IBM Maximo and ISO 55000
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This presentation is around ISO 55000 – following PAS 55, the worldwide standard for Asset Management and how IBM’s Maximo Asset Management software is supporting or leveraging this asset management standard.
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IBM Maximo and ISO 55000
- 1. © 2014 IBM Corporation Asset Management Best Practices: Leveraging ISO 55000 as the worldwide standard for asset management
- 2. © 2013 IBM Corporation2 There was Publically Available Standard 55… PAS 55 We have International Standard Organization 55000… ISO 55000 In the Beginning… In 2014…
- 3. © 2013 IBM Corporation3 4.1 General requirements 4.2 Asset Management policy 4.3.1 Asset Management strategy 4.3.2 Asset Management objectives 4.3.3 Asset Management plan(s) 4.3.4 Contingency planning 4.4.1 Structure, authority and responsibilities 4.4.2 Outsourcing of Asset Management activities 4.4.3 Training, awareness and competence 4.4.4 Communication, participation and consultation 4.4.5 Asset Management System documentation 4.4.6 Information management 4.4.7.1 Risk management process(es) 4.4.7.2 Risk management methodology 4.4.7.3 Risk identification and assessment 4.4.7.4 Use and maintenance of asset risk management 4.4.8 Legal and other requirements 4.4.9 Management of change 4.5.1 Life-cycle activities 4.5.2 Tools, facilities and equipment 4.6.1 Performance and condition monitoring 4.6.2 Investigation of asset-related failures, incidents and nonconformities 4.6.3 Evaluation of compliance 4.6.4 Audit 4.6.5.1 Corrective and Preventative action 4.6.5.2 Continual Improvement 4.6.6 Records 4.7 Management review PAS 55 Indices 4 Context of the organization 4.1 Understanding the organization and its context 4.2 Understanding the needs and expectations of stakeholders 4.3 Determining the scope of the asset management system 4.4 Asset management system 5 Leadership 5.1 Leadership and commitment 5.2 Policy 5.3 Organizational roles, responsibilities and authorities 6 Planning 6.1 Actions to address risks and opportunities for the asset management system 6.2 Asset management objectives and planning to achieve them 7 Support 7.1 Resources 7.2 Competence 7.3 Awareness 7.4 Communication 7.5 Information requirements 7.6 Documented information 8 Operation 8.1 Operational planning and control 8.2 Management of change 8.3 Outsourcing 9 Performance evaluation 9.1 Monitoring, measurement, analysis and evaluation 9.2 Internal audit 9.3 Management review 10 Improvement 10.1 Nonconformity and corrective action 10.2 Preventive action 10.3 Continual improvement ISO 55000 Indices
- 4. © 2013 IBM Corporation4 MaturityTrends 1970 1980 New Principles PdM / TPM Inventory Procurement Measurements 1990 Computer Based Maturing EAM SW Planning/Scheduling Integration of PdM C-Level Attention ERP’s 2000 Process Focused PAS55 emergence Lifecycle awareness RCM 2010 Maturity Advancement EAM Solution acquisitions Assessments / PAS 55 Industry Solutions Using SW effectively 2015 and beyond… Technology Integration ISO 55000 Asset Convergence Cloud / SaaS Mobile Analytics Lets take a historic look at maintenance maturity over several decades Evolution Manual Based Paper Work Orders Reactive Focused Frequency Based PM’s Necessary Evil Absence Evolving Advanced Proficient Cognizant Source: IBM EAM Body of Knowledge and IBM’s ISO 55000 Maturity Rating Scale
- 5. © 2013 IBM Corporation5 Today industries are often faced with similar pressures and challenges Real Estate and Facilities Plant and Production Mobile Assets Infrastructure Information Technology Ageing and underperforming assets Competitive environment Poor reliability and utilization Shareholder expectations Capital constraints Outsourcing / new business models Environmental / green agenda Security and safety pressures Technology changes Overhead costs Globalization
- 6. © 2013 IBM Corporation6 Those challenges are faced by people; they often ask, “How can I…” CEOs CIOs COOs CFOs Maintenance Leaders Procurement Leaders IT Leaders Inventory Leaders …become world class with more efficient and cost-effective operations? …obtain more intelligence about the condition of our assets? ...transform our relationship with our suppliers? …know if we have the “right” assets and inventory ? …reduce unplanned outages? … improve customer feeback …ensure compliance with regulators? …implement best practice organization and processes across the enterprise to improve the productivity of our field-force? …reduce total cost of ownership over the asset lifecycle? …improve reliability and safety performance? …Make more timely decisions
- 7. © 2013 IBM Corporation7 Where does one begin with so many questions and complexities ? Framework A structured frame of reference to get organized and address your asset management needs … ISO 55000 An International Standard
- 8. © 2013 IBM Corporation8 4 Context of the organization 4.1 Understanding the organization and its context 4.2 Understanding the needs and expectations of stakeholders 4.3 Determining the scope of the asset management system 4.4 Asset management system 5 Leadership 5.1 Leadership and commitment 5.2 Policy 5.3 Organizational roles, responsibilities and authorities 6 Planning 6.1 Actions to address risks and opportunities for the asset management system 6.2 Asset management objectives and planning to achieve them 7 Support 7.1 Resources 7.2 Competence 7.3 Awareness 7.4 Communication 7.5 Information requirements 7.6 Documented information 8 Operation 8.1 Operational planning and control 8.2 Management of change 8.3 Outsourcing 9 Performance evaluation 9.1 Monitoring, measurement, analysis and evaluation 9.2 Internal audit 9.3 Management review 10 Improvement 10.1 Nonconformity and corrective action 10.2 Preventive action 10.3 Continual improvement ISO 55000 Framework and Indices International Organization for Standardization Source: ISO 5001 Document - Asset management — Management systems — Requirements 01/2014
