement of the organizational objectives.

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This principle requires that to achieve its strategic intent, the organization should:

1) implement risk-based, information-driven planning and decision-making processes and activities capable of determining from the organizational objectives and the organizations risk framework:

what assets are needed and what each asset is required to achieve, over what time period, and with what level of assurance;

the impacts of short and long term objectives; and

the tasks, activities and resources needed to deliver the required asset performance and level of assurance.

2) integrate the asset management processes with the other functional areas of the organization, such as finance, human resources, information system, spares/logistics and operations; and

3) specify, design and implement an asset management system that:

implements processes that meet the needs of the organization;

satisfies the organization's and its operational sector's, regulatory, technical, and financial standards; and

uses appropriate information systems to support competent people making decisions in a timely manner, through the provision of good quality data and information.

c) Leadership and workplace culture are determinants of value realization

Leadership and commitment from all levels of managers are essential for successfully establishing, operating and improving asset management within the organization. The leadership style of the organization should match the organizational objectives.

Engaged employees and service providers should understand the organization's purpose and consistently seek to achieve the organizational objectives.

This principle requires that the organization should:

1) clearly define the responsibilities and authorities for both asset management and the supporting asset management system;

2) ensure that its employees are both competent, and authorized, to discharge those responsibilities; and

3) regularly consult on significant changes to the asset management system and the determination of improvements.

d) Asset management provides assurance that the assets fulfill their required function

The need for assurance arises from the governance processes of an organization. Its origin is in the stewardship relationship between the top management of an organization and its stakeholders. Assurance applies to assets, asset management and the asset management system.

This principle requires that the organization should:

1) link the organizational objectives to the required function and performance of the asset during asset conception stages;

2) implement processes for assurance across all asset life cycle stages;

3) develop control points for continual improvement;

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4) ensure personnel competence is appropriate for the achievement of the required function and performance of the asset; and

5) provide the necessary resources for demonstration of assurance.

2.5 Asset management system

2.5.1 Description of an asset management system

An asset management system is a set of interrelated or interacting elements of an organization, that establish asset management policies and objectives, and the processes needed to achieve those objectives.

An asset management system is not simply an information system; it also includes the organization structure, roles, responsibilities, business processes, plans, operation, etc (see 3.4.2). This can cause some confusion, since many vendors of information systems that support asset management also refer to their products as asset management systems.

The establishment of an asset management system should be a strategic decision for an organization, and is not a decision that should be taken lightly.

ISO 55001 specifies the minimum requirements for an effective asset management system.

2.5.2 Need for an asset management system

Asset management is complex and covers all parts of an organization. Assets can serve more than one purpose and can be operated on by many different functional units of the organization. An asset management system is needed to coordinate and control activities undertaken on assets by the organization over different life cycle stages, and to align these with its organizational objectives.

a) Benefits derived from an asset management system

The process of creating an asset management system can require significant time, effort and expense. The organization does not need to wait until the system is fully operational, to begin accruing benefits, for example:

Asset management is data intensive and new tools and processes are often necessary to collect, assemble, manage, analyze and use asset data. The creation of these tools can stimulate or improve other information technology projects and programs.

The process of creating an asset management system can bring in new perspectives to the organization and new ideas on value creation from assets. This can also stimulate improvements in other organizational functions such as purchasing, finance, human resources, information technology, etc.

b) Benefits for top management

An asset management system can help in gaining an understanding of assets, their performance, investment needs, and asset value as an input to decision-making, organizational strategy development, and business planning.

Top management need to recognize and address the barriers between functions (such as projects, operations and maintenance) that prevent the integrated life-cycle managing of assets, and the problems of taking a short-term approach.

c) Benefits for other parts of the organization

An asset management system can interact with many other parts of the organization. For example, the organization's human resources function, should work with its asset managers on the development of

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competency models, training programs and processes for coaching and mentoring. These developments benefit both functions.

A similar interaction can exist with the organization's information systems. Asset management is data and information intensive; it needs data collection, cleansing and refinement. Since some asset data comes from control systems, which are often isolated from other information systems, this new integration can be beneficial to both. The value of such information systems to the organization's decision-making processes can be raised by their interaction with asset management data.

d) Benefits of integrating asset management with the finance function

Integration of an organization's asset management plans with its long term financial plans can enable the balancing of short-term financial needs with the needs of medium-term activity plans, and with the much longer-term plans that some assets require.

