ISO 55000

ISO - 55000


In the current scenario, all manufacturing organizations need to contend with unprecedented levels of competition to gain or keep market share. The result of complex global supply chains, increasing customer demands, international regulatory issues, the speed of new product introduction cycles and managing aging and obsoleting Assets in the plants are the biggest challenges in this era.

But today, being a ‘good’ organization is not enough. To become a ‘great’ organization, you need to change the way you deliver value through your business operations.

Asset management can transform asset value by minimizing downtime, avoiding duplication of work, improving resource utilization and efficiency.

Asset Vs Asset Management?

According to ISO 55000, “An asset is an item, thing or entity that has potential or actual value to an organization. The value will vary between different organizations and their stakeholders, and can be tangible or intangible, financial or non-financial.” whereas asset management is not only about managing assets, but about delivering real business value.

Asset Management Fundamentals:

Asset management is based on a set of fundamentals such as:

  • Value:

    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. The value will be determined by organization and its stakeholder in accordance with the organizational objectives.
  • Alignment:

    Asset management translates the organizational objectives into technical and financial decision, plans and activities.
  • Leadership:

    Leadership and workplace culture are determinants of value realization. Leadership and commitment from all managerial levels is essential for successfully establishing, operating and improving asset management within the organization.
  • Assurance:

    Asset management enables the assets to fulfil their required function. The need for assurance arise from the need to effectively govern an organization. Assurance applies to asset, asset management and the asset management system.

More about ISO 55000

ISO 55000 is a set of three standards or documents, issued by the International Organization for Standardization released its first series of standards on asset management in January 2014. These three documents are:

  • ISO 55000:2014
    Asset management – Overview, principles and terminology
  • ISO 55001:2014
    Asset management – Management systems – Requirements
  • ISO 55002:2014
    Asset management – Management systems – Guidelines for the application of ISO 55001

Benefits of asset management

Asset management enables an organization to realize value from assets in the achievement of its organizational objectives where as it supports the realization of value while balancing financial, environmental and social costs, risk, quality of service and performance related to assets.

  • Improved financial performance
  • Improved asset investment decisions
  • Managed risk
  • Improved services and outputs
  • Demonstrated social responsibility and compliance
  • Improved organizational sustainability
  • Improved efficiency and effectiveness

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