EN 17485:2021
(Main)Maintenance - Maintenance within physical asset management - Framework for improving the value of the physical assets through their whole life cycle
Maintenance - Maintenance within physical asset management - Framework for improving the value of the physical assets through their whole life cycle
This document specifies methods and procedures when applying physical asset management as a framework to take maintenance into account as an influencing factor within an organizations’ strategic and tactical decisions on its physical assets, and when applying physical asset management as a framework to maintenance activities. It also specifies the relationship between organizational strategic plan and the maintenance management system at a methodological level and describes the interrelations between maintenance process and all the other physical asset management processes at a procedural level.
This document is applicable to managing the physical assets of organizations of all sizes especially organizations producing goods and services with physical assets. It introduces methods and procedures for all the levels and functions of the organizations’ management such as corporate planning management, plant management, technical management, production management, financial management, asset management, maintenance management, quality management, etc. The focus of the document is at the asset portfolio and system levels and consists of guidance and recommendations. It does not apply to certification, regulatory, or contractual use.
However, if specific documents exist for a particular domain, it is important to also consider those documents.
Instandhaltung - Instandhaltung im Rahmen des Anlagenmanagements - Methodik zur Verbesserung des Anlagenwerts über den gesamten Lebenszyklus
Dieses Dokument beschreibt Vorgehensweisen und Verfahren für die Anwendung des Anlagenmanagements als Rahmen dafür, Instandhaltung als Einflussfaktor für die die physischen Assets betreffenden strategischen und taktischen Entscheidungen einer Organisation zu berücksichtigen, und für die Anwendung des Anlagenmanagements als Rahmen für Instandhaltungstätigkeiten. Es beschreibt außerdem auch den Zusammenhang zwischen dem strategischen Organisationsplan und dem Managementsystem für die Instandhaltung auf einer methodischen Ebene ein und beschreibt die Wechselwirkungen zwischen dem Instandhaltungsprozess und allen weiteren Prozessen des Anlagenmanagements auf einer Verfahrensebene.
Dieses Dokument ist für das Management der physischen Assets von Organisationen aller Größen anwendbar, insbesondere von Organisationen, die Güter und Dienstleistungen mit physischen Assets erzeugen. Es führt Vorgehensweisen und Verfahren für alle Ebenen und Funktionen des Managements der Organisation ein, wie z. B. das Management der Unternehmensplanung, das Werksmanagement, das technische Management, das Produktionsmanagement, das Finanzmanagement, das Asset Management, das Instandhaltungsmanagement und das Qualitätsmanagement usw. Der Schwerpunkt des Dokuments ist auf die Ebenen des Asset Portfolios und des Asset Systems ausgerichtet und umfasst Leitlinien und Empfehlungen. Es gilt nicht für die Zertifizierung, behördliche oder vertragsrechtliche Zwecke.
Falls jedoch für einen bestimmten Bereich spezifische Dokumente vorhanden sind, ist es wichtig, diese Dokumente ebenfalls zu berücksichtigen.
Maintenance - Maintenance dans le cadre de la gestion d’actifs physiques - Cadre pour l’amélioration de la valeur des actifs physiques tout au long de leur cycle de vie
Le présent document spécifie les méthodes et les modes opératoires employés lors de l’application de la gestion d’actifs physiques en tant que cadre pour tenir compte de la maintenance comme facteur d’influence dans les décisions stratégiques et tactiques d’un organisme sur ses actifs physiques, et lors de l’application de la gestion d’actifs physiques en tant que cadre pour les activités de maintenance. Il précise également le lien qui existe entre le plan stratégique organisationnel et le système de management de la maintenance à un niveau méthodologique et décrit les interrelations entre le processus maintenance et tous les autres processus de gestion d’actifs physiques à un niveau procédural.
Le présent document s’applique à la gestion d’actifs physiques d’organismes de toutes tailles et, plus particulièrement, d’organismes qui produisent des biens et des services avec des actifs physiques. Il présente les méthodes et les modes opératoires pour tous les niveaux et toutes les fonctions de management des organismes, notamment le management stratégique d’entreprise, le management d’usine, le management technique, le management de production, le management financier, le management des actifs, le management de la maintenance, le management de la qualité, etc. Le présent document apporte des conseils et recommandations centrés sur les niveaux système et portefeuille d’actifs. Il ne s’applique ni à la certification ni à un usage réglementaire ou contractuel.
Toutefois, si des documents spécifiques existent pour un domaine particulier, il est important de prendre également en compte ces documents.
