AMS Behavior: Policy

Asset Management System Behavior Miniseries

This AMP Newsletter article begins the closing action of the Asset Management System (AMS) Behavior miniseries.  The first part walked through operative ISO 55001 subclauses covering how stated requirements affect decision making behavior through the viewpoint of an Asset Management (AM) Framework.  This second part will focus on AM Framework decision-making behavior covering the following AMS features:

• Policy,

• Objectives,

• Processes, and

• IT Enablement

The AMS Behavior miniseries will then finish with a article talking about the relationship between outcomes and behavior.

The following ISO 55000 definitions set context relating AMS behavior and policy:

• “asset – item, thing, or entity that has potential or actual value to an organization

• management – coordinated activities to direct and control an organization

• asset management – coordinated activity of an organization to realize value from assets

• management system – set of interrelated or interacting elements of an organization to establish policy and objectives, as well as processes to achieve these objectives

• asset management system – management system for asset management

• organization – person or group of people that has its own functions with responsibilities, authorities, and relationship to achieve its objectives

• policy – intentions and direction of an organization as formally expressed by its top management

• objective – result to be achieved

• requirement – need or expectation that is stated, generally implied or obligatory

• process – set of interrelated or interacting activities that uses or transforms input to deliver a result

• value – results from satisfying needs and expectations

• performance – measurable result

• framework – structure of processes and specifications design to support the accomplishment of a specific task

• top management – person or group who directs and controls an organization at the highest level”

Therefore, by ISO 55000 definition, policy is a required element of an AMS.  Policy is established by executive leadership (i.e. top management) and it must be formally expressed.  ISO 55001: 5.2. – Asset Management Policy establishes additional requirements in that policy be:

• “appropriate to the purpose of the organization

• provides a framework for setting asset management objectives,

• includes a commitment to meet applicable requirements,

• includes a commitment to continual improvement of the asset management system.”

The ISO 55001 update to be released in 2024 adds the following requirements:

• “Is consistent with other relevant organizational policies.”

• “be available as documented information,

• be communicated within the organization,

• be available to stakeholders, as appropriate.”

This makes policy the foremost statement on what the AMS is and how it is defined.  Policy may, and typically is, communicated through many documents and sources.  Although, advantage is gained when there is a single document that coordinates the whole of the organization’s approach to asset management and its purpose.  This policy document is where the AM Framework needs to be introduced.  In this way a single policy source establishes the why and how of asset management for the organization.