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Abstract— In order to become competitive, organizations use Facing the need to survive in such complex situations,
consolidated management models that are based on organizations are challenged by a seemingly simple but vague
internationally recognized standards from diverse areas of question: "Where to start?" This question is exactly what
knowledge. In this paper, the standards ISO 55001:2014 (asset became important from a specific need of a large company in
management) and ISO 31000:2018 (risk management guidelines) the Brazilian electric energy sector, whose initiatives, despite the
are analyzed aiming to identify requirements for implementing the effort undertaken, have not yet succeeded to implement the asset
asset management process that comply with the regulation of the management process in a structured way.
Energy Transmission System. The methodology involves the use
of PROMETHEE II with application in a large company in the To answer this question, this paper proposes a methodology
Brazilian electricity sector. The resulting ranking of requirements, to guide the mentioned Brazilian organization to start
considering data based on experts’ knowledge and on the implementing the asset management in line with the sector’s
aggregation of their preferences, offers a prioritization of such regulation, based on experts’ knowledge and on the aggregation
requirements. The results are satisfactory in guiding the of their preferences. The methodology also includes the joint
organization as to where to start the implementation of the asset analysis of ISO 31000:2018 (guidelines to risk management),
management process. and ISO 55001:2014 (asset management).
Keywords— Asset Management; Risk Management; ISO This paper is organized into several sections. Besides the
55001:2014; ISO 31000:2018; Group Decision; PROMETHEE II. introduction, the methodology and a literature review are
detailed. Next, the application of the method is described,
I. INTRODUCTION followed by the results and the conclusion of this study.
Efficiency and sustainability are two indispensable
conditions to make organizations more valuable. Consolidated II. METHODOLOGY
management models are a powerful tool that, if properly tailored Following the guidelines of international standards is a
to a given context, increases the organization’s chances to fundamental move towards a successful asset management
become more efficient and sustainable, and therefore more implementation, which means that numerous requirements need
structured to achieve strategic objectives. According to [1], to be met. Due to human, financial, material, and other
some companies are discovering that a distinctive management constraints, organizations need to make decisions about which
model can itself be a key driver of competitiveness. requirements to implement with priority. The aggregation of
experts’ preferences in a group's decision-making process seems
Some of these consolidated management models are
to be quite appropriate, since they are the ones who better know
established by means of internationally recognized standards
the asset management process and the regulatory aspects to
from the most diverse areas of knowledge, such as: Quality
which the organization is obligated to adhere, and therefore the
management (ISO 9001:2015), Environmental Management
most appropriate professionals to sponsor a decision making on
(ISO 14001:2015), Risk Management (ISO 31000:2018), Asset
this issue.
Management (ISO 55001:2014), among others. These Standards
are usually about "what to do", and not about "how to do”. As Fig. 1 summarizes, this methodology proposes 8 steps.
Although some of them do not demand that organizations fulfill The steps are drawn by the question: 'Where to start?’ That is,
their requirements, they have been increasingly required by how can the organization implement an asset management
stakeholders. However, organizations are obligated to comply process that should adequately attend to the electric power
with specific regulations of the sector in which they perform. transmission sector regulation?
Many organizations recognize the importance of having In Step 1, some standards were identified as being strongly
their Asset Management process implemented to ensure value related to asset management. Among them two demonstrated
maximization of their assets and be compliant with regulations. extreme importance: ISO 55001:2014 and ISO 31000:2018. In
Nevertheless, managers do not know how, or have difficulties to Step 2 these standards were individually analyzed in detail. In
implement it, mainly due to the inherent complex and critical Step 3, a comparison of ISO 31000:2018 and ISO 55001:2014
nature of the asset management decisions [8]. was performed, aiming at the identification of common
requirements. Step 4 is composed by the problem's type, criteria
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Hence, an analytical aggregation procedure for decision-makers' phase, the preference index must be defined for each pair of
preferences or experts’ knowledge is important to support alternatives using the functions and the weights of the criteria
decisions. It ensures the rationality of those who are part of the that represent their relative importance. In other words, the
process, and the achievement of more efficient results for the preference index “is defined as a weighted average of
parties involved [7]. preferences of the individual criteria” [10].
