ISO/TC 251/SC



C:\CC Documents\ISO_PC 251 Asset management\Coordination Group\2012-06-11 and Prague\DIS preparations\55000\ISO_DIS_55000_(E).docDRAFT INTERNATIONAL STANDARD© ISO 2012 – All rights reservedISO/DIS 55000 27 Asset management — Overview, principles and terminologyGestion d'actifs — Vue d'ensemble, les principes et la terminologieAsset management — Overview, principles and terminologyE2012-07-18(40) EnquiryISOISO/ International Standard 2012ISO 55000ISO 55000ISO/DIS 55000 BSI Asset Management1 251 2Heading 2Heading 1 0 CR11bSTD Version 2.240 4 ISO/PC 251

Date:   2012-07-18

ISO/DIS 55000

ISO/PC 251/WG 1

Secretariat:   BSI

Asset management — Overview, principles and terminology

Gestion d'actifs — Vue d'ensemble, les principes et la terminologie

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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) 17

Annex B Information on asset management activities (informative) 18

Bibliography 19

Alphabetical index 20

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.

Introduction

0.1 Purpose

This e purpose of International Standard ISO 55000 is to 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) (i.e. asset management systems). 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 industries organizations across the broadest range of cultures. Adherence to these standards promises to provide uniformly predictable and positive results.

0.2 StructureRelationship 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.

The ISO management system standard format and approach provides a proven and recognizable delivery mechanism for developing requirements for an asset management system. Following this management system structure, the following suite of standards has been developed:

ISO 55000 Asset management – Overview, principles and terminology

ISO 55001 Asset management – Management systems – Requirements

ISO 55002 Asset management – Management systems – Guidelines on for the application of ISO 55001

0.3 Target audience

Thisese International Standard iss are primarily intended for use by:

← those involved in the establishment, implementation, maintenance and improvement of an asset management systems for the management of assets;

← those involved in delivering asset management activities and service providers;

← those seeking to declare, confirm, assess or seek certification of conformity to this International Standard; and

← internal and external parties, including certification bodies, to assess the organization’s ability to meet legal, regulatory and contractual requirements and the organization’s own requirements.

0.4 Benefits of the standards

The adoption of the ISO 5500Xx suite of standards will 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 will 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 the an organization’s objectives. Additionally, it offers the necessary controls to provide assurance of the delivery.

Asset management — Overview, principles and terminology

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 used for managing is applicable to the management of 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 applied to the management of physical assets, but this does not limit its application of the principles to other asset types.

This International Standard does not specify provide financial, accounting or technical requirements guidance for the managementmanaging of 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. This International Standard is not intended to be used on its own for certification, regulatory, or contractual purposes (except for the terms and definitions in conjunction with ISO 55001).

Overview

1 General

The nature and purpose of an organization, the its industry operating sector and the 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 organization’s asset management function and its asset the management system for asset management. Concepts and principles to successfully accomplish this are introduced within this International Standard. It should be noted that the ‘management system for asset management’ has been shortened to ‘asset management system’ for convenience in all three ISO 5500x standards.

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

2 Value realization and benefits

Asset management can realizes 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 may can be related to economic, environmental, social or other appropriate outcomes.

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

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

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/sSocial responsibility – - improved ability to demonstrate socially responsible and ethical business practices within the organization’s 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 for which the overall management system incorporates and integrates an asset management system into its overall management system can hasve a comprehensive framework that provides the organization with the opportunity to link outcomes and targets asset management objectives with specific organizational objectives. An organization that has implementsed an asset management system can achieve significant competitive or operational advantages by ensuring that resources assets are made available where they provide the most benefit.

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 organization’s needs. Such groupings of assets may can include asset systems, asset portfolios or asset types. Where 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 "Aasset life cycle" includess all the stages that an asset experiences over the its "asset life". The asset life cycle stages can be determined by the organization and be titled appropriate to the organization’s 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 may can hold value to one or more organizations over its life. The asset’s life cycle does not necessarily coincide with the period over which any one organization holds responsibility for the asset.

4 Asset management

1 Asset mManagement cConcepts

“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 and management managerial 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.

From an organizational level, tThe collective term used to describe the managingement 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 responsibility period for the organization. The "asset management life cycle" is the managingement of assets from an asset’s 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 strategic 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 its 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 Asset management principles

Asset management is founded on a set of principles. Some are common management principles. The absence of any one principle will can result in a reduction in the value realized from the use of assets. These principles should directly influence the organization’s 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’s objectives.

