Topics

 Introduction
 Physical Asset Management (PAM)
 International Standards
 Digital transformation
 Asset performance management (APM)
 Smart connected assets
 Digitalization & Asset Lifecycle Management
 Summary
Introduction
Asset(s)
Any item of economic value owned by an individual or corporation.

Asset Management
Systematic and coordinated activities and practices through which an
organization optimally and sustainably manages its assets and asset systems,
their associated performance, risks and expenditures over their life cycles for
the purpose of achieving its organizational strategic plan.

Physical Asset(s)
Plant, machinery, property, buildings, vehicles and other items that have a
distinct value to the organization.
 Asset Management
 An organization’s top management, employees and stakeholders should
implement planning, control activities and monitoring activities, to exploit
opportunities and to reduce risks to an acceptable level.

 Asset management involves the balancing of costs, opportunities and risks

against the desired performance of assets, to achieve the organizational
objectives. The balancing might need to be considered over different
timeframes.

 Asset management translates the organization’s objectives into asset-related

decisions, plans and activities, using a risk based approach.
 Physical Asset Management (PAM)
PAM places the physical asset at the Centre of the business process but considers the relationships with, and
interfaces between, the financial, human, information and intangible assets (e.g. reputation) of the business

Vital context: business objectives, policies, regulation,

performance requirements, risk management Scope of PAM

Important interface: motivation, communication, roles and

responsibilities, knowledge, experience, leadership, teamwork

Important interface: life cycle

costs, capital investment criteria,
operating costs, value of asset
performance

Important interface: reputation, image, morale, constraints, social impact

Important interface: condition, performance, activities, costs an opportunities

Need for an asset management system
 Management of physical assets is complex and involves careful consideration of the
trade-offs between performance, cost and risk over all stages of the assets’ life cycles
 An asset management system is vital for organizations that are dependent on the
function and performance of their physical assets
 There are different levels at which assets can be identified and managed – ranging from
discrete equipment items or components to complex functional systems
Physical Asset life cycle
 Organization deliver its strategic objectives through managing its assets over
their whole life cycles.
 Asset Management system cover the life cycle management of the assets that
are core to an organization.

Create/ Renewal
O&M Dispose
Acquire strategy

appropriate assets Best O&M practices adoption of optimal decommissioning

to acquire or create renewal and/or disposal
in the first place

Optimize life cycle activities

Physical Asset Management benefits
The principal benefits of optimized life cycle asset management, in no particular order,
include:
 enhanced customer satisfaction
 improved health, safety and environmental
 optimized return on investment and/or growth
 long-term planning, confidence and performance sustainability
 improved risk management and corporate governance
Need for The Standard
 Risk awareness has become a very high concern among business executives and
government officials.
 As emerging economies develop more rigorous business practices to help manage
growth, standards around how organizations manage their assets will support
international trade by leveling differences in how business is grown and
managed.
 The world has suffered from major industrial disasters, the financial crisis and
great recession, and continued global instability caused by civil unrest and
economic duress of certain nations
 There is a need for an element of stability and this standard intends to be a
leveling force for international trade
Asset Management Standard
 The international standards for Asset Management are based on
PAS 55-1:2008, Part 1: Specification for the optimized management of
physical assets and PAS 55-2:2008, Part 2: Guidelines for the Application of
PAS 55-1
 The three parts of the proposed ISO standard are:
 Asset management ISO-55000 : Overview, principles and terminology
 Asset management ISO-55001 : Requirements of ISO-55000
 Asset management ISO-55002: Guidelines on the application of ISO-
55000
Asset Management Standard
 The standard is expected to be promulgated by early 2014 and will be known as ISO
55000.

 The predecessors of ISO 55000 were ISO 9001 and ISO 14001.

 In the same way these other ISO standards have benefitted organizations across the
globe, ISO 55000 intends to help organizations generate value in the following
ways:
 Structure good asset management practices across a broad cross-section of
industry.
 Earn heightened investor confidence.
 Allow governments and regulators to have a level of understanding of how
organizations do business within their borders.
Digital transformation
Digital transformation means shifting to new production, business, and customer
engagement models and enabling unprecedented business possibilities
Digital Transformation
 Digital transformation, the industrial internet of things (IIoT), and smart
connected assets (SCA) have been prominent themes over the 4-5 years.

 The early adopters of this new paradigm can expect lower overall operations costs
thanks to improved asset reliability, longer asset life, and lower decommissioning
and disposal costs

 These enabling technologies and related transformational efforts are letting

organizations gain competitive advantages.
Asset management and digitization

 The publication in 2014 of a series of standards (ISO 55000) [1], closely

related to the erstwhile PAS 55000 [2], is proof of the growing interest in the
systemic approach to asset management
 Moreover, the industry's massive incorporation of digital technologies is
enabling and accelerating comprehensive asset management, which in turn
affords further capabilities.
 With the combination of these two points, Asset Management is transitioning
from EAM (Enterprise Asset Management) to APM (Asset Performance
Management)
Asset performance management (APM)
 Like manufacturing, asset performance management (APM) has evolved to
leverage the digital technology associated with Cloud, the Industrial Internet
of Things (IIoT), mobility, Big Data, and the associated analytics.
 This overall industrial shift has been referred to as both Industry 4.0 (or
Industrie 4.0) and Smart Manufacturing
Smart connected assets
 One of the strategic objectives of asset-
intensive organizations beginning to
pursue is smart connected assets.
 SCA as those assets a business uses to
produce and deliver its goods and
services that can sense and respond to
internal and external environments as
intelligent agents.
 For industries that rely on physical assets
to produce the goods and services they
deliver, smart connected assets (SCA) are
at the heart of digital transformation
efforts.
Digitalization & Asset Lifecycle Management
 For utility companies, transforming operations and systems with
digital technologies can create substantial value:
 A reduction in operating expenses of up to 25 percent, which can
translate into lower revenue requirements or higher profits.
 Performance gains of 20 to 40 percent in such areas as safety,
reliability, customer satisfaction, and regulatory compliance are
also achievable.
Summary
 While there is clearly no single way to harness the advantages that digital
technologies bring to the Asset Management process at energy facilities, we
nevertheless believe that they entail an opportunity to improve business for
entities operating in the sector, reducing operating costs and simplifying
adaptation to new requirements, enhancing flexibility, market anticipation
and invoking new business models.