ISO 55000 defines Asset management as the "coordinated activity of an organisation to realize value from assets". In turn, Assets are defined as follows: "An asset is an item, thing or entity that has potential or actual value to an organisation". This is deliberately wider than physical assets but these form an important focus for more organisations.
(NB there are important qualifying Notes to these definitions, which are set out in ISO 55000).
Asset Management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve the organisational objectives. This balancing might need to be considered over diffrerent timeframes.
Asset management also enables an organzation to examine the need for, and performance of, assets and asset systems at different levels. Additionally, it enables the application of analytical approaches towards managing an asset over the different stages of its life cycle (which can start with the conception of the need for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).
Asset Management is the art and science of making the right decisions and optimising the delivery of value. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.
We have produced a very readable (we think!) booklet: "Asset Management - an Anatomy". You and your colleagues can download this free of charge from our website www.theIAM.org/AMA (please download your own copies and do not pass them on!).
This introduces the whole discipline of asset management - as distinct from the Management Sustem, as implemented in an organisation. The focus of thie IAM is the professional development and recognition of competence and the Anatomy describes 39 'Subjects that form the basis of the Body of Knowledge with which a professional asset manager should become familiar.
The IAM will be gradually publishing documents that amplify and explain these Subjects in more detail: see Subject Specific Guidelines.
Introduction to Asset Management
An even shorter booklet is also available free of charge.
The IAM is delighted that the international community chose to recognize the use of BSI PAS 55:2008 as the base document by includin '55' in the numbering of the new ISO Suite (55000, 55001 and 55002). PAS 55 was first published in 2004 and became the default global standard for asset management over the following decade or so. It comes in two Parts: the Requirements, and the Guidance.
A significant improvement over the BSI PAS 55:2008 is that the ISO not only has the equivalent parts in ISO 55001/2 but also an Overview, explaining the principles of asset management. We strongly recommend that you read this Standard as well. In fact, the IAM only sells the wholy bundle of three because we believe that users need to read them all.
BS ISO 55000:2014 - Overview, principles and terminology
BS ISO 55001:2014 - Management systems - Requirements
BS ISO 55002:2014 - Management systems - Guidelines for the application of ISO 55001
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 organisation, can contribute tangible benefits and leverage opportunities.
Effective control and governance of assets by organisations is essential to realize value through managing risk and opportunity, in order to achieve the desired balance of cost, risk and performance. The regulatory and legislative environment in which organisations operate is increasingly challenging and the inherent risks that many assets present are constantly evolving.
Asset management translates the organisation's objectives into asset-related decisions, plans and activities, using a risk based approach.
The IAM first published PAS 55 through BSI in 2004 with the full process and quality controls of an ISO - but it was not officially a Standard (it is a Publicly Available Specification). However, it became the default global standard for asset management over the following decade or so.
It will be superseded on 15th January 2015 but will remain available via BSI and those organisations in the middle of implementation projects are likely to keep using it for the moment.
It was translated into Spanish, Portuguese, French and Chinese and, no doubt, unofficially into other tongues! Some people still find the original diagrams helpful and you can browse these - see below.
Because asset management is such a broad, integrating view of business, it is often best understood by a number of illustrations. Click here for useful Asset Management Diagrams and explanation of their meaning.