Enterprise Asset Management
Asset management standards
of excellence
With the economic repercussions of the 2016 UK EU referendum still unknown, it’s vital for organizations around
the world to prepare to withstand any future problems, securing business efficiencies wherever possible.
Enterprise asset management (EAM) programs provide one potential source of efficiency savings. With businesses
readily seeking to optimize their assets to maximize performance across the board, EAM programs can help
secure gains on the bottom line and create a vital competitive advantage.
2Enterprise Asset Management Industry Perspectives
3 Driving business action
3 Looking towards standard expansion
3 Getting management on board
4 Taking a stand—No more silos
4 Setting a global benchmark
5 Navigating external communications
5 Improving the bottom line
Table of Contents
3Enterprise Asset Management Industry Perspectives
Driving business action
Enterprise Asset Management (EAM) programs are
instrumental in driving business action. EAM programs
can maximize not only the availability, but also the
reliability and performance of assets, minimizing that
all-important total cost of ownership. But, to be truly
effective, asset management strategies must be
continually reviewed and evaluated, taking into
consideration not only internal change, but external
factors. More businesses are waking up to the fact
that asset management relies upon the
standardization of practices and processes to be
successful. These businesses are adopting ISO
standards to help drive the adoption and
effectiveness of asset management programs.
Looking towards
standard expansion
The most widely adopted standard for asset
management is the ISO 55000 series. Many
businesses have adopted ISO 55000 because they
recognize the importance of standardizing the
management of their assets and asset data. This is
closely followed by ISO 50001, a standard that sets
out best practices for energy utilization through the
establishment of a dedicated energy management
system. It involves creating a policy, setting targets,
and using data to gain insights, make decisions, and
measure energy performance against these targets,
with a view to continual improvement.
But some businesses—for now mostly those who are
running expensive assets in uptime-critical industries,
such as process manufacturing, power generation and
oil and gas—have started to adopt ISO 14224, a
standard that originates from the oil and gas industry,
but is increasingly relevant for other industries
operating against an ever-more-globalized, 24/7
business landscape.
ISO 14224 calls for organizations to establish a
systematic and reliable process for collecting and
exchanging equipment reliability and maintenance
data, facilitating the exchange of information between
parties and helping to shape a pragmatic and effective
asset management program.
Ultimately, ISO standards in asset management are
intended to prevent loss of revenue, as well as
damage to people and the environment. However, as
the extended enterprise becomes more global, there
are more practical and mission-critical reasons why
organizations would want to standardize their asset
management programs. A few reasons could include:
increasingly complex supply chains, the prevalence of
Big Data, the factory of the future concept, and
increased automation.
Getting management
on board
Traditionally, operational decisions have been made
at the facility level, whereas strategic and financial
calls have been the domain of the executive team.
This disconnect can result in board-level neglect of
asset management, as it can be viewed as a
shop-floor issue. In reality, without buy-in from senior
managers, organizations cannot realize the significant
cost savings they can make with an effective asset
management program. Asset management
engagement from top down is crucial.
The adoption of ISO standards for asset management
facilitates that vital boardroom focus, putting
accountability and overall responsibility for effective
asset management into the hands of senior managers.
It also puts the framework in place to highlight the very
real financial and operational gains to be made via an
optimized asset management program. A robust asset
management program can help businesses better
align manpower, equipment, and resources to achieve
a competitive advantage.
4Enterprise Asset Management Industry Perspectives
Taking a stand—No
more silos
It’s not just board-level buy-in that standards can
ensure, but company-wide buy-in as well. More often
than not, EAM programs exist in silos, managed by
different individuals and departments. If
communications are lacking between all those
involved, it’s extremely difficult to optimize asset
management. ISO 55000 encourages better
communications within the organization when it
comes to asset management. ISO 14224 goes one
step further by facilitating the exchange of data
between all interested parties.
By removing the siloed approach, organizations can
gain a comprehensive, holistic view of asset integrity
for the entire business, aligning processes and
resources to put the emphasis on total business
impact as opposed to localized, short-term, often
competing priorities. Standards have the ability to
inject some much-needed discipline to asset
management, increasing cooperation among all areas
of the business, from board to shop floor, and
enabling organizations to make decisions in the best
interests of the business, in line with the company’s
strategic vision.
