‘An Anatomy of Asset Management Version 3 December 2015, 9 Glossary This Glossary does not include all terms used within the Anatomy. Some terms are explained in the body of the text. 150 55000 contains definitions for some terms relating to asset management. A number of these are included in this Giossary, as the definitions and their associated notes aid understanding (where more clarification is provided than within the Anatomy), Where text within a definition is in bold, this identifies that the term is defined elsewhere in the Glossary. asset asset life asset ‘management asset ‘management plan asset ‘management Item, thing or entity that has potential or actual value to an organization, Notes: (1) Value can be tangible or intangible, financial or non-financial, and includes consideration of rks and liabilities. It can be positive Or negative at offerent stages of the asset life. (2) Physical assets usually refer to equipment, inventory and properties owned by the organization. Physical assets are the opposite of intangible assets, which ‘are non-physical assets such as leases, brands, digital assets, use rights, licences, intelectual property rights, reputation or agreements. @)A grouping of assets referred to as an asset system could also be considered as an asset. period from asset creatlon (o asset enc-of We ‘Coordinated activity of an organization to realize value from assets. Notes: 1. Realization of value wil normally involve a balancing of costs, risks ‘opportunities and performance benefit: 2, Activity can also refer to the application of the elements of the asset ‘management system. 3. The term “activity” has a broad meaning and can include, for example, the ‘approach, the planning, the plans and their implementation, Documented information that specifi the activities, resources and timescales required for an individual asset, or @ grouping of asses, to achieve the organization's asset management objectives. Notes: (1) The grouping of assets may be by asset type, asset class, asset system or ‘azzet portfolio 2) An asset management plan is derived from the strategic asset management plan. (@) An asset management plan may be contained in, ‘or may be subsidiary plan of, the strategic ‘asset management plan. Management system for asset management whose function isto estabish the asset management policy and asset management ‘objectives. ‘Note: The asset management system is a subset of asset management. (© Coy he state of Ase Magee 205, Al is eave Iso '55000:2014 e2n 150 55000:2014 @22 150 35000:2014 @3an Iso 55000:2014 633) 150 55000:2014 G43) 7asset ‘management strategy {also refer to definition for the SAMP) asset portfolio asset system. asset type capability critical asset effectiveness 78 ‘An Anatomy of Asset Management Version 3 December 2015 long-term optimized approach to management ofthe assets, derve from, and consistent with, the organizational strategic plan and the asset management policy Notes: (1) The asset management strategy converts the objectives of the organizational strategic plan and the asset management policy into a high-level, long-term action plan for the assets andor asset system(s, the aset portfolios andor the aset management system, (2) The high-eve, long-term action plans fo the asets and the asset management ‘objectives ae normaly the outputs of the asset management strategy. These ‘elements together form the basis for developing more specific and detailed asset ‘management plan) Assets that are within the scope of the asset management system. Notes: (1) pontotio is typically established and assigned for managerial control purposes. Portfolios for physical hardware might be defined by category (e.g. plant, ‘equipment, to's, land). Software portfolios might be defined by software ‘publisher, or by platform (e.g. PC, server, mainframe). (@) Anasset management system can encompass multiple asset portfolios. Where multiple asset portalias and asset managerrent systems are employed, assat ‘management activities should be coordinated between the portfolios and systems. Set of assets that interact or are interrelated, ‘grouping of assets having common characteristics that distinguish those assets as a ‘group or class EMPLE Physical cxeets, informotion assets, intongible azsets, critical assets, ‘enabling assets, near assets, information and communications technology (ICT) assets, infrastructure assets, moveable asses. - measure of capacity and the ability of an entity (yster, ‘person or organization) to achieve its objectives Note: ‘Asset management capabilities include processes, resources, competences and technologies to enable the effective and efficient development and delivery of ‘asset management plans and asset life activities, and their continual improvement. ability to apply knowledge and skills to achieve intended results ‘asset having potential to significantly impac: on the achievement ofthe ‘organization's objectives Notes: (1) Assets can be safety-critical, environment-rtical or performance-critical and ‘can rolate to legal, regulatory or statutory requirements. 