Vzdrževanje - Vzdrževanje znotraj obvladovanja premoženja - Okvir za izboljšanje vrednosti fizičnega premoženja v njegovem celotnem življenjskem ciklu
General Information
Standards Content (Sample)
SLOVENSKI STANDARD
01-september-2021
Vzdrževanje - Vzdrževanje znotraj obvladovanja premoženja - Okvir za izboljšanje
vrednosti fizičnega premoženja v njegovem celotnem življenjskem ciklu
Maintenance - Maintenance within physical asset management - Framework for
improving the value of the physical assets through their whole life cycle
Instandhaltung - Instandhaltung im Rahmen des Anlagenmanagements - Methodik zur
Verbesserung des physischen Assetwerts während des gesamten Lebenszyklusses
Maintenance - Maintenance dans le cadre de la gestion d’actifs physiques - Cadre pour
l’amélioration de la valeur des actifs physiques tout au long de leur cycle de vie
Ta slovenski standard je istoveten z: EN 17485:2021
ICS:
03.100.10 Nabava. Dobava. Logistika Purchasing. Procurement.
Logistics
2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.
EN 17485
EUROPEAN STANDARD
NORME EUROPÉENNE
June 2021
EUROPÄISCHE NORM
ICS 03.100.01
English Version
Maintenance - Maintenance within physical asset
management - Framework for improving the value of the
physical assets through their whole life cycle
Maintenance - Maintenance dans le cadre de la gestion Instandhaltung - Instandhaltung im Rahmen des
d'actifs physiques - Cadre pour l'amélioration de la Anlagenmanagements - Methodik zur Verbesserung
valeur des actifs physiques tout au long de leur cycle de des physischen Assetwerts während des gesamten
vie Lebenszyklusses
This European Standard was approved by CEN on 26 April 2021.
CEN members are bound to comply with the CEN/CENELEC Internal Regulations which stipulate the conditions for giving this
European Standard the status of a national standard without any alteration. Up-to-date lists and bibliographical references
concerning such national standards may be obtained on application to the CEN-CENELEC Management Centre or to any CEN
member.
This European Standard exists in three official versions (English, French, German). A version in any other language made by
translation under the responsibility of a CEN member into its own language and notified to the CEN-CENELEC Management
Centre has the same status as the official versions.
CEN members are the national standards bodies of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway,
Poland, Portugal, Republic of North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and
United Kingdom.
EUROPEAN COMMITTEE FOR STANDARDIZATION
COMITÉ EUROPÉEN DE NORMALISATION
EUROPÄISCHES KOMITEE FÜR NORMUNG
CEN-CENELEC Management Centre: Rue de la Science 23, B-1040 Brussels
© 2021 CEN All rights of exploitation in any form and by any means reserved Ref. No. EN 17485:2021 E
worldwide for CEN national Members.
Contents Page
European foreword . 3
Introduction . 4
1 Scope . 7
2 Normative references . 7
3 Terms, definitions and abbreviations . 7
3.1 Terms and definitions . 7
3.2 Abbreviations .13
4 Strategic planning for maintenance within physical asset management .14
4.1 Strategic asset management plan (SAMP) .14
4.2 Developing AM policy, SAMP and AM plan .16
4.3 Influence of uncertainty on SAMP and maintenance strategy .30
5 Sustainable life-cycle management .35
5.1 Introduction .35
5.2 Asset life-cycle stages .35
5.3 Triggers, life-cycle activities, life-cycle costing procedure and decision criteria .36
5.4 Triggers: greenfield and brownfield investments .42
5.5 Activities: greenfield and brownfield investments .43
5.6 Triggers: utilization stage .47
5.7 Activities: utilization stage .47
6 Performance evaluation and improvement of physical assets .59
6.1 Performance evaluation and improvement framework (principle) .59
6.2 The system of performance monitoring .60
6.3 Examples of performance management approaches .65
Annex A (informative) The overlapping nature of the asset hierarchy with an example .74
Annex B (informative) Examples of the factors to determine organizational context of
organizations .77
Annex C (informative) Overview of internal and external influencing factors .79
Annex D (informative) The influence of the characteristics of the production system in
detail (in addition to the earlier ones) .82
Annex E (informative) Explanation of elements of organizations’ strategic planning
process .84
Annex F (informative) Determination of requirements and criticality assessment of the
assets .88
Annex G (informative) Factors influencing asset and maintenance management
performance.92
Annex H (informative) Cost-benefit analyses .94
Annex I (informative) Return on assets vs. return on physical assets .95
Bibliography .97
European foreword
This document (EN 17485:2021) has been prepared by Technical Committee CEN/TC 319
“Maintenance”, the secretariat of which is held by UNI.