In group decision, the difference between preference ( , )=
∑ i i( , )
aggregation and knowledge aggregation is clear. An analytical ∑ i
procedure for the former aims to obtain the preference structures The exploitation of the outranking relation consists of
of decision-makers who do not always seek the same results, defining the outgoing flow, ϕ+(a), and the incoming flow, ϕ -(a).
whereas an analytical procedure for aggregating knowledge of The former implies the intensity of preference of a over the other
experts involves the treatment of different perceptions alternatives, whereas the second is the opposite, which means
concerning the same phenomenon, as they have similar the intensity of all the alternatives over a.
purposes. Furthermore, [7] state a distinction between decision-
makers and experts’ roles. The former has the power to make ϕ+(a) =∑ ∈ ( , )
decisions, while the latter understands the system and its -
ϕ (a) =∑ ( , )
∈
environment.
where is the set of possible alternatives.
When aggregating preferences, the literature recognizes two
main approaches: input level aggregation and output level In the family PROMETHEE, [12] explains that
aggregation. Alternatives, criteria and weights are established PROMETHEE I represents a partial relation and PROMETHEE
previously in a group discussion for input aggregation. Whereas II the total preorder (complete ranking) by calculating the net
in the latter, only the alternatives are defined in consensus, as flow.
individual results are constructed by each member and then ϕ(a) = ϕ+(a) - ϕ-(a)
aggregated into a final collective group result that considers each
decision-maker as a different criterion. The criteria weights refer Consequently, a outranks bora is indifferent to b,
to the importance of the decision-maker in the group [10]. respectively, if:
ϕ(a) > ϕ(b)
E. The Multicriteria Method ϕ(a) = ϕ(b)
Among other multicriteria methods, the family
PROMETHEE (Preference Ranking Organization Method for IV. APPLICATION
Enrichment of Evaluations) has proved to be considerably
This study was applied to the asset management process of
present in empirical studies in the last years, as a great number
a Brazilian electric power generation and transmission
of papers have been written to great success [11]. This method
company. The following subsections contextualize it.
stands out for involving concepts that are easily understood by
decision-makers as they can build criteria that represent their A. Electric Power Transmission System and the Asset
notion of preference, besides it fixes a maximum number of two Management Process
parameters (preference and indifference) with real economical In Brazil, the electricity sector is regulated and supervised
interpretation [12]. by the Agência Nacional de Energia Elétrica – ANEEL
According to [13], PROMETHEE has the advantage of (National Electric Power Agency), an autarchy under a special
being clear, simple and stable. As an outranking method, regime linked to the Ministry of Mines and Energy, with mission
PROMETHEE does not “eliminate any alternative in pairwise to provide favorable conditions to develop the electric energy
comparison instead it puts the alternatives in an order according market by balancing interests between agents and benefits for
to criteria and decision maker preference” [11], thus it allows the society [14].
choice of the best alternative from the outranked set. This ability Regulation is defined as the intervention of the State in the
makes the method more powerful for different problem-solving country’s economic and social order, by controlling the
situations. PROMETHEE includes two main phases [13]: the provision of services through entities that execute and supervise
construction of an outranking relation, and the exploitation of them, ensuring the universalization of their services with the
this relation. During the first phase, a preference function must purpose to protect public interest. It also aims at maintaining the
be established for each criterion, representing the decision- economic and financial balance of contracts through the
maker’s preference for action a over an action b. Hence, the definition of tariff policies, which is one of the most relevant
intensity of the preference rises with the difference between the aspects of regulation, considering the need to ensure profitability
performance of the alternatives: for investors and economic viability for consumers [14].
F(a,b) = f[g(a) – g(b)] Structuring asset management process properly is essential to
prioritize investments and concentrate efforts on the most
The values are defined between 0 and 1. There are six types critical assets. This allows the organization to focus on the
of functions that could cover most of the cases: usual criterion, benefits that will bring the greatest gains, such as: improved
quasi-criterion, criterion with linear preference, level-criterion, financial performance, informed asset investment decisions,
criterion with linear preference and indifference area, and the managed risk, improved services and outputs, demonstrated
gaussian criteria. In case the problem has more than one social responsibility, demonstrated compliance, enhanced
criterion, it is possible to mix the functions [12]. In the second
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reputation, improved organizational sustainability, and
improved efficiency and effectiveness [3].
The Asset Management process includes the entire asset life
cycle, from their prospection, through acquisition, project,
construction, operation and maintenance, to immobilization/
demobilization and disposal, under the aegis of a strong and
mandatory regulation.
B. Asset Management versus Risk Management
The standard [4] “specifies the requirements for the
establishment, implementation, maintenance and improvement
of a management system for asset management, referred to as an
“asset management system”’. Hence, Fig. 2 describes that the
asset management system acts on the asset management process
aiming to maximize the value of the organization's assets.