2) Gritical assets can refer to those assets necessary to provide services to critical customers (G) Asset systems can be distinguished as being critical in @ similar manner to ‘individual assets ‘extent to which planned activites ae realized and planned results achieved Failure Mode and Effects Analysis~ A step-by-step approach for identifying ‘potential flues of an asset, or process, and analysing the consequences of the fellures, PAS $5-1:2008 69) 15055000:2014 @25) 150 55000.2014 e286) 150 55000-2014 aan 15055000:2014 @12) 150 55000:2014 @13) 150 55000.2014 @28) 150 55000-2014 @17) |s0 55000:2014 G26) © Copii Theta of Ast Management 2015, A gs eee,fn Anatomy of Ast Management Version 3 Decener2015 AAA GAAP incident level of ‘management system objective Generally Accepted Accounting Principles. A set of rules, conventions, standards, ard procedures for reporting financial information, as established by the US Financial Accounting Standards Board (FASB). International Financial Reporting Standards btiptwoweits.o7g Guidelines and rules set by the Intemational Accounting Standards Board (ASB) ‘that companies and organzations can follow when compiling financial statements, The creation of international standards allows investors, ‘organizations and governments to compare the IFRS-supported financial statements. All sted EU companies have been required to use IFRS since 2005. Unplanned event or occurrence resulting in damage or other loss 180 55000:2014 e18) parameters, ot combination of parameters, which reflect socal, political, 180 55000-2014 ‘environmental and economic outcomes that the organization delivers, 36) Note: The parameters can include safety, customer satisfaction, quality, quantity, capacity, relabiliy, responsiveness, environmental acceptability, cost and avaiatity, set of interelated or interacting elements of an organization to estabiish 180 $5000:2014 policies and objectives and processes to achieve thase objectives 42) Notes: (1) A management system can address a single discipline or several disciplines. (2) The system elements include the organization's structure, roles and responsibtilies, planning, operation, ele. {G)The scope of a management system may include the whole of the ‘organization, specific and identified functions of the organization, specific ‘and identified sections of the organization, or one or more functions across a 9°0up of organizations. determining the status of a system, a processor an activity 150 55000:2014 Notes: e193) (1) To determine the status, there may be a need to check, supervise or caticaly observe. (2) Fer the purposes of asset management, monitering may also refer to determining the status of an asset. This is typically refered to as “condition ‘monitoting” or “performance monitoring” Result to be achieved. 180 $5000:2014 Notes: @.1.12) (1) An objective can be strategic, tactical or operational. (2) Objectives can relate to afferent alscipines (such as financial, health and Zafety, and erwiranmental goals) and can apply at different levels ouch az strategic, organization-wide, project, product and process). (3) An objective can be expressed in other ways, eg as an intended outcome, {@ purpose, an operational criterion, an asset management objective or by the use of other words with simitar meaning (e.g. aim, goal, or target) (A) In the context of asset management systems, asset management ‘objectives are set by the organization, consistent with the organizational ‘objectives and asset management policy, to achieve specific measurable results. (© Coy he state of Ase Magee 205, Al is eave 73‘organizational objective performance policy Property, Plant and Equipment 80 ‘An Anatomy of Asset Management Version 3 December 2015 ‘Achieve by a quantitative or qualitative method, as appropriate, the best value compromise between conflicting factors such as performance, costs and, retained risk within any non-negotiable constraint. documented information that specifies the programmes to achieve the organizational objectives Notes: (1) ISO 55000 uses the term organizational plan (2) PAS 55 uses the term organizational strategic plan (OSP). (8) The terms mean the same. This term OSP is used in places in the ‘Anatomy and other documentation produced by the (AM. overarching objective that sets the context and direction for an organization's