ISO55000 Standard as A Driver for Effective Maintenance Budgeting

Abstract

Companies are suffering from major industrial disasters, financial crisis and continued global instability caused by civil unrest and economic pressure.With the attendant issues associated with the increased economic and market globalization comes the criticality of standards and its role in, increasing productivity and efficiency, decreasing non-value-added information and promoting process through structured asset management techniques. The International Standard for Organization (ISO 55000) was developed specifically for Asset Management (AM), which consists of a series of three components, ISO 55000, ISO 55001 and ISO 55002. ISO 55000 takes a holistic approach to asset management; it is not just about maintenance but also about value creation. ISO 55000 requires changes in policy, processes and people thereby challenge the status quo and it leads to a new regime of asset care. Asset care requires organizations to comply with standards and various regulations. Adopting ISO 55000 will allow organization to align the way assets are managed and maintained, it improves return on investments by reducing costs, while supporting asset value without sacrificing organizational objectives. Maintenance and reliability processes, programs are aligned with ISO 55000, and span the entire life cycle of the assets including design, engineering, procurement, installation, start-up, operation, maintenance, restoration, decommissioning, and disposal. A popular term for the process is 'from cradle to grave'. Physical assets are often taken for granted and with increased reliability. Managing assets today is more complex, yet in many organizations, the management of those assets is often unfocused and inappropriate. Organizations with a strong profit focus need to examine ISO 55000 from the perspective of finding methods to leverage it into lower costs and increased outputs. The aim of this paper is to classify the necessary elements in ISO 550000, which organizations need to adopt in order to improve their approach to asset maintenance budgeting. It will highlight the main issues that need to be addressed when implementing ISO 55000 standard