Linking asset management and financial management allows for better assessment of the financial position and funding requirements of the organization, and for the appraisal of alternatives for the acquisition, renewal, enhancement or disposal of assets. Robust financial information relating to assets creates a new resource for the organization's finance function.

The organization's risk-based decision-making processes can also become more effective by addressing both asset and financial risks together, and by balancing performance costs and risks.

2.5.3 Elements of an asset management system

2.5.3.1 General

The process of designing, planning, operating and improving an asset management system requires a thorough understanding of its elements and careful implementation. An asset management system can impact a large portion of an organization and can cut across many organizational silos, requiring integration and coordination of previously separate functions.

ISO 55001 provides a minimum set of requirements for an effective asset management system, while ISO 55002 provides guidance on the application of these requirements.

The asset management system requirements in ISO 55001 have been organized into seven specific elements:

1) Organizational context

2) Leadership

3) Planning

4) Support

5) Operation

6) Performance evaluation

7) Improvement

2.5.3.2 Organizational context

The direction of the organization should be determined by its top management. They develop and own the mission, vision and values of the organization. They also collect and interpret stakeholder inputs, concerns and expectations. Since the views and requirements of stakeholders can have a significant impact on decision

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making criteria, it is important that these are taken into account in the organization's decision-making processes.

When establishing or reviewing its asset management system, an organization should evaluate its external and internal contexts, since these can significantly influence the design and scope of its asset management system.

2.5.3.3 Leadership

Leaders at all levels need to be directly involved in the planning of asset management and the asset management system. Leaders translate objectives, develop and affirm Key Performance Indicators, evaluate plans, resolve conflicts and interface with other leaders.

Top management should address how the asset management system risks can be cascaded from the organizations strategic risks, what actions should be taken to manage the identified risks and opportunities, and the provision of the necessary resources.

Top management should ensure that any necessary resources are provided to support the asset management system. The objectives and measures for success should be unambiguous and communicated to the people responsible for the asset management system along with the need for adherence to the processes of the asset management system.

2.5.3.4 Planning

The organization should develop a strategic plan for asset management from its organizational objectives and through its asset management policy. The strategic plan may have a timeframe that extends beyond the organizations own business planning timeframe, to address the complete asset lives of its assets.

The organization's asset management objectives should be derived from its strategic plan and should translate the organizational objectives into specific asset management objectives.

The organization should develop a plan for the design, development, implementation and maintenance of its asset management system. The plan should describe the structures, roles and responsibilities necessary to establish the asset management system and operate it effectively. The organization should determine the actions that are necessary for addressing risks when planning for the asset management system.

The asset management system should support the development of asset management plans that have specific and measurable outcomes, and provide the interface for the organizations strategic plan and unit-level business plans and operating plans.

Asset related revenue and expenses are critical in many organizations. The asset management system should enable the linking of asset management plans to financial plans and asset management reports to financial reports. This linking can support the assessment of the financial status and funding requirements of the organization.

2.5.3.5 Support

The asset management function should receive support from many other parts of the organization. Marshaling such support and applying, verifying and improving it should be an objective of the asset management system.

The processes of the asset management system should determine and provide the information needed to fulfil the strategic plan for asset management through a formalised approach (e.g. information needs analysis).

The organization should establish appropriate and effective processes for managing the competence of persons undertaking asset management activities under its control.

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Whatever the asset types being managed, the financial, human resource, information and other implications of asset management support activities need to be aligned with the relevant management systems and decision-making process of the organization.

2.5.3.6 Operation

The organization's asset management system should enable the direction, implementation and control of its asset management activities, including those that have been outsourced.

Changing an asset management system process or procedure could change the risk profile of the organization. These need to be evaluated for potential changes to the risk profile and mitigating actions taken prior to implementation.

2.5.3.7 Performance evaluation

Top management should monitor and review the organizations asset management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness including the effective operation of its policy, objectives and plans.

Similarly, top management should also monitor and review the organization's asset performance, and asset management performance, on a regular basis

2.5.3.8 Improvement

The organization should address any determined nonconformities, and their associated consequences, in its assets, asset management and its asset management system, to minimize adverse effects on the organization itself and on its stakeholders' needs and expectations. The organization should undertake corrective actions to address the root cause(s) of determined non-conformances, or incidents, in order to repair, manage consequences and to prevent, or reduce the likelihood of their recurrence.

