Cover Your A$$ets. John L. Ross
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All kidding aside, there are tangible benefits for everyone from getting them on board and identifying their specific roles and responsibilities as they relate to developing a standard approach and training to conform to the stated practices. ISO 55000 states that the importance of an asset management system is that it is sustainable. In order to be sustainable, there has to be some assurances that the objectives of the organization are being met both effectively and efficiently. Isn’t that what most of us have been pleading for over the decades? This is our chance to do great things together as a plant, a company, and an organization.
Influencing Factors
There are a number of influencing factors regarding the organization’s operating environment, budget, and expectations from the stakeholders. All these are taken into consideration when we set up an asset management system and execute the required activities. We also monitor and take into account the environs of our particular situation by maintaining the system and being engaged in a process of continuous improvement to address risk and capture opportunities.
The governing idea behind the asset management standard is that the asset plan that is created by this structured and well-vetted approach essentially will translate the company’s goals and objectives into decisions, plans, and executable actions. This must be accomplished using a risk-based approach.
That last line should be a dog whistle to each of us to adopt a risk-based approach to asset decision making. It has been my experience that very few organizations actually have such a technique being utilized in their facilities. Keep in mind that:
Risk = Probability x Consequence
Risk is reduced by reducing probability (frequency) and/or consequence (severity). Figure 2-1 is an example of a risk matrix. Let this, or something similar, be a guiding element in all your decision making.
In clearer appreciation for this risk-based approach, ISO 55000 states that it is through the management of the risk, and the capture of opportunities that an organization can realize value in their assets and have a desired balance of cost-to-risk-to-performance.
Figure 2-1 A risk matrix
Adapted with permission by Marshall Institute, Inc.
The directive from this initial standard’s overview is that top management, employees, and stakeholders are enlisted into the effective management of the assets. Again, we are speaking of physical assets, but the standard is applicable to all forms of assets, as the company identifies them. The individuals and groups just mentioned are responsible for establishing and executing control activities, monitoring those activities and working to minimize risks against the asset losing value, and again, capitalizing on those opportunities that would increase the value. Such control activities include, but are not limited to processes and policies.
Let’s pause here and give this some deeper thought. “Top management” is required to implement planning control activities, monitor those activities, and reduce risks to an acceptable level. The standard purposefully keeps the definition of “top management” vague. It can mean the upper echelon of a plant staff or the C-suite executives of a corporation. The standard identifies top management as the highest person or people who has or have authority to direct and control the resources of the organization.
On the few lines that follow, list the ways your top management implements planning control activities to reduce risks:
What comes to mind is an executive leadership body that insists on reliability upgrades and maintenance enhancing preventive and corrective maintenance. They (the top brass) effectively manifest this insistence by requiring that production stop for maintenance activities and participate in all forms of operator care, or autonomous maintenance. This is not often the case. For implementation of the ISO 55000 standards, the top leadership often needs to change their view of the priorities.
The standard lays this requirement on everyone, even the employees. Repeat this exercise again. In the space provided, list the ways that the production supervisor might implement planning control activities to reduce risks:
In this example, I’m reminded of the production supervisor who insists that maintenance PMs be performed on time. Also, this would be a supervisor who diligently requires that operators keep their equipment clean and run their machinery properly. This supervisor is someone who is engaged in the process.
Here is a final thought for this section. The standard’s language quoted in an earlier paragraph mentioned that these actions are necessary to bring risks down to an “acceptable level.” When a standard calls out such a subjective phrase, it is contingent upon the leadership to define (in writing) what the acceptable level is. In this case, there is a need for a documented interpretation for “acceptable level.” We touched on this phrase in the previous chapter. At your location, what do you understand the phrase acceptable level of risk to mean? Record your thoughts here:
Fundamentals
To be effective, any standard, policy, or process has to have fundamental elements. Those elements must be present (meaning they exist, in writing), must be consistently deployed or executed, and must lead to a positive result. I have shared with many of my classes that: average x average x average does not equal world class. Neither, I say, does: average x world class x average. Fundamentals are foundational. A professional baseball player who cannot catch (a fundamental), will not be a very successful teammate nor have a long career in the majors.
The fundamentals as outlined in ISO 55000 include:
■ Value
■ Alignment
■ Leadership
■ Assurance
Further defining these fundamentals first requires an introduction to some key terms and phrases that are used throughout all three standards:
■ Organizational objectives
■ Life cycle management
■ Decision-making process
■ Stakeholders
■ Risk-based
■ Asset management system
Let’s look deeper into those four fundamentals.
VALUE
Assets, physical or otherwise, are the source of income for the company. Any asset should provide value to the