Possible (Probable!) ISO Asset Management Standards NPMA Chapter Presentation January 2011 This presentation is designed to raise awareness about the proposal for International Organization of Standards (ISO) Asset Management Standards. Oh, and during this presentation, interpret ‘assets’ as ‘physical assets’ – you know, what we call ‘property’. Yes, there is international discussion on our role names; are we Property Managers, or Asset Managers, or Facilities Managers? That debate continues, but mostly you’ll hear international communities refer to us as Asset Managers.

More and more, we are seeing business on an international scale, and different countries have different rules and regulations. Here is the cover for a United Kingdom Ministry of Defense Standard (DefStan) that is incorporated into contracts just as FAR 52.245-1 (June 2007) is in US Federal Contracts. It’s interesting to note that the UK DefStan 05-99 has pretty much the same requirements as FAR 52.240-1, but they are expressed in different terms.

The Institute of Asset Management (IAM) Let’s talk about how we got to this point. First, the Institute of Asset Management (The IAM) is a UK based (physical) asset management association, and could loosely be considered a counterpart to NPMA. As shown in the slide, the IAM noted in August 2010 that Project Committee (PC) 251 has been given the formal approval to further pursue an ISO Asset Management Standard. The next slide shows more information about the approval.

ISO authorises PC251 on Asset Management 10 August 2010 Presentation Title June 10, 2018 ISO authorises PC251 on Asset Management 10 August 2010 The Technical Management Board of ISO has recently authorised Project Committee 251 to develop an International Standard on Asset Management.   TECHNICAL MANAGEMENT BOARD RESOLUTION 101/2010 Establishment of a new PC on Asset management The Technical Management Board, establishes a Project Committee on Asset management and allocates the secretariat to BSI (United Kingdom). The next few slide will provide a bit more background. 6/10/2018 Speaker Name

Presentation Title June 10, 2018 Background The Institute of Asset Management (IAM) is a UK based asset management association. It’s ‘motto’ is: “the professional body for through-life management of physical assets”. Publishes ‘Assets Magazine’ Membership: 360 individuals and 64 corporate The IAM appears to concentrate at the corporate level, or even higher. For example, some of the corporate members represent infrastructure entities for an entire city or even country. 6/10/2018 Speaker Name

Presentation Title June 10, 2018 Background In 2004, IAM, through the British Standards Institute (BSI), published “Publicly Accepted Specifications” (PAS) for Asset Management: PAS 55-1:2008, Part 1: Specification for the optimized management of physical assets PAS 55-2:2008, Part 2: Guidelines for the Application of PAS 55-1 A “Publicly Accepted Specification” could be considered very similar to an “Industry Leading Practice”. If you would like a more comprehensive description of ‘publically accepted specifications’, look up the term in your favorite search engine. 6/10/2018 Speaker Name

Presentation Title June 10, 2018 Background BSI has proposed three international standards for Asset Management based on PAS 55-1 and 55-2: Asset management - Overview, principles and terminology Asset management – Requirements Asset management - Guidelines on the application of ISO ????? (where ????? represents the number to be applied to the "Requirements" standard) Based very much on PAS 55-1 and PAS 55-2, BSI has proposed three asset management standards to ISO. 6/10/2018 Speaker Name

Background International Organization of Standards (ISO): Presentation Title June 10, 2018 Background International Organization of Standards (ISO): Comprised of many nation members. Each member nation gets one vote ANSI votes for the US Consensus is not required; a 75% ‘approved’ vote is How does ISO work? The approval process for ISO differs from ASTM International’s in that every individual has a vote, and, ASTM requires that every negative vote be addressed and resolved before a standard can be approved. 6/10/2018 Speaker Name

