European Federation of National Maintenance Societies vzw
© EFNMS vzw
ISO 55001 Asset management — Management systems — Requirements andEN 16646 Maintenance within physical asset management
PSK seminar 8.5.2015, Järvenpää
Kari Komonen, Promaint
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Expanded from presentation at Sector Forum
“Energy Management” (SFEM) –21th meeting, Brussels 17th March 2015
European Federation of National Maintenance Societies vzw
Background of importance
There are many reasons why physical asset management has become a more essential part of management activities and management science, e.g.:
aging of asset systems
integration of asset systems
increased quality requirements for infrastructure
increased requirements from the safety and environmental point of view
growing risks
growing turbulence in the market
globalization and increasing competition
pressure for higher profitability and return on assets
incentive systems of top management
rigid accounting principles
combinations of the above trends
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Root (principle) causes for events, challenges and problems
In order to understand which improvement measures are appropriate we should know the root causes for our challenges.
For example, Root Causes for Production Losses can be diverse
1. Related to basic maintenance activities
2. Connected to a change in production process
3. Related to an original investment
4. Related to operations
5. Related to external factors
A management system for physical assets should be established in order to manage these root causes
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Root (principle) causes for production losses PSK 7903
Related to basic maintenance activities
1. Not done
2. Not done according to the plan
3. Incorrect or deficient plan
Connected to a change in production process
1. Operating constraints too tight
2. Increased process load
3. Increased environmental load
Related to an investment
1. Process characteristic
2. Incorrect or deficient operating and maintenance instructions
3. Nonconformity with the requirements
4. Manufacturing fault
5. Incorrectly installed or commissioned Machine
Related to operations
1. Change in operating plan
2. Incorrect maintenance or cleaning performed by operators
3. Change in operating mode Inadequate misuse prevention
4. Misuse of the equipment
5. Insufficient process control
Related to external factors
1. Wrong raw material, energy or consumable
2. Switch to another process
3. Natural phenomenon
4. Scarcity
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Root (principle) causes for challenges within physical asset management
We can have a different view on challengesA root (principle) cause for a challenge can be e.g.
• Technical reasons e.g. new technology or old technology or wrong specification, equipment not according to specification, bad maintenance…
• Changes in the business environment after the acquisition of the asset
• Poor decision making procedures and methods
• Poor understanding of the requirements on the market
• Lack of competences
• A poorly defined and established management system for physical assets
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European Federation of National Maintenance Societies vzw 6
Future business drivers 1: EFNMS survey
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European Federation of National Maintenance Societies vzw 7
Future business drivers 2: EFNMS survey
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European Federation of National Maintenance Societies vzw
Future business drivers 3: EFNMS survey
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European Federation of National Maintenance Societies vzw
Future business drivers 4: EFNMS survey
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
The purpose of emerging standards
(1) Standards ISO 55000, 55001 and 55002 are management system standards for asset management and for the certification of the management system (compare with Quality Management).
(2) CEN EN16646 ‘Maintenance within Physical Asset Management’ is not a management system standard, but an informative one. However, it is a good starting point for the assessment of physical asset management practices and for development.