- 9. © 2013 IBM Corporation9 The relationship of the asset management system to asset management Assets that are within the scope of the asset management system Set of interelated or interacting elements to establish asset management policy, asset management objectives and processes to achieve those objectives Coordinated activity of an organization to realize value from assets Source: ISO 5000 Document | Asset management — Overview, principles and terminology 1/2014
- 10. © 2013 IBM Corporation10 What are the Fundamentals of the ISO 55000 Standard ? Interna onal Organiza on for Standardiza on Source: ISO 5000 Documentb Asset management — Overview, principles and terminology Assets exist to provide value to the organization and its stakeholders. Asset management translates the organizational objectives into technical and financial decsions, and activities Leadership and workplace culture are determinants of realization of value. Asset management gives assurance that assets will fulfil their required purpose. Value Leadership Alignment Assurance
- 11. © 2013 IBM Corporation11 What can the use of this standard do for any enterprise related to Asset Management ? Interna onal Organiza on for Standardiza on “The fundamentals of asset management and the supporting asset management system introduced in this International Standard, when integrated into the broader governance and risk framework of an organization, can contribute tangible benefits and leverage opportunities.” Source: ISO 5000 Document | Asset management — Overview, principles and terminology
- 12. © 2013 IBM Corporation12 Interna onal Organiza on for Standardiza on Source: ISO 5000 Document- Asset management — Overview, principles and terminology 1/2014 a) improved financial performance: improving the return on investments and reducing costs can be achieved, while preserving asset value and without sacrificing the short or long-term realization of organizational objectives; b) informed asset investment decisions: enabling the organization to improve its decision making and effectively balance costs, risks, opportunities and performance; c) managed risk: reducing financial losses, improving health and safety, good will and reputation, minimizing environmental and social impact, can result in reduced liabilities such as insurance premiums, fines and penalties; d) improved services and outputs: assuring the performance of assets can lead to improved services or products that consistently meet or exceed the expectations of customers and stakeholders; e) demonstrated social responsibility: improving the organization’s ability to, for example, reduce emissions, conserve resources and adapt to climate change, enables it to demonstrate socially responsible and ethical business practices and stewardship; f) demonstrated compliance: transparently conforming with legal, statutory and regulatory requirements, as well as adhering to asset management standards, policies and processes, can enable demonstration of compliance; g) enhanced reputation: through improved customer satisfaction, stakeholder awareness and confidence; h) improved organizational sustainability: effectively managing short and long-term effects, expenditures and performance, can improve the sustainability of operations and the organization; i) improved efficiency and effectiveness: reviewing and improving proccesses, procedures and asset performance can improve efficiency and effectiveness, and the achievement of organizational objectives. “The benefits of asset management can include, but are not limited to the following:”
- 13. © 2013 IBM Corporation13 Lets look at the relationship between key elements of an asset management system. Organiza onal plans and Organiza onal objec ves Implementa on of asset management plans Asset management policy Asset por olio Strategic asset management Plan (SAMP) Asset management objec ves Performance evalua on and improvement Asset Management Plans Plans for developing asset management system + relevant support Asset management system + relevant support elements Stakeholder and organiza on context Source: ISO 5000 Document | Asset management — Overview, principles and terminology 1/2014 Note: The grey highlighted box Designates the boundry of the Asset management system Interna onal Organiza on for Standardiza on
- 14. © 2013 IBM Corporation14 What are some of the more common benefits companies can gain from a standardized asset management system approach? Business Scenarios ROI Points Examples Labor utilization Up 10% - 20% • A major US railroad saved US $5M by better tracking labor to specific work Asset utilization Up 3% - 5% • A large OEM reduced overhaul process time from 56 days to 21 days Equipment purchases Down 3% - 5% • A fleet management company saved US $9.5M by meeting 100% availability with less Warranty recoveries Up 10% - 50% • A consumer products company with a medium size fleet increased warranty recovery 50% Inventory needs Down 20% - 30% • A large passenger railroad was able to identify US $18M in excess or obsolete inventory Inventory carrying costs Down 5% - 20% • A railroad reduced saved US $1.8M impacting financing, insurance, handling, overhead, etc. Material Costs Reduced 10% - 50% • A rail maintenance service company reduced costs 20% by optimizing material purchases Purchasing labor Reduced 10 - 50% • A fleet management company reduced purchasing staff by 20% 14
- 15. © 2013 IBM Corporation15 What are the main messages of success from ISO 55000? Source: ISO 5000 Document | Asset management — Overview, principles and terminology 1/2014
- 16. © 2013 IBM Corporation16 © 2013 IBM Corporation16 EAM Body of Knowledge
- 17. © 2013 IBM Corporation17 JP Kurkowski Project Office and EAM BoK Lead ISO 55000 Thought Leader Cloud & Smarter Infrastructure IBM Software Group Jeff Kurkowski/Poughkeepsie/IBM 1407 Barouche Ct Wilmington, NC 28412 Internet: kurkowski@us.ibm.com Global SIM: + 372 8139 7163 Contact
Hinweis der Redaktion
- This presentation is around ISO 55000 – following PAS 55, the (new) world wide standard for Asset Management and how IBM’s Maximo Asset Management software is supporting or leveraging this asset management standard. The content is not for a specific industry, but generally talking about the standard and how Maximo fits with this standard and it zooms in into the different chapters and view within the standard.
