ISO14001 | Veracity Asset Services Inc

Published in 2014 by the International Standards Organization (ISO), ISO 55000 focuses on asset management of any types of assets, and especially physical assets.

Asset Management has become essential for companies to improve their organization management and financial health. According to John Woodhouse, UK Principal Export, ISO PC251 Committee (developing ISO 55000), an asset management system is a “framework of control, directional alignment, cross-disciplinary collaboration, optimization and continual improvement”. It is not a piece of software, but a set of guidelines that will help you build an efficient asset management system.

This standard “specifies the requirements for the establishment, implementation, maintenance and improvement of a management system for asset management” (SAM), and is referred as an “asset management system”. It outlines the approach an organization should adopt to implement a SAM, step by step and taking into account factors across departments, including the life cycle of assets.

The ISO 55000 Standards for Asset Management are developed in 3 documents: ISO 55000, ISO 55001, ISO 55002. This is the first international standard for asset management.

It is intended for people involved in asset management systems (establishment, implementation, maintenance and its improvement) and activities, and people in charge of assessing the systems.

Scope

SAM has 4 components:

Asset management policy
Asset management objectives
Strategic asset management plan and portfolios
Asset management plans

ISO 55000 focuses on the following factors:

Human Resources:
- Structure and responsibilities
- Leadership
- Skills
- Cross-disciplinary teamwork
Risk Management:
- Asset criticality and risk level
- Asset health
- Risk-based decision-making
Information:
- Trustworthy asset management record
- Information management systems
- Work & resource planning and management systems

*PDCA : Plan, do, check, act

Have you implement a system of asset management? Are you thinking of it? Share your experience with us!

Go further:

If you would like to implement and get certified in ISO55000, find information here.

Visit the Institute of Asset Management website: www.theiam.org

Canadian Asset Managers Network: http://www.cnam.ca/

Sources:

http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1813

https://www.iso.org/obp/ui/#iso:std:iso:55001:ed-1:v1:en

http://www.lce.com/Ten_Things_to_Know_about_ISO_55000_the_International_Standard_for_Asset_Management_562-item.html

ISO 55000 White Paper, John Woodhouse, UK Principal Export, ISO PC251 Committee (developing ISO 55000) (link) and his presentation: http://vision-aeam.com/wp-content/uploads/2014/04/3-1-Brief-intro-to-ISO55000.pdf (February 2014)

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This blog post highlights how supply chain, new ISO14001 and sustainability are linked.

The article “ISO14001 Revisions – An End To Box-Ticking Culture For Sustainable Procurement?” by Mark Plant, CEO of Ecodesk, highlights the new standard ISO14001, which is to be drafted this year and released in 2015. What will be the impact on companies and their sustainability practices?

For a short reminder, the ISO 14000 standard system focuses on environmental management. The International Organization for Standardization defines it as “practical tools for companies and organizations looking to identify and control their environmental impact and constantly improve their environmental performance.” The main goal is to help companies “effectively measure and reduce their environmental footprint”.

ISO standards are not compulsory at all, but it is an excellent sign of good practices and a requirement for most large tenders. Large companies are more likely to go through the ISO certification as they are expected to be leaders in these good practices, toward their customers, suppliers and societal partners.

What are the goals of ISO14001?

Improves business performance through rational use of resources and processes
Reduces raw material usage, waste generation and disposal costs
Lowers energy consumption
Fosters optimal use of recoverable resources

Although it sounds very theoretical, these standards have shaped numerous sustainability policies and practices.

Companies in the following sectors will be more likely to adopt ISO14001:

Waste management
Heavy machinery
Petrochemical industry
Agro- industry
Pharmaceutical and medical sectors

Companies will have to improve their “sustainable procurement strategy”, as mentioned by Mark Plant, “a set of environmental procurement requirements will have to be set and communicated to the supply chain.”

Taking into account environmental aspects (carbon footprint, type of materials, hazardous waste management) becomes a key factor in implementing and maintaining your supply chain, i.e. acquiring goods or services at the best possible cost in terms of quantity, quality, location and time.

How do we link sustainability, supply chain and ISO14001?

We often only think of the supply chain as a one-way path. Nevertheless, ISO14001 reinforces the importance of thinking about the other hidden side of the value chain. What happens to a company’s surplus? Should it end up in a laydown yard or be sent to a landfill?

Surplus asset management, also called “investment recovery” by practitioners, meets the goals of ISO14001, and should be practices complementary to your procurement program.

ISO14001	Managing your surplus assets
Improve business performance through rational use of resources and processes	Identify assets and recover the highest value of idle items
Reduce raw material usage, waste generation and disposal costs	Send materials to raw material streams through scrapping and recycling
Lower energy consumption	Buying second-hand assets saves on transportation and manufacturing new units
Foster optimal use of recoverable resources	Reusing and redeploying avoid manufacturing and buying new units

We can also add to this chart that the investment recovery process provides a full audit trail, required by any ISO standard, mitigates risks and reduce corporate exposure to environmental liabilities.

“Essentially ISO14001 is an opportunity to put in place value chain processes that can have a tangible benefit to the business but the hurdles to jump are higher and for any businesses not prepared to take supply chain sustainability seriously, the road to accreditation could also be a very long one” said Mark Plant. You can reach sustainability by also managing your surplus assets.

Go further with:

Investment Recovery: http://en.wikipedia.org/wiki/Asset_recovery

Sustainability, Investment Recovery and Supply Chain: https://veracityamg.wordpress.com/2014/05/22/article-highlight-sustainability-investment-recovery-and-supply-chain/

Rejuvenating equipment: an alternative to buying new: https://veracityamg.wordpress.com/2014/05/14/rejuvenating-equipment-an-alternative-to-buying-new/

ISO14001: http://www.iso.org/iso/home/standards/management-standards/iso14000.htm

http://www.iso.org/iso/ps-pub200002.pdf

The article “ISO14001 Revisions – An End To Box-Ticking Culture For Sustainable Procurement?” by Mark Plant: http://www.procurementleaders.com/blog/my-blog–guest-blog/iso14001-revisions—an-end-to-box-ticking-culture-for-sustainable-procurement

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