1.1 Asset Management
Asset management should be imbedded in every organization.
At the moment of writing this report there are two main standards involved in the quality of asset management and asset management systems.
These standards are:
- PAS 55-1:20078
- ISO 55000
The Institute of Asset Management (IAM) state the following about these standards:
After the launch of BSI PAS 55:2008, the IAM worked hard with the British Standards Institution (BSI) to explore the best way to produce a formal International Standard, through the International Organization for Standardization (ISO).
The result of this hard work by the IAM is the new standard ISO 55000.
ISO 55000 defines Asset management as the “coordinated activity of an organization to realize value from assets”.
In turn, Assets are defined as follows: “An asset is an item, thing or entity that has potential or actual value to an organization”.
This is deliberately wider than physical assets but these form an important focus for more organizations.
Both standards work with the same levels of assets and their management.
Fig. 2.1, Levels of assets and their management
These governance levels, manage asset portfolio, manage asset systems and manage assets should all be imbedded in any organization and the quality of these levels must be sufficient.
Each of these levels must also have a responsible person who can be held accountable for the actions necessary to manage these levels.