The organization's asset management system should promote continual improvement, to ensure the suitability, adequacy and effectiveness of the asset management system and asset management. Continual improvement is most effective when it is proactive and makes use of the results of performance evaluations.

2.6 The integrated management systems approach

Using an integrated management systems approach allows an organization's asset management system to build on elements of other existing management systems, such as for quality, environment or safety, and can reduce the effort involved in developing and maintaining processes for multiple management systems.

The overall management system of an organization can have its own organizational sub-structure, processes, resources and personnel. It is likely that there are asset management sub-systems such as engineering, information, risk, finance and document-management. These sub-systems need to work together efficiently.

The extent to which its asset management system is integrated will be different for each organization and can change as its asset management system matures. .

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3 Terms and definitions

3.1 General terms

3.1.1 audit systematic, independent and documented process (3.1.19) for obtaining audit evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled

Note 1 to entry: An audit can be an internal audit (first party) or an external audit (second party or third party), and it can be a combined audit (combining two or more disciplines).

Note 2 to entry: Audit evidence and audit criteria are defined in ISO 19011.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition 3.17]

3.1.2 capability measure of the ability of an entity (system, person or organization (3.1.13)) to achieve its objectives (3.1.12)

Note 1 to entry: Asset management (3.3.1) capabilities include processes (3.1.19), resources, competences (3.1.3) and technologies to enable the effective and efficient development and delivery of asset management (3.3.1) plans (3.1.17) and asset life (3.2.2) activities, and their continual improvement (3.1.5).

3.1.3 competence ability to apply knowledge and skills to achieve intended results


3.1.4 conformity fulfillment of a requirement (3.1.20)


3.1.5 continual improvement recurring activity to enhance performance (3.1.16)


3.1.6 correction action to eliminate a detected nonconformity (3.1.11)


3.1.7 documented information information required to be controlled and maintained by an organization (3.1.13) and the medium on which it is contained

Note 1 to entry: Documented information can be in any format and media and from any source.

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Note 2 to entry: Documented information can refer to:

the management system (3.4.2), including related processes (3.1.19)

information created in order for the organization (3.1.13) to operate (documentation)

evidence of results achieved (records)


3.1.8 effectiveness extent to which planned activities are realized and planned results achieved


3.1.9 monitoring determining the status of a system, a process (3.1.19) or an activity

Note 1 to entry: To determine the status, there may be a need to check, supervise or critically observe.

Note 2 to entry: For the purposes of asset management, monitoring may also refer to determining the status of an asset. This is typically referred to as 'condition monitoring' or 'performance monitoring'.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition 3.15, modified Note 2 to entry has been added]

3.1.10 measurement process (3.1.19) to determine a value


3.1.11 nonconformity non-fulfillment of a requirement (3.1.20)

Note 1 to entry: Nonconformity can be any deviation from: asset management system (3.4.2) requirements (3.1.20); relevant work standards, practices, procedures, legal requirements, etc.


3.1.12 objective result to be achieved

Note 1 to entry: An objective can be strategic, tactical or operational.

Note 2 to entry: Objectives can relate to different disciplines (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process (3.1.19)).

Note 3 to entry: An objective can be expressed in other ways, e.g. as an intended outcome, a purpose, an operational criterion, an asset management (3.3.1) objective or by the use of other words with similar meaning (e.g. aim, goal, or target).

Note 4 to entry: In the context of asset management systems (3.4.2) standards, asset management (3.3.1) objectives are set by the organization (3.1.13), consistent with the asset management policy (3.1.18), to achieve specific measurable results.

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[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition 3.08, modified Note 4 to entry has been modified]

3.1.13 organization person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives (3.1.12)

Note 1 to entry: The concept of organization includes, but is not limited to, sole-trader, company, corporation, firm, enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated or not, public or private.


3.1.14 organizational strategic plan organizations (3.1.13) goals and objectives (3.1.12) and means for achieving them

Note 1 to entry: Some organizations (3.1.13) call this a corporate plan, corporate strategic plan or business plan.

