ISO 55001 – Asset Management System (AMS)

Any organization’s assets, no matter how small or large, are integral parts of its operations. In simple terms, assets can be physical or intangible. These assets include anything from IT components to inventory and intellectual property. Any business can benefit greatly from the assets.

It is crucial to managing assets efficiently and ISO 55001 does that.ISO 55001 is crucial for industries that require capital and have many assets.

ISO 55001 offers a solid asset management framework that can be used to manage risk and maximize value. The following are some of the notable improvements that organizations have witnessed:

  • Reduced Operational Costs by 15%
  • Increase of 10% in the Utilization and Return on Capital

A strong management system helps to create a culture that is constantly improving and can be used to:

  • Performance improvement in Asset performance (e.g. uptime, efficiency);
  • A reduction in the cost per unit of product/service;
  • Improvements in reliability and availability (mean time/distance to failures);
  • Improves life cycle costs

Terms and Definitions about ISO 55001

For a deeper understanding, let’s look at the definitions and meanings of certain terms before we get into the details.

You can have tangible or intangible value, as well as financial and non-financial.

Physical assets typically refer to equipment, inventory, and property owned by an organization.

Intangible assets can be defined as non-physical assets such as brands, leases or agreements, use rights, licenses, intellectual properties rights, reputations, or agreements.

Asset Management

Assets are created to bring value to the organization. Asset management is not about the asset but rather the value the asset can bring to an organization.

The organizational objective is translated to financial and technical goals.

  • Leadership and workplace culture determine the realization value.
  • The asset will be used for its intended purpose.
  • Scope & Application of ISO 55001

ISO 55001 can apply to all types or sizes of assets, as well as to organizations of all sizes that are trying to maximize the value of their assets.

  • Physical assets
  • Information assets
  • Intangible assets
  • Key assets
  • Information and Communications Technology assets
  • Infrastructure assets
  • Moveable assets

Kindly Note:

The organization’s physical assets typically refer to its equipment, inventory, and properties.

Intangible assets can be defined as non-physical assets like leases, brands, and digital assets. They also include use rights, licenses, or intellectual property rights.

Each organization should record the following information to ensure compliance with ISO 55001

Strategy and Planning

Policies and objectives for corporate services

Strategic Asset Management Plans / Asset Management Strategies

Asset Management Plans

  • Procedures and processes related to assets
  • Process performance indicators and targets
  • Technical and Asset-related properties

Service Delivery and Operation

Service levels, performance targets, asset performance characteristics, future operational needs, and demand management goals.

Maintenance Management

Historic asset failures, replacement or betterment dates, and future maintenance needs.

Performance Management and Reporting

Asset performance data, Continuous Improvement Objectives, and Reporting.

Risk Management

Contingency and Continuity planning

Contract Management

Asset-related contractual information, vendor info, services, objectives, and third party agreements

Best Practice has a team of skilled consultants that can help you grow your business and assist you in the implementation process. Get in touch with our consultants today to find out more about how ISO 55001 Asset Management System could help you strengthen your business.


Categories: Business