New standards take strategic view of asset management

Posted on 29. Aug, 2012 by in Academic Departments, Engineering Professional Development, Issues, Research

The International Organization for Standardization (ISO) 9000 standard for quality management, which has now been adopted by more than 1.25 million companies, has had many positive effects on investment, market share, sales growth, sales margins, competitive advantage, and avoidance of litigation.

ISO is now preparing ISO 55000, a new standard for asset management. “ISO 55000 has been conceived as a very broad standard, which can affect the management of physical assets in all types of organizations, both public and private,” says Engineering Professional Development Faculty Associate Thomas Smith, a member of the ISO 55000 standards committee and the editor of one of the key sections.

ISO committee members

Committee members hail from around the world.

The members of the standards committee represent 37 countries and numerous business areas, from commercial real estate, mining, and manufacturing, to utility systems, large-scale property management and physical infrastructure. This new international standard draws from many of the already existing standards developed by the participating countries, but extends to cover new ground. ISO 55000 specifically requires a life-cycle view of physical assets and places asset management in an organizational strategic context.

Smith says strategic asset management is a complex undertaking and ISO 55000 takes a management systems approach. The standard is written to be compatible with other management systems standards: ISO 14000 for environmental management, ISO 5000 for energy management, and others for safety, security and quality.

Many organizations will implement these standards together. The standard currently is in draft form. After circulation for comment from the 162 ISO member countries, the standard will be officially released in early 2014.

The Department of Engineering Professional Development offers a series of asset management courses that will address this standard and other best practices in asset management. More: epd.engr.wisc.edu/2012asset

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