3.1.15 outsource, verb make an arrangement where an external organization (3.1.13) performs part of an organizations function or process (3.1.19)

Note 1 to entry: An external organization (3.1.13) is outside the scope of the management system (3.4.2) although the outsourced function or process (3.1.19) is within the scope if its activities affect the effectiveness of the asset management system.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition 3.14. modified Note 1 to entry has been modified]

3.1.16 performance measureable result

Note 1 to entry: Performance can relate either to quantitative or qualitative findings.

Note 2 to entry: Performance can relate to the management of activities, processes (3.1.19), products (including services), systems or organizations (3.1.13).

Note 3 to entry: For the purposes of asset management, performance can relate to assets


3.1.17 plan detailed formulation of a programme to achieve an objective (3.1.12)

Note 1 to entry: An asset management (3.3.1) plan can be for an asset (3.2.1), asset type, class, asset system (3.2.6) or asset portfolio (3.2.5).

3.1.18 policy intentions and direction of an organization (3.1.13) as formally expressed by its top management (3.1.23)


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3.1.19 process set of interrelated or interacting activities which transforms inputs into outputs


3.1.20 requirement need or expectation that is stated, generally implied or obligatory

Note 1 to entry: Generally implied means that it is custom or common practice for the organization (3.1.13) and stakeholders (3.1.22) that the need or expectation under consideration is implied.

Note 2 to entry: A specified requirement is one that is stated, for example in documented information (3.1.7).


3.1.21 risk effect of uncertainty on objectives (3.1.12)

Note 1 to entry: An effect is a deviation from the expected positive and/or negative.

Note 2 to entry: Objectives (3.1.12) can relate to different disciplines (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process (3.1.19)).

Note 3 to entry: Risk is often characterized by reference to potential events (ISO Guide 73, 3.5.1.3) and consequences (ISO Guide 73, 3.6.1.3) or a combination of these.

Note 4 to entry: Risk is often expressed in terms of a combination of the consequences of an event (including changes in circumstances) and the associated likelihood (ISO Guide 73, 3.6.1.1) of occurrence.

NOTE 5 Uncertainty is the state, even partial, of deficiency of information related to, understanding or knowledge of an event, its consequence, or likelihood.

[SOURCE: ISO/IEC Guide 73, definition 1.1]

3.1.22 stakeholder person or organization (3.1.13) that can affect, be affected by, or perceive themselves to be affected by a decision or activity


3.1.23 top management person or group of people who directs and controls an organization (3.1.13) at the highest level

Note 1 to entry: Top management has the power to delegate authority and provide resources within the organization (3.1.13).

Note 2 to entry: If the scope of the management system (3.4.2) covers only part of an organization (3.1.13), then top management refers to those who direct and control that part of the organization.

[SOURCE ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition 3.05]

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3.2 Terms relating to assets

3.2.1 asset something that has potential or actual value to an organization (3.1.13)

Note 1 to entry: Value can be tangible or intangible, financial or non-financial, and includes consideration of risks (3.1.21) and liabilities. It can be positive or negative at different stages of the asset's life (3.2.2).

Note 2 to entry: For most organizations (3.1.13), physical assets usually refer to equipment, inventory and properties owned by the organization. Physical assets are the opposite of intangible assets, which are non-physical assets such as leases, brands, digital assets, use rights, licences, intellectual property rights, reputation or agreements.

Note 3 to entry: A grouping of assets referred to as an asset system (3.2.6) could also be considered as an asset.

3.2.2 asset life period from conception to end-of-life

Note 1 to entry: Conception and end-of-life are described in IEC 60300

3.2.3 asset life cycle all of the stages that an asset (3.2.1) experiences over the asset life (3.2.2)

Note 1 to entry: The number and naming of the stages and the activities under each stage are usually determined by the organization (3.1.13).

3.2.4 asset life cycle stage identifiable segment of an asset life cycle (3.2.3)

Note 1 to entry: The number and naming of the stages and the activities under each stage are usually determined by the organization (3.1.13).

3.2.5 asset portfolio assets (3.2.1) that are within the scope of the asset management system (3.4.2)

Note 1 to entry: A portfolio is typically established and assigned for managerial control purposes. Portfolios for physical hardware might be defined by category such as plant, equipment, tools, land, etc. Software portfolios might be defined by software publisher, or by platform (PC, server, mainframe, etc).

