ISO 55000 Series: Standards in Asset Management
The ISO 55000 series is comprised of the three standards in Asset Management, i.e. ISO 55000, ISO 55001 and ISO 55002. These three standards, when taken together provide a framework and guidelines for the formulation and implementation of an integrated and effective asset management system. The assets included in such a system are both tangible and intangible. These standards were developed over the course of several years, in order to create a universal standard in asset management systems.
Assets and the value realised from them lie at the core of what any organization, whether public or private, aims to deliver to its stakeholders. These assets include the physical, financial, human and intangible. Good asset management leads to the optimum value for money and the satisfaction of the expectations of stakeholders in the organization.
Asset management involves the optimization of the processes that surround the planning, selection, acquisition, development, utilization, maintenance and disposal or renewal of assets within the organization. Insights into asset management, can help a company to identify essential business practices and alignment activities that maximize performance benefits.
Every company seeks to ensure that the goods and services provided by their company meet the minimum requirements as per the legislation, in order to avoid incurring fines and penalties. However, rather than simply following the letter of the law, it is far more efficient to implement a strategic management system that uses a proactive, rather than reactive approach and ensures the delivery of returns on the investment in assets. This is the role that is played by the ISO 55000 asset management system.
Benefits of Implementing the ISO 55000
The ISO 55000 is an internationally recognized standard in asset management, and the implementation of its regulations and guidelines has numerous benefits to any company whether it operates in the public or private sectors. Some of the main benefits of implementation of the ISO 55000 are as follows
Better Market Standing
A company that is certified ISO 55000 compliant is seen to take its asset management seriously. Companies would see an increase in partnerships and the winning of tenders in the public sector and contracts in the private sector since it is seen as being well-run and credible and reduces the need for due diligence.
Better Risk Management
The ISO 55000 allows for the proper prioritization and pre-emptive handling of various risks and risk factors before they become an issue within the company through the understanding an analysis of data.
Better Management with Continuous Improvement
By demonstrating compliance, the ISO 55000 improves analysis and reporting which are key elements when conducting business. It also provides the foundation for improvements to be made consistently, from year to year.
Consistent Business Practices with less paperwork
Since the ISO 55000 is a universal standard it allows for the standardization of the asset management system throughout all levels and areas of a company’s business practices. This means that there is better inter-departmental communication and allows the business to function as a whole. It also gives employees a better understanding of their roles and goals. This in turn streamlines the processes of the company, enabling the generation of far less paperwork.
Reduced Product Problems and Lower Costs
The ISO 55000 is designed to help companies anticipate problems with the compliance of their product. This means that the problem is foreseen before it occurs and there are systems in place to correct these problems. This along with improved risk assessment can lower both the cost of production and the insurance premiums of the company.
The ISO 55000 encourages greater communication and transparency in workplace practices. This includes leadership and cross-disciplinary teamwork. Employees who work in well-planned and systematically managed environments show greater productivity and an increased sense of job security and satisfaction.
When implementing the ISO 55000, the guidelines are designed to align with existing systems within the company, streamlining their functioning. The ISO 55000 also leads to an improved ability to plan and project a company’s trajectory and growth.
The correct implementation of the ISO 55000 leads to an overall increase in productivity and risk management as well as compliance within a company. This in turn lowers the losses that are incurred in the settlement of claims and fines that can be levied against a poorly managed company. The benefits of compliance with the guidelines laid down by the ISO 55000 cannot be overstated.