The value to be realized from an organization’s 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; and

2) decision-making processes that can transform organizational strategic intent into strategic, tactical and operational plans and/or goals; 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’s strategic objectives.

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

1) implement risk-based, information-driven planning and decision-making processes and activities capable of determining from the organizational objectives and the organization’s 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) Sspecify, design and implement an asset management system for the management of assets that:

← implements processes that meet the needs of the organization organizational need;

← satisfies companythe organization's and, its operational sector'sindustry, and 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 management managers are 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 organizational's purpose and consistently seek to achieve the organization’sal objectives and goals.

This principle requires that the organization willshould:

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

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

5) regularly consult on significant changes to the asset management system and the identification 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 willshould:

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

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

7) develop control points for continual improvement;

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

9) provide the necessary resources for demonstration of assurance.

5 Asset management system (i.e. a management system for asset management)

1 Description of anWhat is an asset management system

An asset management system is a set of interrelated or interacting elements of an organization, that to 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”.

Conformance with ISO 55001 requires an organization to establish a management system for asset management, and specifies the requirements for that system. The establishment of a newan asset management system, however, should be a strategic decision for an organization, and is not a decision that will should be taken lightly in any organization.

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

2 Need for anWhy an asset management system is needed

Asset management is complex and cuts acrosscovers all parts of the an organization. Assets canmay serve more than one purpose and may 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 the its organizational objectives.

a) Benefits derived from a management system for n asset management system

In a large organization tThe process of creating an asset management system will can require significant time, effort and expense. The organization does not need to wait until the system is fully operational, to begin accruing benefits. Fortunately there are many benefits and opportunities along the way, , for example:

← Using anAn integrated management systems approach is likely to be considered in many organizations, allowsing an orgnization's asset management system to build on elements of other existing management systems, such as quality, environment or safetyDesigning the asset management system will can uncover new uses for asset information.

← The asset management system will should include address information- management, decision-making and control. Asset management is data intensive and new tools and procedures processes may beare often necessary to collect, assemble, manage, analyze and use asset data. Additional decision-making and control structuresprocesses will can also be necessary to deliver on the promise of the alignment ofing asset performance with organizational objectives. There is aare benefits in identifying determining and planning to create these tools. The creation of these tools maycan stimulate or improve other iInformation tTechnology projects and programs.

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

h) Benefits for top management

i) There are many additional benefits that the asset management system can provide, and some of the key ones are listed below:

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

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

j) Benefits for other parts of the organization

The An asset management system can interacts with many other parts of the organization. For example, the organization's Hhuman resources management function, for example willshould work with its asset managers on the development of competency models, training programs and processes for coaching and mentoring. These developments benefit both functions.

A similar interaction can exists with the organization's information systems. Asset management is data and information intensive;. Iit will requireneeds 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 beis beneficial to both. The place value of such information systems to the organization's in decision-making processes is can be raised by its their interaction with asset management data.

k) Benefits of integrating asset management with the finance function

Integration of an otherganization's asset management plans with itsthe long term financial plans allows can enable the balancing of short-term financial needs with the needs of medium- term activity plans, and sometimes with the much longer life-term plans that someof 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 Rrisk-based decision-making processes can also becomes more effective by because it considersaddressing both asset and financial risks together, and by balancinges performance costs and risks.

3 Elements of an asset management system

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 cContext

10) Leadership

11) Planning

12) Support

13) Operation

14) Performance eEvaluation

15) Improvement

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

3 ISO 55001 provides requirements relating to the above elements, while ISO 55002 provides guidance on the application of these requirements.

4 Organizational cContext

The direction of the organization is 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 will can have a significant impact on decision making criteria, it is important that these are taken into account in the organization's decision- making processes.

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

5 Leadership

Leaders at all levels need to be directly involved in the planning and relevant phases 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 needs toshould consider address how the asset management system risks can be cascaded from the organisationorganization’s strategic risks , and how they takewhat actions should be taken and provide resources to manage the identified risks and opportunities, and the provision of the necessary resources.

Top management needs toshould ensure that any necessary resources are provided to support the development and maintenance of the asset management system. The goals 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 requirements processes of the asset management system.

6 Planning

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

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

The organization should develop a plans for the design, development and, implementation and maintenance of itsthe asset management system. The plan for the asset management system dshould describes the structures, roles and responsibilities necessary to implement establish the asset management plans system and operate it effectively. The organization should determines the actions that are necessary for addressing risks when planning for the asset management system.

The asset management system should supports the development of asset management plans that have specific and measurable outcomes, and provides the interface for the organization’s strategic plan and unit-level business plans and operating plans.

