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Using ISO 55000 for Enterprise Asset Management

Wednesday, October 29, 2014

The asset integrity standard ISO 55000 might sound like a dry subject, but gets exciting if it makes it easier for companies to work together, share infrastructure and reduce costs, says CGI's Bob Baxter

Many people believe that oil companies should collaborate more, including sharing assets, particularly on mature fields - it was a key recommendation of the Wood Report as a way of maximising oil and gas recovery from the North Sea.

An important tool for getting there is a standard for asset integrity, so one operator can be comfortable that the operator it is working with is operating assets to a certain standard, said Bob Baxter, oil and gas upstream account manager with CGI, speaking at Digital Energy Journal's Sept 24th Aberdeen conference, Using Analytics to Improve Asset Integrity.

For example, imagine if the costs of an offshore project would be much lower if an operator was able to share another operator's sour gas plant, rather than build one of their own. Sour gas plants can be very dangerous, so the first operator might feel more comfortable building their own one, but could be persuaded if they knew that the plant was being operated to a specific high standard.

ISO 55000 was developed by the Institute of Asset Management together with the British Standards Institution, and builds on the PAS55 specification for optimised management of physical assets, which was developed in 2002-2004. CGI played an active role in helping develop the PAS55 which in turned formed the new ISO 55000 certification.

'ISO 55000 gives you 60 per cent of the processes you need to be able to start using your assets properly,' Mr Baxter said.

The other 40 per cent of processes you need are the ones geared towards your specific operation, which you probably need to work out for yourself.

The processes guide you to make a method to get a continuous detailed view of your asset, what condition it is in, and what if anything needs work.

It helps you work out your asset management objectives and policy, build an asset management plan on both a 'strategic' and specific level. Ultimately you can work out if your asset is working effectively and efficiently, or if there is cause for concern.

You can spot important themes or topics which you should manage, and work out a program to work with the near real time data about the asset . You can develop a system for your operations team about what data they need to capture.

It lays out a 'structure and vocabulary' for how you manage the asset.

Once you have a system in place, you can get it accredited by an outside company to certify that it meets the standard. Additional benefits can be perceived from such certification such as accurate asset values when it comes to divestments or even driving the insurance premium down on some of your assets.

The expanding adoption of PAS55/ISO 55000 and other regulation changes are creating new requirements for improving quality, consistency, and management of asset information that will require new investments in processes and infrastructure.


The biggest benefit is a better understanding of how your asset is. 'There's no point in having a billion dollar asset if you don't know what it can and can't do for you,' he said.

It will also help you keep information in the company for when people leave, and might make the asset easier to sell.

You can develop your own data about mean time between failure, rather than rely on manufacturers' data.

CGI and OpenText

CGI provides services to help clients manage their asset condition data, and usually recommends working with the OpenText software to manage the data itself.

'What we're offering, in conjunction with OpenText, is a 360 degree view of the asset and a single-source-of-truth for asset operations and maintenance for the full life-cycle of the asset. By securely managing all of the structured and unstructured information about your assets and related processes, owner-operators are assured that the information and procedures about their assets is complete, up-to-date, and accessible, anywhere and anytime.

CGI was involved in developing the ISO55000 standard, through its membership of the Institute of Asset Management.

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