This European Standard shall be given the status of a national standard, either by publication of an
identical text or by endorsement, at the latest by December 2021, and conflicting national standards shall
be withdrawn at the latest by December 2021.
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. CEN shall not be held responsible for identifying any or all such patent rights.
According to the CEN-CENELEC Internal Regulations, the national standards organisations of the
following countries are bound to implement this European Standard: Austria, Belgium, Bulgaria, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland,
Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of North
Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the United
Kingdom.
Introduction
EN 17485 introduces methods and procedures about maintenance within physical asset management for
all the levels and functions of the organizations’ management, including corporate planning management,
plant management, technical management, production management, financial management, asset
management, maintenance management, and quality management.
EN 16646 ‘Maintenance - Maintenance within physical asset management’ was published in December
2014. Since it gives a general framework to allow and determine the role and tasks of maintenance within
the larger frame of physical asset management, but does not introduce detail methods and procedures to
implement or establish it. The aim of EN 17485 is to close this gap.
This document addresses the principles of physical asset management, which are relevant from the
maintenance point of view. This document offers a framework for a systematic management approach.
The aims of this document are to:
— create and systematize the link between business, physical asset management and maintenance
activities of organizations;
— indicate external and internal influencing factors and their effect on physical asset and maintenance
management;
— promote cross-functional cooperation;
— address transparency in organizational decision making;
— address simulation and visualization as effective tools to support decision making;
— address uncertainty management to improve the quality of decision making;
— improve information management as an activity to achieve the above-mentioned objectives;
— address the sustainability of operations.
These targets improve the chances of success in meeting the physical asset management challenges
mentioned in EN 16646. It mentions several reasons why physical asset management is nowadays more
important than ever before. The same reasons are valid when we evaluate the importance of methods
and procedures.
This document introduces methods and approaches to build a bridge between maintenance and the other
functions.
Many benefits can be achieved when applying the methodology presented in this document:
— economically more efficient, effective and profitable use of capital: ‘turnover of and return on assets’;
— more accurate long-term life cycle decisions;
— integrated investment and maintenance planning;
— integrated approach for the production function (assets, operation and maintenance);
— direction given to maintenance strategies and activities;
— improved position for maintenance among the other company functions;
— improved assessment of performance and control;
— enhanced capability to operate within extended enterprise ecosystems (including
customers/suppliers);
— enhanced reputation;
— more sustainable use of capital.
Further and maybe even greater benefits are now being found through improved credibility in the eyes
of customers, regulators and other stakeholders. Physical asset management also results in much greater
engagement and motivation of the workforce, and in more sustainable, continual improvement business
processes. Physical asset management builds up the required link between maintenance management
and the organizational strategic plan and gives direction to maintenance activities.
The standards EN 16646 and EN 17485 build the bridge between ISO 5500x (Asset management system
standards) and the EN maintenance standards. ISO 55001 states that organizations should determine e.g.
the organizational context, requirements for the assets, decision criteria, strategic asset management
plan and asset management plan (including maintenance). However, it does not describe how to do it.
Respectively, maintenance standards often introduce e.g. the concept of the required function or the
concept of maintenance strategy, but do not explain how they have been determined. EN 17485
introduces a methodological framework which advises organizations to implement the requirements
presented in ISO 55001. By doing this it creates the bridge between the several maintenance standards
and ISO 5500x in order to give an applicable starting point to the more detailed documents for the specific
sub-functions of maintenance (See Figure 1).
Figure 1 — Links between EN 17485 and other standards
Figure 2 — The structure of the core clauses
In Figure 2, life cycle management covers 3 main life cycles stages (see in detail 5.2):
1. Acquisition stages (6 sub-stages) where the impact of maintenance on asset solutions have been
indicated and the first contributions on maintenance strategies and programmes have been created;
2. Utilization stages (3 sub-stages) which are:
— Utilization of physical assets;
— Maintenance of physical assets;
— Replacements including reconditioning, improvements, modifications, modernizations;
3. Disposal stage.
1 Scope
This document specifies methods and procedures when applying physical asset management as a
framework to take maintenance into account as an influencing factor within an organizations’ strategic
and tactical decisions on its physical assets, and when applying physical asset management as a
framework to maintenance activities. It also specifies the relationship between organizational strategic
plan and the maintenance management system at a methodological level and describes the interrelations
between maintenance process and all the other physical asset management processes at a procedural
level.