Expenditure on assets, and where appropriate, the revenue derived from assets, will can be a major factor in managing the finances for part of financial management for asset intensive organizations. The asset management system should enable the linking of asset management plans to financial plans, to coordinateLinking asset management and financial management allows an assessments of the financial status and funding requirements of the organization.

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 allows ancan support the assessment of assessment of the financial status and funding requirements of the organization.

7

8 Support

The aAsset management function should receives support from virtually allmany other parts of the organization. Marshaling this such support and applying, verifying and improving it should beis 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 establishes appropriate and effective processes for managing the competence of persons undertaking asset managementAM activities under its control.

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.

9 Operation

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

Changing an asset management system process and/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.

10 Performance eEvaluation

Top management should monitors and reviews the organization’s 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

11 Improvement

The organization should needs to consideraddress any determined nonconformities, and their associated consequences, in its assets, asset management and the its asset management system. The organization needs to address nonconformities and their associated consequences, to minimize adverse effects on the organization itself and on its stakeholders' needs and expectations.

The organization should undertake Ccorrective actions are actions taken to address the root cause(s) of identified 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 promotes continual improvement, to ensure the suitability, adequacy and effectiveness of the asset management system and asset management. Continual improvement is most effective, It works best when it is proactive and makes use of the results of performance evaluations.

6 The iIntegrated mManagement sSystems aApproach

The ISO 5500x 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 requirements, asset-specific or activity-specific technical requirements or give guidance on how ISO 55001 should be interpreted and applied within an specificindustrial sector or to particular asset types.

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 thereby can reduceing the effort involved in developing and maintaining processes for multiple management systems.

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

The extent to which the its asset management system is integrated will be different for each organization and may can change as its asset management system matures. In many organizations the asset management system will can be naturally integrated with other management systems -..

Terms and definitions

1 General terms

3.1.1

audit

systematic, independent and documented Error! Reference source not found. (Error! Reference source not found.) 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/TMB/TAG13-JTCG/N316IEC 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 Error! Reference source not found. (Error! Reference source not found.)) to achieve its Error! Reference source not found.s (Error! Reference source not found.)

Note 1 to entry: Error! Reference source not found. (Error! Reference source not found.) capabilities include Error! Reference source not found.es (Error! Reference source not found.), resources, Error! Reference source not found.s (Error! Reference source not found.) and technologies to enable the effective and efficient development and delivery of Error! Reference source not found. (Error! Reference source not found.) Error! Reference source not found.s (Error! Reference source not found.) and Error! Reference source not found. (Error! Reference source not found.) activities, and their Error! Reference source not found. (Error! Reference source not found.).

3.1.3

competence

ability to apply knowledge and skills to achieve intended results

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.10]

3.1.4

conformity

fulfillment of a Error! Reference source not found. (Error! Reference source not found.)

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.18]

3.1.5

continual improvement

recurring activity to enhance Error! Reference source not found. (Error! Reference source not found.)

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.22]

3.1.6

correction

action to eliminate a detected Error! Reference source not found. (Error! Reference source not found.)

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.20]

3.1.7

documented information

information required to be controlled and maintained by an Error! Reference source not found. (Error! Reference source not found.) 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.

Note 2 to entry: Documented information can refer to:

– the Error! Reference source not found. (Error! Reference source not found.), including related Error! Reference source not found.es (Error! Reference source not found.)

– information created in order for the Error! Reference source not found. (Error! Reference source not found.) to operate (documentation)

– evidence of results achieved (records)

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.11]

3.1.8

effectiveness

extent to which planned activities are realized and planned results achieved

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.06]

3.1.9

monitoring

determining the status of a system, a Error! Reference source not found. (Error! Reference source not found.) 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 TMB/TAG13-JTCG/N316, 3.15, modified – Note 2 to entry has been added]

3.1.10

measurement

Error! Reference source not found. (Error! Reference source not found.) to determine a value

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.16]

3.1.11

nonconformity

non-fulfillment of a Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: Nonconformity can be any deviation from: asset Error! Reference source not found. (Error! Reference source not found.) Error! Reference source not found.s (Error! Reference source not found.); relevant work standards, practices, procedures, legal requirements, etc.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.19, modified – Note 1 to entry has been added]

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 Error! Reference source not found. (Error! Reference source not found.)).

Note 3 to entry: An objective can be expressed in other ways, e.g. as an intended outcome, a purpose, an operational criterion, an Error! Reference source not found. (Error! Reference source not found.) 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 Error! Reference source not found.s (Error! Reference source not found.) standards, Error! Reference source not found. (Error! Reference source not found.) objectives are set by the Error! Reference source not found. (Error! Reference source not found.), consistent with the asset management Error! Reference source not found. (Error! Reference source not found.), to achieve specific measurable results.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 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 Error! Reference source not found.s (Error! Reference source not found.)

