Managing infrastructure often means managing conflicting drivers to meet the requirements of regulators, shareholders, customers and staff, whilst considering financial, risk, technical performance and sustainability factors/issues.
Many companies cannot demonstrate or assess how well asset management is being carried out to achieve the appropriate balance of these corporate objectives. PAS 55 provides a way for infrastructure managers to assess their own performance against a set of global criteria for asset management practice. This provides assurance that the policies and practices in place are appropriate and identifies areas that require attention when compared to the agreed industry standard.
So what is it?
PAS 55 is the British Standards Institution (BSI)’s publicly available specification (PAS) for the optimised management of physical assets. It provides clear definitions and a 28-point requirements specification for establishing and verifying an integrated, optimised and whole-life management system for all types of physical assets.
Now internationally recognised, PAS 55 is proving to be an essential, objective definition of what is required to:
- Demonstrate competence
- Establish improvement priorities
- Make better, clearer connections between strategic organisational plans and day-to-day work and asset realities
PAS 55 applies to any organisation – public or private, regulated or non-regulated – that is highly dependent on the effective management of physical infrastructure or equipment. It describes what must be done in planning and delivery, the integrated management of acquisition, creation operation, maintenance and disposal or renewal of assets. This approach provides the many generic “enablers” underpinning sustainable, optimised performance of an organisation.
PAS 55 is relevant to gas, electricity and water utilities, road, air and rail transport systems, public facilities, process, manufacturing and natural resource industries.
It is important for any organisations seeking to demonstrate a high level of professionalism in whole-of-life-cycle management of their physical assets.
It is also accompanied by a comprehensive Competencies Framework for asset managers.
The Institute of Asset Management (IAM), UK, has developed an endorsement scheme that recommends competent assessors and trains providers to provide assessment and other services. Only a small number of organisations have demonstrated the knowledge, experience and professional standards required to be endorsed as PAS55 assessors, asset management training providers or IAM Endorsed AM trainers.
SKM has trained auditors in its Newcastle-upon-Tyne, Adelaide, Brisbane and Auckland offices and an internal training system for PAS 55 auditing and assessment. Each auditor is not only trained in PAS 55, but is experienced in asset management policies, processes and systems in infrastructure organisations. These auditors complement our strategic consulting services to infrastructure clients.
How might PAS 55 help you?
With the aim of minimising the whole-of-life cost of assets, there may be other critical factors, such as risk, sustainability or business continuity, to be considered objectively in asset decision-making.
PAS 55 was developed to capture international consensus on the required good practice for the management of physical assets to meet corporate business objectives.
The benefits of an enterprise project and portfolio management solution include:
- Improving key financial and operational results, such as return on assets, operating margins and maintenance costs, by helping to keep vital equipment operating, reducing shutdown and turnaround times, matching resources to workload and improving the productivity of maintenance crews
- Improving scheduling and resource allocation for asset-intensive companies by providing a clear, high-level picture of the project status and/or being able to focus on detail and scheduling
- Integrating resource, scheduling, materials and financial information between enterprise resource planning and asset management information system solutions, enabling easier and more accurate project, portfolio, materials and resource management across the enterprise
- Reducing corporate and project risks and enabling critical delivery dates to be met
What SKM can do?
Appointed by the IAM as an endorsed assessor, SKM can undertake gap analyses and certification of an organisation’s asset management systems to PAS 55. This recognises both our corporate experience and the skills and experience of our professionals in asset management.
Our gap analysis process is aimed at companies that wish to improve their asset management processes and systems. These companies may require a formal assessment of their asset systems in the future, but wish to firstly identify areas of practices or processes that need improvement to achieve PAS 55 certification. SKM can provide the technical support and guidance to revise your systems and processes to build a robust asset management system to meet business objectives that will be suitable for later certification. The gap analysis process may also be used as a continuous improvement measure to identify areas for business improvement without the intention or need to seek certification.
For clients who require certification of asset management policies, systems and processes to PAS 55, SKM can undertake detailed, evidenced-based assessments of the maturity of these systems using the IAM PAS 55 Assessment Methodology (PAM). Where the required standards are achieved, SKM can issue certificates of compliance and provide ongoing compliance surveillance.
This new service complements our advisory consulting track record in the utility sector, both regulated and deregulated.
This article was published in SKM's achieve magazine - Issue One 2012. Click here to view the full magazine