Enterprise Asset Management Solution & ISO55000: Are You Putting the Cart Before the Horse?

Some organizations believe implementing an enterprise asset management (EAM) software package is equivalent to establishing an asset management program. But that is like putting the cart before the horse. To establish a successful asset management program, organizations need to develop objectives and business practices to generate and maintain data before they can fully leverage their EAM software.

Asset management is a structured transition from “maintaining assets” to optimizing the life cycles of those assets. This means a shift in focus from whether an asset is functional to whether an asset is performing at a stated level of service, and whether it is doing so within an acceptable level of risk tolerance and affordable life cycle cost. It means understanding assets from “cradle-to-grave”—from the time they are brought online to the time they are retired—and combining that data with company goals to support life cycle management and decision making.

There is a symbiotic relationship between the business practices and processes that drive the generation of data and the tool that captures that data. EAM applications such as Cityworks and Oracle WAM enable the consistent generation and storage of data to help drive decision-making at all levels of an organization. Such tools must be designed and configured appropriate to an organization’s business practices and processes to generate the data necessary to make accurate life-cycle asset management decisions.

The ISO 55000 standard for EAM has provided an opportunity for organizations to transition from the mindset of “maintaining assets” to life-cycle asset management. The additional use of a computerized maintenance management system (CMMS) supports a variety of asset management programs, from those with disparate systems across departments to those with no systems at all.

Working within this standard empowers organizations to begin their journey toward a formal asset management program, which can then be supported by an EAM application implementation. Our five-year asset management program roadmap, developed from a structured assessment of gaps in existing asset management practices, outlines asset management fundamentals, initiates life-cycle asset management projects and guides CMMS implementation. This closely integrated approach enables EAM technology to support an organization’s overall asset management objectives, and appropriately puts the horse before the cart.

To learn more about how to strategically implement a successful asset management program, view our latest webinar, Enterprise Asset Management Solution & ISO 55000: Is your cart in front of your horse?.

Shiv Iyer, PhD, PE, PMP, MIAM

Dr. Shiv Iyer is a project manager with over 20 years of experience in engineering and asset management who often serves as a subject matter expert for enterprise management.