2014 NPMA Spring Seminar Value Through Professional Asset Management Implementing ISO Contracts Jim Dieter

2014 NPMA Spring Seminar Value Through Professional Asset Management The Best News  Organizations using these principles around the world are realizing significant cost savings  What’s necessary isn’t new money, but smarter use of existing money  There are achievable savings beyond the cost of implementation Competitive advantage

2014 NPMA Spring Seminar Value Through Professional Asset Management The Path Forward  Awareness  Understanding  Planning  Advocacy  Negotiation  Implementation  Institutionalization Who has the skills and the position to make this happen in your organization? What is your role?

2014 NPMA Spring Seminar Value Through Professional Asset Management A Quick Assessment  What’s new to us?  What are we already doing?

2014 NPMA Spring Seminar Value Through Professional Asset Management 5 Management System Standards  [ ] New [ ] Existing A big plus if your organization is already ISO literate.

2014 NPMA Spring Seminar Value Through Professional Asset Management 6 Management System Standards  [ ] New [ ] Existing If your organization has already implemented two ISO Standards, you are rolling downhill!

2014 NPMA Spring Seminar Value Through Professional Asset Management 7 Management System Standards  [ ] New [ ] Existing If three, home free!

Managing the Organisation Asset Management Coordinated activity of an organization to realize value from assets ISO 55000: Overview  [ ] New [ ] Existing Is your organization aware asset management exists?

2014 NPMA Spring Seminar Value Through Professional Asset Management Benefits of Asset Management Benefits = Your Sales Pitch

2014 NPMA Spring Seminar Value Through Professional Asset Management Benefits of Asset Management  improved financial performance  informed asset investment decisions  managed risk  improved services and outputs  demonstrated social responsibility  [ ] New [ ] Existing

2014 NPMA Spring Seminar Value Through Professional Asset Management Benefits of Asset Management  demonstrated compliance  enhanced reputation  improved organizational sustainability  improved efficiency and effectiveness  [ ] New [ ] Existing

2014 NPMA Spring Seminar Value Through Professional Asset Management Asset Management Fundamentals  Alignment  Leadership  Assurance  Value How do the fundamentals play in a government contract property environment?

2014 NPMA Spring Seminar Value Through Professional Asset Management Fundamentals: Alignment  Objectives into actions  Integration  A supporting Asset Management System  [ ] New [ ] Existing Line of sight……..

2014 NPMA Spring Seminar Value Through Professional Asset Management Fundamentals: Leadership  Workplace culture  Roles and responsibilities – and authority  Awareness  Stakeholder involvement  [ ] New [ ] Existing Culture trumps strategy, every time

2014 NPMA Spring Seminar Value Through Professional Asset Management Fundamentals: Assurance  Assets fulfill purpose  Processes  Connection to organizational objectives  Continual improvement  Necessary resources  [ ] New [ ] Existing What a great wish list!!!

2014 NPMA Spring Seminar Value Through Professional Asset Management Fundamentals: Value  Asset management objectives align with organizational objectives  Use of a lifecycle management approach  Decision-making processes that reflect stakeholder need and define value  [ ] New [ ] Existing We know lifecycle

Managing the Organization Asset Management Coordinated activity of an organization to realize value from assets Asset Management System Set of interrelated or interacting elements to establish AM policy, AM objectives and processes to achieve those objectives ISO 55001: Requirements

2014 NPMA Spring Seminar Value Through Professional Asset Management ISO Definition of Management System  Management System – Set of interrelated or interacting elements of an organization to establish policies and objectives, and processes to achieve those objectives 18  [ ] New [ ] Existing

2014 NPMA Spring Seminar Value Through Professional Asset Management Asset Management System The Organization Leadership Plans Support Operation Performance Evaluation Improvement 19 Now we are into the ISO requirements.

2014 NPMA Spring Seminar Value Through Professional Asset Management The Organization  Stakeholders, not just shareholders  Scope – what assets are included?  System interfaces 20  [ ] New [ ] Existing Scope is the critical discussion

2014 NPMA Spring Seminar Value Through Professional Asset Management Leadership  Top management involvement  Continual improvement  AM integrated with business processes  Adequate resources available  Establish an Asset Management Policy  Alignment with organizational strategic plan  [ ] New [ ] Existing Challenging

2014 NPMA Spring Seminar Value Through Professional Asset Management Plans  Establish an Asset Management Plan  Measurable objectives  Risk management  Monitored and communicated 22  [ ] New [ ] Existing A great strength

2014 NPMA Spring Seminar Value Through Professional Asset Management Support  Provide necessary resources  Assure competence of people doing the work  Awareness  Information requirements  Documentation 23  [ ] New [ ] Existing An important role for the NPMA

2014 NPMA Spring Seminar Value Through Professional Asset Management Operation  Process control  Change management  Control of any outsourced activities 24  [ ] New [ ] Existing Subcontracting expertise

2014 NPMA Spring Seminar Value Through Professional Asset Management Performance Evaluation  Monitor and measure  Analysis and evaluation  Internal audit  Management review 25  [ ] New [ ] Existing Why another one??? We know audits!!!

2014 NPMA Spring Seminar Value Through Professional Asset Management Improvement  Nonconformity and corrective action  Preventive action  Continual improvement 26  [ ] New [ ] Existing What does improvement have to do with compliance???

Managing the Organization Asset Management Coordinated activity of an organization to realize value from assets Asset Management System Set of interrelated or interacting elements to establish AM policy, AM objectives and processes to achieve those objectives Asset Portfolio Assets that are within the scope of the asset management system Wow, only now are we finally getting to the assets!?!

2014 NPMA Spring Seminar Value Through Professional Asset Management Government Contract Property 28  Where do we stand?

2014 NPMA Spring Seminar Value Through Professional Asset Management Connections to ASTM E53 Standards  Tactical management standards Equipment Control Matrix Outcomes Maturity Model  Lifecycle process standards Physical Inventory Verification Receiving, tagging, transfer, etc. A firm grounding in VCSs

2014 NPMA Spring Seminar Value Through Professional Asset Management The Good News!  We are already doing Asset Management better than the rest of the world  98+% accuracy is beyond the most aggressive goals of organizations around the world  Familiarity with compliance and an audit environment Now let’s revisit ….

2014 NPMA Spring Seminar Value Through Professional Asset Management More Good News!!  Centralized, system level approach  Excellent Asset Management registries  Established systems for Asset Management  A record of success

2014 NPMA Spring Seminar Value Through Professional Asset Management Still More Good News!!!  Documented policies and procedures  That are being followed!  Historical transaction data  Plans

2014 NPMA Spring Seminar Value Through Professional Asset Management The Delta  Top Management visibility and impact  Scope  Integration  Managing vs. controlling Manage the Delta

2014 NPMA Spring Seminar Value Through Professional Asset Management The Beginning! Will it be for you?