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
General ISO structure for all management system standards
1. Organizational context2. Leadership3. Planning4. Support5. Operation6. Performance evaluation7. Improvement
ISO 55001 Requirements
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
ISO 55001 Asset management system: requirements
Context of the organization• Understanding the organization and its context• Understanding the needs and expectations of
stakeholders• Determining the scope of the asset management
systemLeadership• Leadership and commitment • Policy • Organizational roles, responsibilities and
authorities Planning• Actions to address risks and opportunities for the
asset management system• Asset management objectives and planning to
achieve them
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Support• Resources• Competence • Awareness• Communication• Information requirements• Documented informationOperation• Operational planning and control • Management of change• Outsourcing Performance evaluation• Monitoring, measurement, analysis and evaluation• Internal audit • Management review Improvement• Nonconformity and corrective action• Preventive actions• Continual improvement
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
EN 16646 ‘Maintenance within physical asset management’
Overview of physical asset management
Physical asset management system (management system for physical asset)
Purpose of asset management system
Interaction between organizational context, physical asset management and maintenance management
The influence of organizational context at the different levels of physical assets
Physical asset management processes
Physical asset management processes and life cycle stages
Life-cycle management, asset management and maintenance management processes
Interrelationship between maintenance and other processes at asset and asset system level
Performance monitoring
General asset management system requirements
Specific requirements
Organization and people enablers: organizational competences
Structure and procedures
Competences
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Eräitä käsitteitä
omaisuus, omaisuuseräkohteet, asiat tai kokonaisuudet, joilla on tai voi olla arvoa organisaatiolle
omaisuudenhallintaorganisaation koordinoitu toiminta, jolla hyödynnetään omaisuuden arvo
omaisuudenhallintasuunnitelma
dokumentoitu tieto, joka määrittelee yksittäiselle omaisuudelle tai omaisuusryhmälle edellytetyt toiminnot, resurssit ja aikataulut, jotta saavutetaan organisaation omaisuudenhallinnan tavoitteet
hallintajärjestelmä
joukko toisiinsa liittyviä tai vaikuttavia organisaation osia, joilla määritellään politiikat ja tavoitteet sekä prosessit, joilla nämä tavoitteet saavutetaan
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Some benefits of ISO 5500x
1. improved financial performance: improving the return on investments and reducing costs with the short or long-term realization of organizational objectives;
2. informed asset investment decisions: enabling the organization to improve its decision making
3. managed risk: reducing financial losses, improving health and safety, good will and reputation, minimizing environmental and social impact,
4. improved services and outputs
5. demonstrated social responsibility
6. demonstrated compliance: transparently conforming with legal, statutory and regulatory requirements
7. enhanced reputation: through improved customer satisfaction, stakeholder awareness and confidence
8. improved organizational sustainability: effectively managing short and long-term effects, expenditures and performance, can improve the sustainability of operations and the organization;
9. improved efficiency and effectiveness
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Mitä ihmeen hyötyä ?
• Terminologian selkiintyminen
• Aiheuttaa ulkoista painetta
• Hyvä peruste kehittämisprojektille
• Antaa neuvoja siitä, minkälainen omaisuudenhallintajärjestelmän pitää olla ja miksi
• Antaa ohjeita siitä, mitä asioita kannattaisi evaluoida organisaation toiminnassa
• Antaa ohjeita elinjaksoprosessien kehittämiseen
• Antaa suuntaviivoja, mitä asioita pitäisi huomioida päätöksenteko- ja seurantajärjestelmiä kehitettäessä
• Parantaa organisaation yhteistyökykyä ja käytäntöjä
• Selkeyttää vastuita ja valtuuksia
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Some important dimensions of the ISO 55001
• Asset hierarchy
• Organizational context
• Life cycle management
• Leadership– Such as organizational roles, responsibilities and authorities
• Planning
• Information management
• Performance evaluation
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European Federation of National Maintenance Societies vzw
Asset hierarchy (ISO and CEN)
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Asset portfolio level:e.g. corporation
Asset system level:e.g. a plant or production line
Individual asset level: e.g. a turbine
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Omaisuusvalikoima
Omaisuuskokonaisuus
Yksittäinen omaisuuserä
European Federation of National Maintenance Societies vzw
Strategic asset management process
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Strategic
analyzes
Company
Market and
communityTechnology
Requirements for physical assets
Maintenance management
strategy, objectives and plans
Asset management strategy,
objectives and plans
Metrics and
controls
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
The influence of the organizational context on the maintenance function
Requirements for
• the maintenance function, • its modes of operations and • its performance
depend on external and internal influencing factors which result e.g. in
• operating conditions,
• operating constraints,
• operational modes,
• criticalities
• economic necessities,
• business environment and
which further affect greatly on key performance indicators
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Organizational context
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Specific features e.g.
•Determine economic life time
•Short economic life -time
•LCP-approach required
•Increase flexibility
•New asset concepts
Specific features e.g.
•Determine economic and
technical life time
•Short economic life -time
•Short pay-back time required
•LCP-approach required
•Manage dynamics
•New asset concepts
Specific features e.g.
•Long economic life -time
•Long pay-back time
•Increase life time
•LCC-approach
•Continuous improvements
Specific features e.g.