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.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.01]

3.1.14

organizational strategic plan

Error! Reference source not found.’s (Error! Reference source not found.) goals and Error! Reference source not found.s (Error! Reference source not found.) and means for achieving them

Note 1 to entry: Some Error! Reference source not found.s (Error! Reference source not found.) call this a “corporate plan”, “corporate strategic plan” or “business plan”.

3.1.15

outsource, verb

make an arrangement where an external Error! Reference source not found. (Error! Reference source not found.) performs part of an organization’s function or Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: An external Error! Reference source not found. (Error! Reference source not found.) is outside the scope of the Error! Reference source not found. (Error! Reference source not found.) although the outsourced function or Error! Reference source not found. (Error! Reference source not found.) 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 TMB/TAG13-JTCG/N316, 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, Error! Reference source not found.es (Error! Reference source not found.), products (including services), systems or Error! Reference source not found.s (Error! Reference source not found.).

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

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.13, modified – Note 3 to entry has been added]

3.1.17

plan

detailed formulation of a programme to achieve an Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: An Error! Reference source not found. (Error! Reference source not found.) plan can be for an Error! Reference source not found. (Error! Reference source not found.), asset type, class, Error! Reference source not found. (Error! Reference source not found.) or Error! Reference source not found. (Error! Reference source not found.).

3.1.18

policy

intentions and direction of an Error! Reference source not found. (Error! Reference source not found.) as formally expressed by its Error! Reference source not found. (Error! Reference source not found.)

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.07]

3.1.19

process

set of interrelated or interacting activities which transforms inputs into outputs

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.12]

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 Error! Reference source not found. (Error! Reference source not found.) and stakeholders (Error! Reference source not found.) that the need or expectation under consideration is implied.

Note 2 to entry: A specified requirement is one that is stated, for example in Error! Reference source not found. (Error! Reference source not found.).

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.03]

3.1.21

risk

effect of uncertainty on Error! Reference source not found.s (Error! Reference source not found.)

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

Note 2 to entry: Error! Reference source not found.s (Error! Reference source not found.) 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 Error! Reference source not found. (Error! Reference source not found.)).

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 Error! Reference source not found. (Error! Reference source not found.) that can affect, be affected by, or perceive themselves to be affected by a decision or activity

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.02]

3.1.23

top management

person or group of people who directs and controls an Error! Reference source not found. (Error! Reference source not found.) at the highest level

Note 1 to entry: Top management has the power to delegate authority and provide resources within the Error! Reference source not found. (Error! Reference source not found.).

Note 2 to entry: If the scope of the Error! Reference source not found. (Error! Reference source not found.) covers only part of an Error! Reference source not found. (Error! Reference source not found.), 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 TMB/TAG13-JTCG/N316, 3.05]

2 Terms relating to ‘assets’

3.2.1

asset

something that has potential or actual value to an Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: Value can be tangible or intangible, financial or non-financial, and includes consideration of Error! Reference source not found.s (Error! Reference source not found.) and liabilities. It can be positive or negative at different stages of the Error! Reference source not found. (Error! Reference source not found.).

Note 2 to entry: For most Error! Reference source not found.s (Error! Reference source not found.), 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 Error! Reference source not found. (Error! Reference source not found.) 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 Error! Reference source not found. (Error! Reference source not found.) experiences over the Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: The number and naming of the stages and the activities under each stage are usually determined by the Error! Reference source not found. (Error! Reference source not found.).

3.2.4

asset life cycle stage

identifiable segment of an Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: The number and naming of the stages and the activities under each stage are usually determined by the Error! Reference source not found. (Error! Reference source not found.).

3.2.5

asset portfolio

Error! Reference source not found.s (Error! Reference source not found.) that are within the scope of the asset Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: A portfolio is typically established and assigned for management 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 Error! Reference source not found.s (Error! Reference source not found.) 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

Error! Reference source not found. (Error! Reference source not found.) having significant potential to impact on the achievement of the Error! Reference source not found.’s (Error! Reference source not found.) Error! Reference source not found.s (Error! Reference source not found.)

Note 1 to entry: Error! Reference source not found.s (Error! Reference source not found.) can be safety-critical, environment-critical or Error! Reference source not found.-critical (Error! Reference source not found.) and can relate to legal, regulatory or statutory Error! Reference source not found.s (Error! Reference source not found.).