This document is applicable to managing the physical assets of organizations of all sizes especially
organizations producing goods and services with physical assets. It introduces methods and procedures
for all the levels and functions of the organizations’ management such as corporate planning
management, plant management, technical management, production management, financial
management, asset management, maintenance management, quality management, etc. The focus of the
document is at the asset portfolio and system levels and consists of guidance and recommendations. It
does not apply to certification, regulatory, or contractual use.
However, if specific documents exist for a particular domain, it is important to also consider those
documents.
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any amendments) applies.
EN 13306:2017, Maintenance — Maintenance terminology
EN 16646:2014, Maintenance — Maintenance within physical asset management
ISO 55000:2014, Asset management — Overview, principles and terminology
3 Terms, definitions and abbreviations
3.1 Terms and definitions
For the purposes of this document, the terms and definitions given in EN 13306, ISO 55000, EN 16646
and the following apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https://www.iso.org/obp
— IEC Electropedia: available at https://www.electropedia.org/
3.1.1
asset
item, thing or entity that has potential or actual value to an organization
Note 1 to entry: In this document the term ‘asset’ means physical asset (3.1.2).
Note 2 to entry: A machine or device (e.g. a pump, a gear, a valve) can be called a single asset.
[SOURCE: ISO 55000:2014, 3.2.1, modified – Note 2 to entry has been redrafted and renumbered as Note
1 to entry; Notes 1 and 3 to entry have been deleted]
3.1.2
physical asset
item that has potential or actual value to an organization
[SOURCE: EN 13306:2017, 3.2, modified]
3.1.3
asset portfolio
assets that are within the scope of the asset management system
Note 1 to entry: An asset portfolio consists of several asset systems.
Note 2 to entry: See Annex A.
[SOURCE: ISO 55000:2014, 3.2.4, modified – Notes 1 and 2 to entry have been deleted and new Notes 1
and 2 to entry have been drafted]
3.1.4
asset replacement value
ARV
estimated amount of capital that would be required to replace the old plant or asset to the similar new
asset
Note 1 to entry: Replacement value is often equivalent to the fire insurance value.
Note 2 to entry: In the literature also plant replacement value (PRV) is widely used.
3.1.5
asset solution
asset that fulfils the requirements set in the concept definition
Note 1 to entry: A non-asset solution fulfils the requirements without asset ownership.
3.1.6
asset system
set of assets that interact or are interrelated
Note 1 to entry: A production line, sewage water treatment plant, transport vehicle and power plant units are
typical examples of asset systems.
[SOURCE: ISO 55000:2014, 3.2.5, modified – Note 1 to entry has been added]
3.1.7
asset specificity
aspect or feature of an asset (such as a specialized machine) that makes it useful for one or few specific
purposes, and therefore no other owner can get the same value from it
Note1 to entry: ‘Asset specific’ indicates high value of asset specificity.
3.1.8
business environment
all the external factors within the market, technology and community influencing on the decision making
of the organization
[SOURCE: EN 16646:2014]
3.1.9
commercially constrained
property of the assets or asset systems, that limits profitable transaction because of asset specificity,
competition reasons, obsolescence or price level
3.1.10
competence
proven ability to use knowledge, skills (3.10), and personal, social and/or methodological abilities, in
work or study situations and in professional and personal development
Note 1 to entry: Competence is described in the terms of responsibility and autonomy.
[SOURCE: EN 15628:2014, 3.1]
3.1.11
concept definition
stage of the asset life cycle after feasibility study, where the basic technological solution is determined
3.1.12
creation of physical asset
acquisition process, which can include concept definition, design, manufacturing, installation,
commissioning
[SOURCE: EN 16646:2014, 3.1.3]
3.1.13
improvement
dependability improvement
combination of all technical, administrative and managerial actions, intended to ameliorate the intrinsic
reliability and/or maintainability and/or safety of an asset, without changing the original function
Note 1 to entry: An improvement may also be introduced to prevent misuse in operation and to avoid failures.
[SOURCE: EN 13306:2017, 7.6]
3.1.14
integrity
asset integrity
ability of a system to sustain its form, stability and robustness, and maintain its consistency of
performance and use
3.1.15
item
part, component, device, subsystem, functional unit, equipment or system that can be individually
described and considered
Note 1 to entry: A number of items e.g. a population of items, or a sample, may itself be considered as an item.