•Short technical life -time
•Determine technical life time
•LCC-approach
•New asset concepts
•Improve technical performance
Mark
et
Dynamic
Stable
Technology
Stable Dynamic
Long life cycle Short life cycle
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Life-cycle approach: a framework for physical asset management
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Investment Use of investment
• Changing operational requirements
• Wear and aging
• Technical obsolescence
• Environmental obsolescence
• Changing demand
• Changing competitive environment
• Modified product
• Economic obsolescence
Asset management of new installations focuses
on the optimisation of the life cycle profits of the
equipment (LCP-models)
Asset Management of plants in operation: the
focus is on upkeep of plants’ productivity and
profit making capability and improvements in
changing business environment
Design of
process and
equipment
Installation
and
commencing
Concept
designOperation and maintenance DisposalManufacturing
Komonen et al. 2005
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Physical asset management processes and life cycle management (EN 16646 with modifications)
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Organizational strategic
plan
Physical asset
management policy,
objectives, strategy and
plans
• Acquisition incl. design,
manufacturing, installation
• Operation
• Maintenance
• Modernization
• Disposal
Asset Management Support
Asset systems
1-N
Asset portfolio
Continuous
improvementand
performance
monitoring
Life cycle stages
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Contributions between asset management processes 1 (Antoine Despujols EDF, France)
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Contributions between asset management processes 2(Antoine Despujols EDF, France)
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Need for new key performance indicators
In addition to requirements for physical assets presented above, e.g. thefollowing risks could be avoided by using KPIs (in this standard, these KPIs arecalled general performance indicators):
• ‘silo‘ behavior of individual functional departments;• lack of holistic picture of success of asset management activities;• wrong allocation of resources to various functions of an organization;• wrong decisions regarding replacements and improvements;• decisions based on investment cost (purchasing cost) instead of life cycle
cost or profit;• incorrectly estimated length of asset's useful life in financial calculations;• improper financial decision making criteria for investment decisions;• uncertainty in decision making
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Examples of asset system level key performance indicators
• Return on physical assets
• Turnover of physical assets (sales/physical assets)
• Quality index (quality cost related to physical assets)
• HSE index (related to physical assets)
• Life cycle costs of physical assets (estimated and actual)
• Life cycle profit related to physical assets (estimated and actual)
• Aggregate annual costs related to physical assets (e.g. unavailability costs, replacement investments, maintenance costs, other costs related to physical assets)
• Comparison of annual investments and annual technical depreciation (which might give indication of degradation of the production equipment) / Physical assets
• OEE (Overall equipment effectiveness: availability x performance x quality rate)
• External criticality of production assets and Internal criticality of equipment
• Availability of the production system (production process)
• Reliability of the production system (production process) and Reliability of deliveries
• Maintenance costs regarding organizational context
European Federation of National Maintenance Societies vzw
EFNMS survey 1
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EFNMS survey 2
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EFNMS survey 3
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EFNMS survey 4
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EFNMS survey 5
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EFNMS survey 6
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EFNMS survey 7
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European Federation of National Maintenance Societies vzw
EFNMS survey 8
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Key performance indicators for various
root causes of physical asset eventsFrom PSK7903 standard with modifications
Root causes for unavailability safety and asset costs
Unavailability due to maintenance
Technical un-availability
Overall equipment effectiveness (OEE)
Operational equipment effectiveness(OPEE)
Caused by maintenance
X X X X
Caused by change in production process
X X X
Caused by an investment
X X X
Caused by operation
X X
Caused by external factors
X
Kari Komonen 2015
European Federation of National Maintenance Societies vzw
ISO 5500x standards
- Can be used as the quality management standards
- Focus on physical assets, but can also be used for some other asset types
- Standard follows the principles and structure set for all the ISO management system standard
- Organisation may be lead to think over how the asset management standards should be integrated with other management system standards
- ISO 55001 can be applied for certification purposes
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Need for other standards and tools 1
• ISO 55001 tells us, what issues asset management system should contain
• But it doesn’t say how asset management and life cycle processes should be organized at the different hierarchy levels
• What key performance indicators should one use within asset management system
• What kind of decision making methods and tools should be used
• How should organizational factors be taken into account within asset management plans
• How should cooperation between various functions of the organization be arranged
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Need for other standards and tools 2
• ISO 55001 standard describes, what issues asset management system should contain
• Deployment ISO 55001 standard can be facilitated by utilizing other standards
• The other standards could be e.g. other asset management standards, other management system standards, standards for life cycle management, maintenance standards etc.
• The development of life-cycle processes and related methods and procedures supports strongly the establishment of ISO 55001 standard.
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Kari Komonen 2015
European Federation of National Maintenance Societies vzw
Thank you!
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