Besides, the interference of risk management is outlined, as this Fig. 3. ISO 31000:2018 framework and process versus ISO 55001: 2014
Asset Management System. Source: the authors.
process is susceptive to uncertainties.
In the same way, ‘leadership’ in ISO 55001:2014 relates to
‘leadership & commitment’ and ‘design’ in ISO 31000:2018,
‘support’ in ISO 55001:2014 also relates to ‘design’ in ISO
31000:2018. Furthermore, the dimensions ‘planning’,
‘operation’, ‘performance evaluation’ and ‘improvement’ in
ISO 55001:2014 are completely related to the risk management
process. Conversely, some requirements were identified to be
specific for the implementation of the ISOs separately. For
instance, ‘implementation’, ‘evaluation’, and ‘improvement’ in
ISO 31000:2018 refer precisely to risk management framework,
and ‘improvement’ in ISO 55001:2014 refers to the asset
management as well as the asset management system itself. All
of these relationships are detailed in Table I, where RM, AM and
AMS are the abbreviation for risk management, asset
management and asset management system, respectively.
C. Problem type, Criteria and Method
Fig. 2: Asset Management Process supported by ISO 55000:2014 and ISO In Step 4, three definitions were performed: problem type,
31000:2018. Source: the authors
maturity and relevance criteria, and a multicriteria method for
The 3rd step of the methodology presents an analysis of the ordering group-decision’s choices. First, because of the
equivalences between asset management system [4] and the organization's resource constraints, it was necessary to prioritize
framework and process presented in risk management [6]. Both the requirements to establish the action plan for a future asset
management models complement each other when they are management process implementation. Moreover, due to the
instantiated in the same process, in this case, the asset complexity of such process, a prioritization based on a single
management process. Although the term ‘management model is point of view would be inappropriate, hence the need to
utilized in different contexts with different meanings, it is aggregate the experts' preferences.
understood as “the choice made by a company’s top executives
regarding how they define objectives, motivate effort, Next, two criteria were determined: ‘maturity’ and
coordinate activities and allocate resources; in other words, how ‘relevance’. Maturity criterion comprising the level of
they define the work of management” [1]. implementation of the requirement in the organization,
according to [4] and [6] or the equivalent practices in the
Other Standards identified in Step 1 detail specific sectors organization. That is, a lower maturity means that the
and assets, and they belong to relevant areas in asset requirement under analysis is little or not implemented in the
management such as the ones related to lifecycle cost, project organization, thus, there would be opportunities for the asset
management, quality management, terotechnology, among management process improvement. Relevance criterion
others. All of these standards together, although not being part representing the extent to which the requirement, if
of this study, ensure the consistent delivery of an asset implemented, contributes to meeting the specific regulation of
management process. It was observed, as depicted in Fig. 3, that the sector. That is, a greater relevance means that the
all the dimensions extracted from ISO 55001:2014 (‘context of requirement under analysis is relevant to meeting the Sector-
the organization’, ‘leadership’, ‘support’, ‘planning’, specific Regulation and would increase the possibility of the
‘operation’, ‘performance evaluation’ and ‘improvement’) are organization receive a fair reward.
related to the component ‘integration’ in ISO 31000:2018.
Then, as the expert's rationality was non-compensatory,
PROMETHEE II was applied either in the individual ranking of
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the requirements based on the preferences of each expert (as they preference usual function was applied for both criteria as the
define individually the weights of the criteria), or in ranking of answers were based in a 5-point Likert scale, becoming needless
the requirements as a group decision, considering the experts as to use preference and indifference thresholds.
criteria of the same importance. For this application, the
TABELA I RELATIONSHIP BETWEEN ISO 31000:2018 AND ISO 55001:2014
D. Questionnaire design and data colection ‘completely implemented’. Similarly, the answers for the
The questionnaire was designed with 29 requirements criterion ‘relevance’, expressing their knowledge in the
originated from the joint analysis of ISO 31000:2018 and ISO regulation’s sector, include ‘totally disagree’ to ‘totally agree’.
55001:2014 from the result of the Step 3 analysis. A 5-point The questionnaire was applied to four homogeneous experts in
Likert scale was elected to be used, as it performs better knowledge on the subject under study as showed in Table II.
considering reliability, validity, discriminating power and E. Promethee II application, Sensitivity Analysis and Results
respondent preferences [15].