Note 2 to entry: An item may consist of hardware, software or both.
Note 3 to entry: Software consists of programs, procedures, rules, documentation and data of an information
processing system.
[SOURCE: EN 13306:2017, 3.1]
3.1.16
critical success factor
attribute required for an organization to ensure the success of an organization
[SOURCE: EN 16646:2014, 3.1.4, modified – ‘critical success factor’ instead of ‘key success factor’]
3.1.17
lagging indicator
measure of an output
[SOURCE: ISO 41014:2020, 3.8.1]
3.1.18
leading indicator
measure of an input
[SOURCE: ISO 41014:2020, 3.8.2]
3.1.19
life cycle of a physical asset
series of stages through which a physical asset goes, from its conception to disposal
[SOURCE: EN 13306:2017, 4.18, modified – ‘of a physical asset’ added, ‘an item’ replaced by ‘a physical
asset’, example and Note 1 to entry have been deleted]
3.1.20
maintenance
function which includes all technical, administrative and managerial actions during the life cycle of an
item intended to retain it in, or restore it to, a state in which it can perform the required function
Note 1 to entry: Maintenance is not limited to a maintenance department.
Note 2 to entry: The maintenance is contributed by all the functions of the organization.
[SOURCE: EN 13306:2017, 2.1, modified – ‘combination of’ replaced by ‘function which includes’, Notes
1, 2 and 3 to entry have been deleted and new Notes 1 and 2 to entry have been drafted]
3.1.21
minimum effective expansion investment
smallest investment that is possible to increase capacity
Note 1 to entry: Minimum effective expansion investment is closely associated with the level of step costs
Note 2 to entry: For example, if a paper mill having one paper machine wants to increase its capacity it should
invest in another paper machine having a very high step cost. If 5 % additional capacity is needed only, then other
measures e.g. improved maintenance, could be more effective. Whereas a dressmaker’s shop having 100 sewing
machines can easily increase its capacity with 5 machines at a low step cost.
3.1.22
modernization
modification or improvement in the case of nonconformity of the asset, regarding technological advances,
to meet new or changed requirements
[SOURCE: EN 13306:2017, 7.8, modified]
3.1.23
modification
combination of all technical, administrative and managerial actions intended to change one or more
functions of a physical asset
Note 1 to entry: Modification is not a maintenance action but has to do with changing the required function of an
item to a new required function. The changes may have an influence on the dependability characteristics.
Note 2 to entry: Modification may involve the maintenance organization.
Note 3 to entry: The change of an item where a different version is replacing the original item without changing
the function or ameliorating the dependability of the item is called a replacement and is not a modification.
[SOURCE: EN 13306:2017, 7.7, modified – ‘of an item’ replaced by ‘of a physical asset’]
3.1.24
operating conditions
physical loads and environmental conditions as experienced by the asset during the entire life cycle
Note 1 to entry: Operating conditions can vary during the asset’s life cycle.
[SOURCE: EN 13306:2017, 4.22, modified – ‘experienced by the item during a given period’ replaced by
‘as experienced by the asset during the entire life cycle’, ‘item’ replaced by ‘asset’ in Note 1 to entry]
3.1.25
operating constraints
characteristics of the asset, which set limits for the use of the asset and may determine requirements for
maintenance activities
Note 1 to entry: These characteristics are the results of design and construction of the assets and are influenced
by the operational mode and operation conditions.
[SOURCE: EN 13306:2017, 4.21, ‘item’ replaced by ‘asset’ in definition and Note 1 to entry, Note 1 to entry
has been redrafted]
3.1.26
operational mode
operating profile
configuration in which an item is operated and utilized during a given period characterized by units of
use (hours, loads, number of starts/stops, number of transients, etc.)
Note 1 to entry: Operational mode determines the frequency, load, continuity and performance rate of utilization.
[SOURCE: EN 13306:2017, 4.20]
3.1.27
physical asset management
coordinated activities of an organization to realize value from physical assets
Note 1 to entry: Realization of value will normally involve a balancing of costs, risks, opportunities and benefits.
Note 2 to entry: In the life cycle context, physical asset management is the optimal life cycle management of
physical assets to sustainably achieve the stated business objectives.
[SOURCE: ISO 55000:2014, 3.3.1, modified, added ‘physical’]
3.1.28
technical depreciation
difference between the asset replacement value and actual value
Note 1 to entry: Technical depreciation should be based on the asset replacement value but not on asset book
value.