3.2.6 asset system set of assets (3.2.1) that interact or are interrelated

3.2.7 asset type a grouping of assets (3.2.1) having common characteristics that distinguish those assets as a group or class

Note 1 to entry: Examples of asset types include, but are not limited to, physical assets, information assets, intangible assets, critical assets, (3.2.7) enabling assets, linear assets, Information Technology (IT) assets, infrastructure assets, moveable assets, etc

3.2.8 critical asset asset (3.2.1) having significant potential to impact on the achievement of the organizations (3.1.13) objectives (3.1.12)

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Note 1 to entry: Assets (3.2.1) can be safety-critical, environment-critical or performance-critical (3.1.16) and can relate to legal, regulatory or statutory requirements (3.1.20).

Note 2 to entry: Critical assets can refer to those assets (3.2.1) necessary to provide services to critical customers.

Note 3 to entry: Asset systems (3.2.6) can be distinguished as being critical in a similar manner to individual assets (3.2.1).

3.3 Terms relating to asset management

3.3.1 asset management coordinated activities of an organization (3.1.13) to realize value from assets (3.2.1)

Note 1 to entry: Realization of value will normally involve a balancing of costs, risks (3.1.21), opportunities and performance (3.1.16) benefits.

3.3.2 preventive action action to eliminate the cause of a potential nonconformity (3.1.11) or other undesirable potential situation

Note 1 to entry: This definition is specific to asset management (3.3.1) activities only.

Note 2 to entry: There can be more than one cause for a potential nonconformity (3.1.11).

Note 3 to entry: Preventive action is taken to prevent occurrence and to preserve an assets (3.2.1) function whereas corrective action (3.4.1) is taken to prevent recurrence.

Note 4 to entry: Preventive action is normally carried out while the asset (3.2.1) is functionally available and operable or prior to the initiation of functional failure.

Note 5 to entry: Preventive action includes the replenishment of consumables where the consumption is a functional requirement (3.1.20).

[SOURCE: ISO 9000:2005, 3.6.4, modified Note 3 to entry has been modified; Notes 1, 4 and 5 have been added]

3.3.3 predictive action action to monitor the condition of an asset (3.2.1) and predict the need for preventive action (3.3.2) or corrective actions (3.4.1)

Note 1 to entry: Predictive action is also commonly referred to as either condition monitoring or performance monitoring.

3.3.4 level of service parameters or combination of parameters that reflect social, environmental and economic outcomes that the organization (3.1.13) has agreed to deliver

Note 1 to entry: The parameters can include: safety, customer satisfaction, quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost and availability, etc.

3.3.5 life cycle costs total cost of an asset (3.2.1) over its asset life cycle (3.2.3)

Note 1 to entry: Total costs can include risks (3.1.21), asset (3.2.1) performance (3.1.16) losses and other business impacts.

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3.4 Terms relating to asset management system

3.4.1 corrective action action to eliminate the cause of a nonconformity (3.1.11) and to prevent recurrence

Note 1 to entry: In the case of other undesirable outcomes, action is necessary to minimize or eliminate the causes and to reduce the impact or prevent recurrence. Such actions fall outside the concept of corrective action in the sense of this definition.


3.4.2 management system set of interrelated or interacting elements of an organization (3.1.13) to establish policies (3.1.18) and objectives (3.1.12) and processes (3.1.19) to achieve those objectives

Note 1 to entry: A management system can address a single discipline or several disciplines.

Note 2 to entry: The system elements include the organizations (3.1.13) structure, roles and responsibilities, planning, operation, etc.

Note 3 to entry: The scope of a management system may include the whole of the organization (3.1.13), specific and identified functions of the organization, specific and identified sections of the organization, or one or more functions across a group of organizations.

Note 4 to entry: The asset management (3.3.1) system also includes the organization's strategies and plans (3.1.17).


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Annex A Commonly used terms

(informative)

The following terms have common dictionary definitions that are suitable for use in this International Standard; however, as they are usually given with multiple definitions in dictionaries, this annex provides guidance on which is the preferred definition. This listing is taken primarily from document ISO/TMB/TAG13-JTCG/N318.