Setting a global benchmark
Standardization also has a crucial role to play when it
comes to optimizing asset management across
multiple sites. With standards in place, businesses can
set the benchmark for performance across all
locations, a welcome ability in an increasingly
globalized business world. As well as facilitating a
sound understanding of what is and isn’t working in
one site, the adoption of asset management
standards provides asset visibility across multiple
plants and locations. Benchmarking with other sites in
the organization can bring previously hidden asset
management insights to light and encourage best
practices across multiple plants and locations.
This benchmarking can help to de-risk a business as
well, both operationally and financially. An asset issue
in one location can be prevented from happening in
other sites. With an EAM program in place,
organizations can reduce the potential for failure or
mishap in other locations by mitigating a problem
before it happens. Similarly, when it comes to
suppliers, if there is an issue with one facility’s
supplier, asset management information can be used
as a company-wide benchmark, enabling a direct
comparison to be made with alternative suppliers
elsewhere in the business.
There is no
spreadsheet in
the world
capable of capturing, let alone processing, the
immense amounts of data involved in today’s
business operations.
5Enterprise Asset Management Industry Perspectives
Navigating external
communications
In addition to helping with internal communications,
asset management standards can help organizations
navigate communications with external agencies and
other interested parties. Having internationally
recognized standards in place can help convince
regulators, stakeholders, and customers that a
business is following asset management best
practices, as well as comprehensive standards, best
practices in safety, risk mitigation, reliability, and
profitable asset operations. Being able to demonstrate
how a business is using an ISO standard, highlighting
efficiencies brought about via standardization, can
also inspire confidence in investors, convincing them
that investments in asset maintenance and
management is money well spent.
Improving the bottom line
The need to adopt standards in a modern asset
management program has never been more pressing.
There is no spreadsheet in the world that is capable of
capturing, let alone processing, the immense amounts
of data involved in today’s business operations.
Adherence to the right standards can have a dramatic
and direct impact on the bottom line, keeping
businesses one step ahead of the competition and
standing them in good stead to weather future
economic storms.
Ruby
CMYK: 10, 100, 100, 2
CMYK Col r Palette
Graphite
CMYK: 25, 18, 12, 55
Coral
CMYK: 0, 65, 100, 0
Amber
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Jade
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Emerald
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Ruby
Light: 10, 100, 100, 2
Dark: 10, 100, 100, 22
Graphite
Light: 25, 18, 12, 55
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Coral
Light: 0, 65, 100, 0
Dark: 0, 65, 100, 20
Amber
Light: 0, 38, 100, 0
Dark: 0, 65, 100, 0
Citrine
Light: 2, 10, 100, 0
Dark: 0, 38, 100, 0
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Light: 42, 0, 100, 0
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Dark: 71, 0, 48, 20
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Light: 61, 0, 0, 0
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Azure
Light: 75, 20, 0, 0
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Cobalt
Light: 95, 45, 0, 0
Dark: 87, 70, 0, 0
Sapphire
Light: 87, 70, 0, 0
Dark: 87, 70, 0, 20
Amethyst
Light: 67, 90, 0, 0
Dark: 67, 90, 0, 20
Tourmaline
Light: 4, 94, 46, 0
Dark: 4, 94, 46, 20
Turquoise
CMYK: 71, 0, 48, 0
Topaz
CMYK: 61, 0, 0, 0
Azure
CMYK: 75, 20, 0, 0
Cobalt
CMYK: 95, 45, 0, 0
Sapphire
CMYK: 87, 70, 0, 0
Amethyst
CMYK: 67, 90, 0, 0
Tourmaline
CMYK: 4, 94, 46, 0
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Asset management standards of excellence
There's no spreadsheet in the world capable of capturing, let alone processing, the immense amounts of data involved in today's business operations. Discover how standards, combined with your EAM system, will result in optimal execution of your asset performance strategy.