Note 2 to entry: Technical depreciation are calculated as a ratio of asset replacement value and expected life.
Note 3 to entry: Technical depreciation measures and depicts technical aging of the assets in money terms.
[SOURCE: EN 16646:2014, 3.1.14]
3.1.29
strategic asset management plan
SAMP
documented information that specifies how organizational objectives are to be converted into asset
management objectives, the approach for developing asset management plans, and the role of the asset
management system in supporting achievement of the asset management objectives
Note 1 to entry: A strategic asset management plan is derived from the organizational plan.
Note 2 to entry: A strategic asset management plan may be contained in, or may be a subsidiary plan of the
organizational plan.
[SOURCE: ISO 55000:2014, 3.3.2]
3.1.30
sustainability
state of the global system, including environmental, social and economic aspects, in which the needs of
the present are met without compromising the ability of future generations to meet their own needs
Note 1 to entry: The environmental, social and economic aspects interact, are interdependent and are often
referred to as the three dimensions of sustainability.
Note 2 to entry: Sustainability is the goal of sustainable development (3.2).
[SOURCE: ISO Guide 82:2019, 3.1 ‘Guidelines for addressing sustainability in standards’]
3.1.31
conversion cost
transformation cost
total cost required to convert materials into product or service, excluding cost of raw materials, packaging
and auxiliary materials
Note 1 to entry: Conversion costs are a manufacturer’s production costs other than the costs of raw materials.
3.1.32
useful life
time interval from first use until the instant when a limiting state is reached
Note 1 to entry: The limiting state may be a function of failure rate, maintenance support requirement, physical
condition, economics, age, obsolescence, changes in the user’s requirements or other relevant factors.
Note 2 to entry: The limiting state may be redefined by changes in conditions of use.
Note 3 to entry: In this context, ‘first use’ excludes testing activities prior to hand-over of the item to the end-user.
[SOURCE: EN 13306:2017, 4.16]
3.1.33
key performance indicator
KPI
indicator considered significant
[SOURCE: EN 15341:2019, 3.5]
3.2 Abbreviations
The list of abbreviations used in this document is given in Table 1.
Table 1 — List of abbreviations
Abbreviation Meaning
AHP Analytic hierarchy process
ARV Asset replacement value
FMEA Failure mode and effects analysis
FMECA Failure mode, effects, and criticality analysis
FTA Fault tree analysis
JIT Just in time
KPI Key performance indicator
LCC Life-cycle cost
LCP Life cycle profit
MTTM Mean time to failure
MTTF Mean time to maintain
MTTR Mean time to restoration
OEE Overall equipment effectiveness
PAM Physical asset management
POA Potential opportunity analysis
PPA Potential problem analysis
RA Risk assessment
RBI Risk based inspection
RCM Reliability centred maintenance
SAMP Strategic asset management plan
RBD Reliability Block Diagram
QFD Quality Function Deployment
4 Strategic planning for maintenance within physical asset management
4.1 Strategic asset management plan (SAMP)
4.1.1 Introduction
The purpose of physical asset management is to manage an organization’s physical assets effectively in
order to deliver the objectives of the organization’s strategic plan. Therefore, the organization should
prepare a strategic asset management plan (SAMP) for the physical assets.
Various combinations of organizational, market and technological influencing factors (see Annex C and
Annex D) affect SAMP including required asset solutions (see 3.1.5), operative policies, maintenance
strategies, and replacement / modernizations needs and finally asset disposals. The number of
combinations of influencing factors is theoretically huge, but in practice there is a limited number of
combinations of influencing factors which really matter and make a difference. These differences result
in basic requirements on technical asset solutions establishing the production system of the organization.
However, the real sustainable competitive advantage can be achieved with innovative modes of operation
and technological advancement.
4.1.2 Purpose
Consistent with the definition in ISO 55000:2014 and the requirements in ISO 55001:2014, the SAMP
should fulfil a number of purposes (modified from the complete text of ISO 55002:2018, C.2):
— to detail in documented information the role of the assets, asset management and asset management
system in supporting the achievement of the organizational objectives and to provide clarity and
direction for everyone in the organization from top management to delivery teams;
— to translate organizational objectives into strategic asset management objectives which can have an
impact on the assets and asset management;
— to guide an approach for developing the asset management plans and the asset management system,
while applying the asset management policy to ensure alignment;
— to document the decision-making criteria that enable the definition of value realization for the
organization and its stakeholders and the coordinated approach for performance evaluation;
— to present a consolidated plan at the asset portfolio level for achieving the strategic asset
management objectives and linking these to the organization’s financial plans;
— to present a plan for creating or improving the asset management system in order to ensure that the
required capabilities and resources are available to achieve the asset management objectives.