Table A.1 Commonly used terms

Term Definition

Leadership ability to be ahead of others in assuming responsibility and authority

Programme planned series of steps, projects or activities to be carried out

Framework underlying structure

Design working out the form, fit or function of something

Purpose anticipated (intended or expected) outcome that guides planned actions

Determine establish or find out Define state or describe exactly the nature, scope or meaning of that which is under

consideration

Identify establish the identity of something

Verification confirmation, through provision of objective evidence, that specified requirements have been fulfilled

Efficiency process which results in saving resources, E.g. money, time, etc

Alignment Arrangement in a straight line or in correct relative position

Principle fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning

Type category of people or things having common characteristics

Attribute quality or feature regarded as a characteristic or inherent part of someone or something

Systemic relating to a system, especially as opposed to a particular part

Systematic done or acting according to a fixed plan or system; methodical

Outcome the way a thing turns out; a consequence, or a result

Element an essential or characteristic part of something abstract

Criterion a principle or standard by which something may be judged or decided

Information what is conveyed or represented by a particular arrangement or sequence of things

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Annex B Information on asset management activities

(informative)

Extensive information regarding specific asset management activities exist in current ISO and IEC International Standards.

Further information can be obtained from regional (e.g. European EN) standards and national standards.

Relevant subject areas addressed by such existing standards include, but are not limited to, the following:

Data management

Condition monitoring

Risk management

Quality management

Environmental management

Systems and software engineering

Life cycle costing

Dependability

Reliability, availability, maintainability

Configuration management

Tero-technology

Sustainable development

Inspection

Non-destructive testing

Pressure equipment

Financial management

Value management

Shock and vibration

Acoustics

Qualification and assessment of personnel

Project management

Property and property management

Facilities management

Equipment management

Commissioning process

Energy management

Users of the ISO 5500X International Standards should also refer to existing ISO, IEC, regional and national standards wherever possible, to ensure consistent delivery of asset management throughout their organization.

The URL for ISO standards is: http://www.iso.org/iso/iso_catalogue.htm

The URL for IEC standards is: http://webstore.iec.ch

The URL for EN standards is: http://esearch.cen.eu/esearch

Information on national standards can be obtained from the individual National Standards Bodies. The URL for a listing of ISO's Member Bodies (the National Standards Bodies) and their contact details is: www.iso.org/iso/about/iso_members.htm

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Bibliography

[1] ISO 31000:2009, Risk management Principles and guidelines

[2] ISO/IEC Guide 73:2002, Risk management Vocabulary Guidelines for use in standards

[3] ISO/IEC 15288:2008, Systems and software engineering Systems life cycle processes

[4] IEC/ISO 31010:2009, Risk management Risk assessment techniques

[5] IEC 60300-1:2003, Dependability management Dependability management systems

[6] PAS 55:2008, Asset Management Part 1: Specification for the optimized management of physical assets. British Standards Institution

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Alphabetical index

A M

asset 3.2.1 management system 3.4.2

asset life 3.2.2 measurement 3.1.10

asset life cycle 3.2.3 monitoring 3.1.9

asset life cycle stage 3.2.4 N

asset management 3.3.1 nonconformity 3.1.11

asset portfolio 3.2.5 O

asset system 3.2.6 objective 3.1.12

asset type 3.2.7 organization 3.1.13

audit 3.1.1 organizational strategic plan

3.1.14

C outsource 3.1.15

capability 3.1.2 P

competence 3.1.3 performance 3.1.16

conformity 3.1.4 plan 3.1.17

continual improvement 3.1.5 policy 3.1.18

correction 3.1.6 predictive action 3.3.3

corrective action 3.4.1 preventive action 3.3.2

critical asset 3.2.8 process 3.1.19

D R

documented information 3.1.7 requirement 3.1.20

E risk 3.1.21

effectiveness 3.1.8 S

L stakeholder 3.1.22

level of service 3.3.4 T

life cycle costs 3.3.5 top management 3.1.23

ScopeOverviewGeneralValue realization and benefitsAssetsAsset managementAsset management conceptsAsset management principles

Asset management systemDescription of an asset management systemNeed for an asset management systemElements of an asset management systemGeneralOrganizational contextLeadershipPlanningSupportOperationPerformance evaluationImprovement

The integrated management systems approach

Terms and definitionsGeneral termsTerms relating to assetsTerms relating to asset managementTerms relating to asset management system

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Documents

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