Note 2 to entry: Critical assets can refer to those Error! Reference source not found.s (Error! Reference source not found.) necessary to provide services to critical customers.

Note 3 to entry: Error! Reference source not found.s (Error! Reference source not found.) can be distinguished as being ‘critical’ in a similar manner to individual Error! Reference source not found.s (Error! Reference source not found.).

3 Terms relating to ‘asset management’

3.3.1

asset management

coordinated activities of an Error! Reference source not found. (Error! Reference source not found.) to realize value from Error! Reference source not found.s (Error! Reference source not found.)

Note 1 to entry: Realization of value will normally involve a balancing of costs, Error! Reference source not found.s (Error! Reference source not found.), opportunities and Error! Reference source not found. (Error! Reference source not found.) benefits.

3.3.2

preventive action

action to eliminate the cause of a potential Error! Reference source not found. (Error! Reference source not found.) or other undesirable potential situation

Note 1 to entry: This definition is specific to Error! Reference source not found. (Error! Reference source not found.) activities only.

Note 2 to entry: There can be more than one cause for a potential Error! Reference source not found. (Error! Reference source not found.).

Note 3 to entry: Preventive action is taken to prevent occurrence and to preserve an Error! Reference source not found.’s (Error! Reference source not found.) function whereas Error! Reference source not found. (Error! Reference source not found.) is taken to prevent recurrence.

Note 4 to entry: Preventive action is normally carried out while the Error! Reference source not found. (Error! Reference source not found.) 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 Error! Reference source not found. (Error! Reference source not found.).

[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 Error! Reference source not found. (Error! Reference source not found.) and predict the need for Error! Reference source not found. (Error! Reference source not found.) or Error! Reference source not found.s (Error! Reference source not found.)

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 Error! Reference source not found. (Error! Reference source not found.) 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 Error! Reference source not found. (Error! Reference source not found.) over its Error! Reference source not found. (Error! Reference source not found.)

Note 1 to entry: Total costs can include Error! Reference source not found.s (Error! Reference source not found.), Error! Reference source not found. (Error! Reference source not found.) Error! Reference source not found. (Error! Reference source not found.) losses and other business impacts.

4 Terms relating to ‘asset management system’

3.4.1

corrective action

action to eliminate the cause of a Error! Reference source not found. (Error! Reference source not found.) 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.

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.21, modified – Note 1 to entry has been added]

3.4.2

management system

set of interrelated or interacting elements of an Error! Reference source not found. (Error! Reference source not found.) to establish policies (Error! Reference source not found.) and Error! Reference source not found.s (Error! Reference source not found.) and Error! Reference source not found.es (Error! Reference source not found.) 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 Error! Reference source not found.’s (Error! Reference source not found.) structure, roles and responsibilities, planning, operation, etc.

Note 3 to entry: The scope of a management system may include the whole of the Error! Reference source not found. (Error! Reference source not found.), 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 Error! Reference source not found. management (Error! Reference source not found.) management system also includes the organization's strategies and Error! Reference source not found.s (Error! Reference source not found.).

[SOURCE: ISO/IEC Directives, Procedures Specific to ISO, Annex SL, Appendix 3, definition TMB/TAG13-JTCG/N316, 3.04, modified – Note 4 to entry has been added]

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 |

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 |Non-destructive testing |

|Condition monitoring |Pressure equipment |

|Risk management |Financial management |

|Quality management |Value management |

|Environmental management |Shock and vibration |

|Systems and software engineering |Acoustics |

|Life cycle costing |Qualification and assessment of personnel |

|Dependability |Project management |

|Reliability, availability, maintainability |Property and property management |

|Configuration management |Facilities management |

|Tero-technology |Equipment management |

|Sustainable development |Commissioning process |

|Inspection |Energy management |

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

The URL for ISO standards is:

The URL for IEC standards is:

The URL for EN standards is:

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: iso/about/iso_members.htm

Further information on national standards can be obtained from the ISO database and searching by member country. The URL for National Standards Bodies is: iso/about/iso_members.htm

Bibliography

1] This Bibliography has been structured in two parts:-

2] A listing of documents that were referred to for information in the compilation of these Standards

3] Guidance on further material that may be of use to the reader of these Standards

4] 1.0

5] ISO 31000:2009, Risk management — Principles and guidelines

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

7] ISO/IEC 15288:2008, Systems and software engineering – Systems life cycle processes

8] IEC/ISO 31010:2009, Risk management – Risk assessment techniques31000:2009, Risk management -- Principles and guidelines

9] IEC 60300-1:2003, Dependability management – Dependability management systems

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

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 |

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