4.1.3 The content
The organization should determine the areas to be addressed and the level of detail for the SAMP to meet
its specific needs. A list of key areas that should be addressed in a SAMP to meet the purposes is given in
ISO 55002:2018, C.4.
The scope introduces a supporting methodological framework for maintenance within physical asset
management. This document is also a useful guide for many of the issues mentioned in the contents for
SAMP.
Although, the list of contents for SAMP contains elements such as a summary of the organizational plan,
influencing factors, critical success factors and requirements for the assets, they are presented in Figure 3
in separate boxes, as separate issues, because they are important elements of the organizational strategic
plan. Especially, a summary of the organizational plan, influencing factors and critical success factors are
significant inputs for strategy formulation within physical asset management and therefore, they also
should be presented in SAMP. The presentation of the elements will follow the order of Figure 3.
4.1.4 The significance of assets
The significance of assets in delivery of the objectives can vary greatly depending on the products and
services provided. Also, the organizations’ strategic decisions determine the importance of the physical
assets and therefore that of the maintenance activities. As far as manufacturing is concerned, the asset
portfolio and assets within it are crucial in achieving the organizational objectives. The same applies in
many cases also for services. Physical assets contribute to the quality of the organizations’ services or
products. Similarly, they have an influence on costs, performance and risks of the organization. There are
several factors that can define the strategic importance of physical assets e.g.:
Associated with profitability and productivity:
— typical return on physical assets within the sector;
— physical assets turnover, productivity of fixed capital: sales / physical assets (book value);
— required operating rate (at which percentage rate production is profitable);
Associated with-performance and efficiency:
— technical turnover of physical assets: sales / physical assets replacement value;
— productivity of physical assets as a competitive factor in the market;
— significance of physical assets in meeting critical success factors of the organization;
— availability of non-asset solutions;
Associated with cost structure:
— relationship between personnel costs and capital costs;
— fixed capital as a barrier to entry (e.g. minimum effective investment in relation to sales);
— costs of physical asset solutions (very high investment costs may set a barrier to entry and encourage
an organization towards non-asset solutions or avoid an investment).
The organization’s specific significance depends on the critical success factors of the organization and the
production technology in use. The asset portfolio supports the organization in delivering identified
critical success factors and requirements. Maintenance has a strong role in realization of the effects of the
physical assets on the delivery of organizations objectives. Maintenance activities should improve the
performance and cost efficiency of the organization. Effective maintenance activities can increase the
potential for higher sales by increasing OEE (overall equipment effectiveness), and therefore the capacity
to produce higher volumes. The same chain of influence decreases a need for new investments, and
therefore results in lower depreciation. Finally, effective maintenance decreases a need for capital in
terms of fixed assets and inventories and therefore results in a higher return on the asset portfolio. In
addition to the above influences, maintenance can realize the capability of the asset portfolio to create
improved reliability of the product deliveries and meet other success factors.
4.2 Developing AM policy, SAMP and AM plan
4.2.1 Introduction
Figure 3 shows how maintenance is embedded in asset management and strategy development and in
the deployment process of the organization. Typically, this process is triggered annually. On the corporate
or site level, critical success factors are identified and the corporate policy, organizational plan,
organizational objectives are defined. The policy contains the perpetual principles of the organization
and acts as the frame for the development or revision of the organizational plan. This plan considers the
demand from the market and the surrounding community as well as the opportunities and challenges
coming from:
— the fulfilment of the objectives of the prior organizational plan;
— the characteristics of the organization;
— the existing implementation of the asset management policy, the strategic asset management plan
and the achieved asset management objectives based on the available, implemented asset portfolio;
— available technology on the market.
This internal and external context of the organization is described thoroughly in Annex B and C. Beside
the current situation, future developments should be taken into consideration. For example, the potential
reaction of the market to providing new products and services should be estimated in this development
activity.
Figure 3 — Strategic asset management process
The critical success factors result from analysis of the context of the organization. Thus, they are the
foundation of all further steps. The application of critical success factors is presented in 4.2.4 in detail.
While the organizational plan provides high-level orientation to the organization, the organizational
objectives are the necessary measures for trading progress in detail during deployment. On the one hand
these corporate /site level strategic choices have influence on the further development of the
organization and on the other hand on the asset management system.