actoities Note: Organizational objectives are established through the strategic level planning activities of the organization, ‘make an arrangement where an external organization performs part of an organization's function or pracess Note: ‘An external organization s outside the scope of the management system, although the outsourced function er process is within the scope ifits activities influence the effectiveness of the asset management system. ‘measureable result Notes: (1) Performance can relate either to quantitative or qualitative findings. (2) Performance can relate to the management of activities, processes, producls (including services, systems or organizations. (9) For the purposes of asset management, performance can relate to assets in their ablity to ful requirements or objectives. intentions and direction of an organization as formally expressed by is top management Process Safty is a blend of engineering and management skills focused on preventing catastrophic accidents, particulary explosions fires, and toxic releases, associated with the use of chemicas and petroleum products, There are 2 commonly used definitions for a project: Unique process consisting of a set of co-ordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including constraints of time, cost and resources ‘A temporary endeavour undertaken to create @ unique Product or service, ‘According to International Accounting Standard 16 (AS16), “Property, Plant and Equipment” comprise tangible assets held by an entity for use in the production (or supply of goods or services, for rental to others, of for administrative purposes that ate expected to be used for more than one period. Depending on the applicable financial reporting framework, another definition of "Property, Plant and Equipment” might be appropriate. PAS 55-1:2008 B23) Iso $5000:2014 @1.15) 150 '55000:2014 a1 Iso $5000:2014 @1.16) 150 '55000:2014 1.17 Iso $5000:2014 1.18) Centre for Chemical Process Safety (American Institute of Chemical Engineers) so 10006:2003 Bs Project ‘management Institute (PM Body ‘of Knowledge, Section 1.2) Intemational ‘Accounting Standard 16 taste) © Copii Theta of Ast Management 2015, A gs eee,‘An Anatomy of Asset Management Version 3 December 2015, stakeholder asset management plan (SAMP) (also refer to definition for asset ‘management strategy) ‘Sustainable Effect of uncertainty on objectives. Notes: (1) An effect is a deviation from the expected ~ postive and/or negative. @) Objectives can relate to different disciplines (such os financial, health and safety, and environmental goats) and con apply at different levels (such as strategic, organization-wide, project, product and process) ) Rsk is often charactenzed by reference to potential “events” (as defined in 180 Guide 73:2009, 3.5 1.3) and “consequences” (as defined in ISO Guide 73:2009, 3.6.1.3), or a combination of these. @) Rsk is often expressed in terms of a combination of the consequences of an event (including changes in circumstances) and the associated “tikelhood” SO Guide 73:2009, 3.6.1.1) of occurrence (©) Uncertainty isthe state, even partial, of deficiency of information related to, understanding or knowledge of, an event, its consequence, or litelihood. person or organization that can affect, be affected by, or perceive themseWves to be affected by a decision or activity Note: ‘A “stakeholder” can so be refered to as an “interested party’ documented information that specifies how organizational objectives are to be converted into asset management objectives, the approach for developing asset management plans, and the role of the asset management system in supporting achievement of the asset management objectives Notes (1) Asstrategic asset management plan is derived fram the organizational (strategic) plan. (@) Asstrategic asset management plan may be contained in, or may be a subsidiary plan of, the organzational plan, ‘Achieving oF retaining an optimum compromise between performance, costs and risks aver the Life Cycle, whilst avidng adverse long-term impacts to the ‘organization from short-term decisions. “a set of activities that an organization canes aut to ereate value for its customers” (© Coy he state of Ase Magee 205, Al is eave 10 Guide 73:2009 ay 's0 $5000:2014 @.1.22) 10 $5000:2014 32) PAS 55-1:2008 a2) Porter, Michael E, “competitive Advantage: (Greatng ard sustaining Superior Peformance”. 1985, a1‘An Anatomy of Asset Management Version 3 December 2015 mt wens oneepe rier yaar MRM TS 1 va SUE pHEMT Shope aS tO eS Tas “a EE S| er ‘vse me sa Pas GHAI EY TeRREP aN TG ora Ei ioe 1008s Osi ‘y102"10055 081 yosesnepaxn oy dew saofans GE a MoH vv xipuaddy OL (© Copy The ratte Ast anagaret 25, A igh eve