A Practical Approach to Implementing ISO 55001 Asset Management System

Organisations need a definite Asset Management System (AMS) because it gives direction to their management of assets which include both tangible and intangible assets. It is needed more to improve the financial performance and sustainability of the organisation by enabling them to make informed decisions on asset investment. The ISO 55001 certification is the verification mark or proof that an organisation has a structured and effective AMS which works based on some established policies and objectives regarding their asset management.  The AMS enforces processes and practices that are helpful in controlling their assets in accordance with their functions and probable risks. 

The ISO 55001 standard not only provides a structured framework for asset management, but it also benchmarks the organisation in the industry for its asset sustainability and efficiency. Before knowing how to implement the ISO-based AMS in your organisation, know the benefits that it can deliver to your business long term besides improving your financial performance.

Potential Benefits of Implementing ISO 55001 based AMS

• Managed risks and reduction in costs of ownerships of assets
• Improved service and products due to optimal use of assets
• Demonstration of social responsibility and compliance
• Increase in corporate reputation and competitiveness
• Increase in sustainability and opportunities for growth

While these benefits might compel you to implement the ISO 55001 AMS in your organisation, you should first know what the key role or function of the AMS is.

Functions of an Asset Management System

Before starting your journey of AMS implementation, you should be aware of the functions or role of the AMS. You can structure the system and formulate an asset management policy based on them.

• Irrespective of the type of fixed assets an organisation possesses, preservation of those assets throughout their lifecycle is the first important function of the AMS. It should work to maximise their lifecycle, which starts from the acquisition stage and ends with the disposal. In between is the usage time of the assets during which it performs its allocated functions and adds value to the business. The AMS must work to improve their usage life/active life with routine maintenance and inspection so that maximum value is created for the business.
• The AMS must be also responsible for inventory management. Inventories include the products in stock, property or buildings, and other goods stored in warehouses. The AMS should help in tracking, supervising, and controlling all inventories from a single place. It makes the stock levels of inventory visible all the time so you know which products or goods need to be purchased or reordered.
• The AMS should enable organisations to maintain their assets so that they do not deplete in value or become less functional. It should help you to plan routine inspections to identify risks or any deterioration in the assets. This is necessary to prevent costly downtime in business operations and eventually, any loss in the asset value.
• The AMS should assist in the maintenance of heavy physical assets such as buildings, machinery, and other infrastructure. Heavy maintenance involves major tasks like repairs, refurbishments, and renewals, depending on the state of the asset. While significant costs are associated with each of these maintenance tasks, it requires prior planning and strategic planning of expenditures. An AMS can help in classifying the assets and determining the maintenance tasks associated with each so that your organisation can allocate the expenditure accordingly.

While these are the key functions of an AMS that assure every type of asset are well protected and managed for improved performance, let’s get into the implementation process of the ISO 55001 AMS.

Your Journey to ISO 55001 Implementation

The road to implementing the ISO 55001 based AMS is simple if you properly understand its structure and functions. To get it certified with the standard, you need to enhance your current AMS to incorporate all the requirements of the ISO 55001 standard.

Here is what you need to do:

1. Understand the standard’s requirements and find out what is missing in your current AMS through a gap analysis. Get a planned approach or hire a consultancy that can help you implement the ISO 55001 by closing the gaps.
2. Help everyone in the organisation understand the requirements of ISO 55001 and train them to adopt the practices and processes defined by them.
3. Perform an internal audit or a certification readiness assessment to know if the AMS is compliant with ISO 55001 as well as effective in managing the assets.
4. Contact a registrar/certification body and celebrate your certification success after passing the external certification audit and getting the ISO 55001 certificate.

Key Takeaway!

Achieving the ISO 55001 certification is crucial for organisations, irrespective of the type of assets or amount of assets had. It standardises the asset management practices in an organisation and increases the life of its assets. With an increased lifetime of the assets, an organisation can save significant costs and improve financial reliability. Without the AMS, it is impossible to proactively manage the assets and prevent the risks or degradation of assets. Thus, it would cost money for your organisation and affect the overall performance or output.