The assets can be structured hierarchically within the asset management system at asset portfolio level,
asset system level and as single assets. More comment on linking these terms with existing hierarchical
asset systems can be found in Annex A.
On the asset portfolio level, the asset management policy is developed within the framework of the
corporate policy and describes the perpetual principles of asset management within the organization.
This policy acts as the framework for the development or revision of SAMP. First, the SAMP considers the
requirements on the corporate level. Therefore,
— corporate policy;
— organizational plan;
— organizational objectives; and
— critical success factors;
have direct impact on all strategic considerations at the asset portfolio level. Consequently;
— market;
— community;
— technology;
— organization;
influence the SAMP and the asset management objectives (see Annex B).
Second, because of the iterative nature of the multi-level strategy development and deployment process,
the opportunities and challenges provided by:
— the current set of assets in the asset portfolio and their current lifecycle phase and condition;
— the available technology on the market; and
— the available external services on the market;
are also considered in the development of the SAMP. Asset management objectives help to judge the
success of that deployment.
Maintenance should be involved in these activities at the asset portfolio level as described in EN 16646.
At the asset system level, the requirements derived at the asset portfolio level (asset management policy,
SAMP and asset management objectives) are translated into an asset management plan. The plan
describes the asset-related activities appropriate to the current lifecycle stage. The requirements for
maintenance shall be considered already in the design and implementation stage of asset systems. This
is highlighted in 4.2.6.
For the operation and maintenance stage a specific mix of asset-related maintenance strategies should
be defined based on the requirements from the asset portfolio and asset system levels and the current
asset performance and condition. Consequently, these selected strategies lead into a maintenance plan,
which consists of scheduled and planned maintenance activities. The development of the maintenance
strategy is described in 4.2.7.
All the above-mentioned elements are determined within an uncertain decision-making environment.
Therefore, one of the most important methodological issues in the field of physical asset management is
consideration of uncertainty. For example, an organization does not only meet critical success factors in
a proactive way and try to adapt its mode of operation to market requirements, but it can directly try to
influence market behaviour and future critical success factors in order to decrease uncertainty. However,
many uncertainties exist in both cases, especially regarding turbulent time horizons, and uncertainties
linked to the critical success factors largely determine the effectiveness of the asset and maintenance
strategies and supporting modes of operation. Therefore, 4.3 is dedicated to uncertainty consideration.
The steps of the periodic strategy development process are explained in Figure 4. Details on each step
can be found in the subsequent clauses. The next clause provides examples on the translation of the
elements of the organizational plan into requirements at the asset management level and further at the
maintenance level.
Figure 4 — Maintenance strategy development and deployment
4.2.2 Contribution of maintenance to SAMP
EN 16646:2014 gave maintenance a clear mandate, procedure and obligation to contribute strategic
planning even at its early stages that further improves the quality of asset solutions during the strategic
planning and acquisition stage. It also suggests that organizations should ensure that interrelationships
between the maintenance and other life-cycle processes, such as all acquisition, operation,
modernization, disposal, management and support processes are organized in the way that it guarantees
contributions between the processes according to 6.3 in EN 16646:2014. This procedure ensures that the
relevant expert judgement, experience, benchmarks and event history can be taken into account starting
from the concept definition, chosen asset solution and detailed planning phases regarding e.g. availability,
reliability, maintenance costs, maintainability, competences, availability of required resources, safety and
environmental issues. A methodological framework for the contribution will be presented in Clause 5.
4.2.3 Elements of strategic planning process and their effects on maintenance
The essential elements of an organization’s strategic plans and their role in connection to physical asset
management and maintenance are presented in Annex E. These overviews summarize the analysis of
organizational context. Organizational context is not a static state of affairs, but dynamic and
continuously changing. Moreover, different life-cycle stages of products and production assets should be
considered.
4.2.4 Critical success factors and requirements
Organizations should determine the critical success factors for their business activities. The identified set
of critical success factors defines the requirements for the management of the assets (Additionally, this
topic is discussed in ISO 55002:2018 Annex D). At the asset portfolio level, organizations can have
general critical success factors such as image, brand, environmental principles, and some general
strategic principles, although the products and markets of different production plants differ. The specific
critical success factors depend the technological and business environment of the organization and they
can be, for example, scale economics, technology leadership, high operating rate, reliability of deliveries,
quality of the products, low price, high market share, product leadership, etc. Cost-cutting and
operational efficiency are even more important, in the cases, when the prod
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