PAS-55, Impact and Support from Maximo Asset Management
Mary Gorczynski 1100006B54 firstname.lastname@example.org | | Tags:  asset-management tivoli ibmsoftware manufacturing pas-55 ibmontwitter service-management maximo eam industrial
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This is a blog posting from Eric Luyer, Market Manager for IBM Asset Management, Industrial Manufacturing.
As mentioned in my last blog, this time I want to focus on PAS-55, the newly adopted standard for asset management, especially for asset-intensive industries, like energy, utilities, process industry (oil, gas &chemicals), transportation or complex manufacturing or infrastructure industries. This standard sets down the generic principles of good practice asset management and provides more detailed guidance and information on how the principles of PAS-55 can be implemented in various industries or for example relate to asset lifecycle information, risk and quality management, decision support, etc.
Significant amounts of money and time are spent today of managing business-critical assets or complex asset structures each year. And there is still confusion about terminology and the wide variety of management approaches in use. In many cases these approaches serve well, but often they do not, sometimes resulting in high-profile failures. Think about the late 1980’s: the Piper Alpha disaster, recommendations on risk/safety management, the current challenges with BP’s deep sea drilling in the Gulf of Mexico and so on.
I like to quote John Woodhouse (IAM, UK) as he commented in one of his presentations: “What we also see in the market is that “optimized, integrated Asset Management” represents the sustained best mix of: asset care (i.e. maintenance and risk management) and asset exploitation (i.e. use of the asset to meet some corporate objective and/or achieve some performance benefit)”.
A multi-sector initiative in Europe, backed by the British Standards Institute has published PAS-55 – first in 2004 and later in 2008 with the updated version to clear the air a bit and defined what a sophisticated physical asset management system needs to include. It requires a life cycle view and optimal mixture of capital investments, operations, maintenance, resourcing, risks, performance and sustainability. This standard is now being adopted by industry regulators as a checklist of good governance (all electricity and gas distributors must be “PAS 55 certified” as from 2008). This new standard is the culmination of the latest thinking in terms of best practices in asset management systems. I see now PAS 55 is becoming internationally accepted as the industry standard for quality asset management. The standard acts as a valuable guideline for asset lifecycle management, quality control, risk and compliance.
PAS 55 defines Asset Management as “systematic & coordinated activities and practices through which an organization optimally manages its physical assets and their associated performance, risks and expenditures over their lifecycles for the purpose of achieving its organizational strategic plan.”
The factors that drive the need for good asset management are becoming more important and apparent. Asset risks are appearing more often on the boardroom agenda and there is more focus on regulatory compliance from governmental and industry institutions. Organizations are placing a clear emphasis on cost containment, price management, return on investment, and increased overall asset value. Also the bar is being raised by a worldwide interest in lean principles, asset management and asset performance. Many sectors are seeing increased expectations and actions around quality and service delivery as well as “green” initiatives.
On top of this, there is an increased complexity of assets, tools, and equipment as assets become more interconnected, instrumented, and intelligent.
The PAS-55 standard can benefit companies not only from the regulatory point of view, but also to help them gain competitive advantage by ensuring that they are effectively managing their assets. Using this standard methodology for comprehensive asset management can drive cost savings and service improvement. Other benefits of PAS-55 include:
As we all know Maximo Asset Management provides a single version of the truth for all asset-related information, a central place to define performance criteria and associated key performance indicator (KPI) measures as well as the identification of performance failure. Maximo Asset Management also supports both the concepts of “leading” indicators—where potential problems can be identified before they occur—and “lagging” indicators, where, for example, the analysis of past failures can indicate a decreasing performance trend.
Based on its extended functionality, Maximo Asset Management enables a natural alignment with PAS-55. The software provides capabilities and functionalities which allow capital asset-intensive industries to leverage the implementation of this standard in a much shorter timeframe..
I do want ask your attention to the LinkedIn group on PAS-55, where you follow interesting discussions around this topic. An interesting website is of the Institute of Asset Management.
Thanks for reading and hope you enjoyed it. Look forward to my next blog after the holiday season. With a fresh mind I will touch again on an interesting topic.