Using PROMETHEE II, each requirement was considered
TABLE II CHARACTERISTICS OF THE EXPERTS as an alternative evaluated by the experts under both criteria.
KNOWLEDGE AREAS EXPERTS Then, each expert was considered as a criterion having the same
1 2 3 4 weight, in order to aggregate the individual rankings into a
Asset Operation and X X global one. The results found are showed in the GAIA plane in
Maintenance Fig. 4 and in Table III. The former aids with the visual
Asset Management Process X X X X understanding of the requirements’ performance of the group
Sector’s Regulation X X X X preference aggregation. The requirements are presented as
SOURCE: THE AUTHORS squares, the vectors are the criteria and the red axis (π) represents
their weighing. The solution neatness achieves 100%, indicating
The experts were asked to give weights to both criteria, that the information obtained in GAIA plane is reliable. The
expressing their preferences over their importance. The answers requirement L1 (Leadership 1) is oriented towards the direction
for criterion ‘maturity’, expressing their knowledge in the asset of π-axis, which is the best ranked option also viewed in Table
managing process, vary among ‘not implemented’ to III, while requirement S1 (Support 1), in the opposite direction,
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is the worst ranked. It is relevant to highlight that requirement importance. Thus, the sensitivity analysis was performed
L1 represents the commitment of top management with the asset considering equalized weights for maturity and relevance, even
management process, which is fundamental for the success of its though; the result showed a collective ranking with no
implementation. significant differences in the order of the requirements.
V. CONCLUSION
The objective of this paper was to contribute to a real
problem of a large Brazilian company. In order to answer the
question: "Where to start?”, that is, how could the organization
implement an asset management that would adequately attend to
the electric power transmission sector regulation, a methodology
was proposed to rank requirements based on a joint analysis of
ISO 55001:2014 and ISO 31000:2018, regarding two criteria:
maturity and relevance.
Although this proposal was instantiated in the asset
management process of the electric energy transmission system
Fig. 4: The Promethee Gaya plane analysis for the group of experts. of a Brazilian company, it can be applied in companies from
Source of basic data: Visual Promethee other sectors of the economy, presupposing the knowledge of
specific regulation by experts.
Analyzing the first ten positions in Table III, the two
prioritized dimensions, considering the context of the For future studies, other standards related to asset
organization studied, were Support and Operation (with three management shall be considered. Besides, an application of a
requirements each). From the result obtained, the organization sorting multicriteria to classify the requirements and the
will have important inputs available to establish the action plan development of a method to aggregate the individual sorting
for a future asset management process implementation. results in a group decision would allow a better decision-
making.
During the individual analysis, the results indicated diversity
among the preferences of the experts when judging the criteria
TABELA III PROMETHEE II REQUIREMENTS FINAL RANKING
1 Leadership1 0,3045 0,0536 0,2509 11 Evaluation1 0,217 0,1911 0,0259 21 Support7 0,2027 0,25 -0,0473
2 Support3 0,267 0,0911 0,1759 12 Context4 0,2277 0,2232 0,0045 22 Context3 0,2295 0,2821 -0,0527
3 Operation2 0,267 0,1187 0,1482 13 Evaluation2 0,2348 0,2366 -0,0018 23 Planning1 0,2188 0,2955 -0,0768
4 Framework1 0,267 0,1187 0,1482 14 Evaluation3 0,2348 0,2366 -0,0018 24 Context2 0,1991 0,2768 -0,0777
5 Support6 0,242 0,1161 0,1259 15 Framework2 0,2348 0,2366 -0,0018 25 Improvement3 0,1777 0,275 -0,0973
6 Support4 0,2348 0,1589 0,0759 16 Leadership2 0,2509 0,2687 -0,0179 26 Planning2 0,167 0,2696 -0,1027
7 Operation3 0,3009 0,225 0,0759 17 Improvement2 0,1973 0,2196 -0,0223 27 Support2 0,1786 0,325 -0,1464
8 Operation1 0,2295 0,1563 0,0732 18 Improvement1 0,217 0,2411 -0,0241 28 Support5 0,1688 0,3518 -0,1830
9 Planning3 0,2348 0,1821 0,0527 19 Leadership3 0,2045 0,2321 -0,0277 29 Support1 0,1045 0,3884 -0,2839
10 Context1 0,2241 0,1768 0,0473 20 Framework3 0,2295 0,2687 -0,0393
SOURCE: THE AUTHORS
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