Presentation Title June 10, 2018 NPMA Response The Council on Standards (COS), acting as the E53.90 Executive Subcommittee reviewed the proposed standards as well as PAS 55-1 and PAS 55-2. Findings are: They are fine documents High level, ‘consultant grade’ documents, do not get into a lot of specifics. Does not get into the level of detail that NPMA documents and/or ASTM Property VCSs do; the ASTM E53 standards fit nicely into many of the niches in the proposed ISO standard. So, what has NPMA been doing about this ISO proposal? The proposed ISO standards are up at the 75,000 to 80,000 foot level, or very much “top down”. NPMA publications and ASTM Property Standards are very much “ground up”. 6/10/2018 Speaker Name

Formed Subcommittee E53.10, ISO Asset Management Activities, officers: Presentation Title June 10, 2018 E53 Response Formed Subcommittee E53.10, ISO Asset Management Activities, officers:   Chair: Lyle Hestermann, CPPM CF, MIAM Vice Chair: James Dieter, CPPM CF Recording Scott Pepperman Secretary: ASTM Staff Pat Picariello Manager And, what has ASTM’s Committee E53 on Property Management Standards done in response to the ISO proposal? 6/10/2018 Speaker Name

Presentation Title June 10, 2018 E53.10 Response Subcommittee E53.10 has applied to ANSI to form a Technical Advisory Group (TAG) for PC251 ANSI approved/accepted our application in early December 2010. Further, E53.10 has applied to, and been accepted by, ANSI to form a TAG representing the US to the ISO Project Committee 251. 6/10/2018 Speaker Name

Anybody can participate in E53.10 or the proposed TAG. Presentation Title June 10, 2018 Who Can Participate? Anybody can participate in E53.10 or the proposed TAG.   However, to form and maintain a TAG, ANSI requires an application fee as well as an annual maintenance fee.  In order to generate those fees, the TAG is offering full voting memberships, for a fee. Contact E53.10 officers for further details. Who can participate in E53.10 and in the US TAG? 6/10/2018 Speaker Name

What Do The Proposed Standards Look Like? Presentation Title June 10, 2018 What Do The Proposed Standards Look Like? This International Standard is applicable to all types of organizations The organization shall establish, document, implement, maintain and continually improve an asset management system in accordance with the requirements of this International Standard. The organization shall define and document the scope of its asset management system. With the background in place, let’s take a brief look at the proposed standards. Just as with ASTM Property Standards, the proposed ISO standards are designed and developed to apply to almost any property/asset holding entity, and they are designed and developed so that entities need to define how they will incorporate and implement ISO requirements into their policies/procedures/practices. 6/10/2018 Speaker Name

Presentation Title June 10, 2018 Considerations An organization should consider, but not limit itself to, the following items within its review: ⎯ the organizational strategic plan; ⎯ legal, regulatory and other mandatory requirements; ⎯ identification and evaluation of the asset management risks faced by the organization; ⎯ existing asset management practices, process(es) and/or procedure(s); ⎯ the performance of the assets and asset systems (including suitability, utilization, condition, longevity and costs); ⎯ feedback from the investigation of previous incidents, accidents and emergencies; ⎯ relevant management systems, competencies and available resources (internal and external). Here are some of the major considerations of the standard. 6/10/2018 Speaker Name

Considerations Stakeholder requirements Risk Self Audit Presentation Title June 10, 2018 Considerations Stakeholder requirements Risk Self Audit Periodic Review Historical Data Benchmarking Best Practices Management Review Other major considerations 6/10/2018 Speaker Name

What Do The Proposed Standards Look Like? Presentation Title June 10, 2018 What Do The Proposed Standards Look Like? The organization’s top management shall authorize an overall asset management policy. Top management should arrange for the production of the asset management policy. And here is something we in NPMA have always wanted, and may be required by the ISO standards, top management involvement and support! 6/10/2018 Speaker Name

Questions? Want to join E53.10 or the US TAG? Contact Lyle, Jim, Scott or Pat Lyle_V_Hestermann@Raytheon.com 260.429.4082   James Dieter, jdieter@sunflowersystems.com 703.629.9014 Scott Pepperman ExecutiveDirector@nasasp.org 717-389-5100 Pat Picariello, ppicarie@astm.org 610.832.9720