- Speaker Guidance: Lets take a small evolutionary look at the progression of Maintenance/EAM maturity over several decades. Read the progressive decade notes highlighting some of the key points for each AT THE END, when the “man” and scale appear: We should note that even with technology where it is today at this point in time, it does not mean all maintenance organizations are at the same point of evolution. It depends on the maturity of a organization (at any point it time on this timeline) and their ability to apply the technology effectively.
- Speaker Guidance: Industries around the world face similar pressures and challenges related to the maintaining their assets. While their size and scale can vary, the pressures are typically very consistent. In fact this chart is about 18 years old but is still valid today. One of the changing elements over time that is not inherently clear in this slide is Technology. Technology has consistatnly avdvanced….
- Speaker Guidance: Asset Management challenges are faced by people and organizations and must be considered. They often ask, “How can I…” Today, depending upon the company, we may be talking to many varying types of people – from the leaders of maintenance, procurement and information technology to the “C Suite” - COOs, CFOs, CEOs, and CIOs. This is VERY DIFFERENT from 10-15 years ago… The C-Suite looked at maintenace as a necessary evil and not relevant for discussion in the “Board Room”…
- Speaker Guidance: So with all of these questions and so many complexities, how does one BEGIN to address them and get organized around their specific needs. One needs get organized with a structured framework. A framework to help group and prioritize ones asset management needs. Today, Asset Management organizations can use ISO 55000. An internataional asset management standard. It is a framework designed to help asset management organizations gauge themselfves to the leading practices of the standard. It can also be used to rate ones asset management maturity (more on that later….)
- Guidance: PAS 55 and and now the recently released ISO 55000 are recognized asset management standards. They are being looked at or used by many enterprises around the world. While the standards define elements that should be in place, the documentation itself does not provide a definitive rating of where one stands against the standards or HOW to implement. This can vary from organization and industry and is left to those who use the standards in various ways. There are many companies that help clients understand where they rank related to the standards as well hwo to address defiencies. These companies approach to rating and implementing can vary greatly. IBM fully supports these standards and has an approach to rating and implanting that we believe is innovative, logical and simple. Our asset management procucts are conducive supporting the ISO 55000 standard.
- Guidance: Here we will look at the relationship of some of the terminology used in the specifiation and their relationships especially the terms “Asset Manageement” and “Asset Management System” Lets start with Asset Portfolio. These are the assets, typically the ones that are critical to the core business, that are/would be with scope of the organizations Strategic Asset Management Plan and for ISO 55000 actions The Asset Management “System” is not an IT system per say (although an IT system/applicaion may be a part of it) . It is a set of interacting elements that make up the policies, procedures and processes that are defined to achieve the organizations/enterprises objectives. Again, an Asset Management system/application can/may be an element of the system Asset Management is the cordinated activities of the organization to use the elements in the Asset Management System. And last;y Managing the Organization. “Not all asset management activities can be formalized through an “asset management system”. Aspects such as leadership, culture, motivation, behaviour, can have a significant influence on the achievement of asset management objectives. These aspects are managed by the organization outside the asset management system.
- Guidance: Behind the detailed indices are four fundamental elements of ISO 55000. INSTRUCTION: Advance the slide animation and read each element and description
- Guidance: When embraced and integrated by an enterprise or organization, the successful adoption of even some (if not all) of the standard can contribute to tangible and measurable benefits. Success and benefits begin with the establishment of realistic organizational objectives.
- Guidance: Here are some specfic benefits ISO 55000 can help promote INSTRUCTION: Go through some (if not all) of these benefits at the “bold text level”
- Guidance: This diagram out of the ISO 55000 document will help one understand the how the “asset management system” works. It depicts the interactions of the various elements, but if studied, it will one realize the overall lifecycle of the PAS 55000 standard as well. One in place, it is the general “continous improvement’ process that keeps the lifecycle going…..
- Speaker Guidance: Of course any discussion on the use of an asset management standard or more specifically ISO 55000 would be incomplete without providing context to some of the types of savings that companies and enterprises can recognize by embracing and implementing structured and integrated approach to asset management.
- Speaker Guidance: This chart shows examples of value areas we identified with the client.