PAS-55 The New Standard to Optimize Critical Assets' Performance
This is the new standard of asset management. It originated in Great Britain in 2008 in a joint effort of the Institute of Asset Management and the British Standards Institute (BSI).
PAS-55 Fundamental purpose:
To Systematically Reduce the Failure Risk of the Critical Assets through the Application of Optimal Practices.
(PAS: Publicly Available Specification) Having been initially created to give assurance of services in the generation and distribution of electricity in Great Britain, PAS-55is becoming the international standard of quality in the maintenance of assets. In America, IBM has been a pioneer of these optimization principles with its Asset Management Center of Excellence for two decades now.
PAS-55 establishes the Criteria to improve the Maintenance procedures that will render a higher reliability on the Critical Assets that Companies require in order to perform at their best according to their mission and needs.
For example: The power companies analyzed which components in their Generation and Distribution processes were critical to provide the service. Then they focused on the root cause of each historical failure. This allowed them to bring the attention of the whole organization and engaged all their members to implement the Optimal Practices in their hands and knowledge that would prevent those root causes.
In a few lines: PAS-55 is about establishing what are the Optimal Practices that are applicable in each Case covering throughout their life cycle, from its inception until their disposal, of the Assets of the Company:
Real estate: buildings, offices, plants, workshops, warehouses
Vehicles and Mobile Machinery
Intelligence and Information Technologies
PAS-55 defines that it is not only about the Maintenance of Assets. PAS-55 goes beyond. PAS-55 involves establishing a corporate culture where each Member of the company has clear awareness of reputation, public image and responsibility in the social impact of the company.
PAS-55In the financial aspect:
Life cycle cost Investment criteria Cost of operation
PAS-55In the human aspect:
All staff motivation Skills in constant development Shared accountabilities Leadership and strength of human teams across the Organization
This implies to also comply with ISO-9001 (International Standardization Organization), and OSHA (OHSAS-18001) standards, in terms of health and personal safety.
In fact this is not only about "Best practices" but about the "Best of Practices, or Optimal Practices." Not only: How can you improve it? But: What is the best thing you can do?
Recently it has become more obvious the fact that "Assets Management" is a matter of growing importance. This is the result of the rapid evolution of these assets. Every day we have more complex machines and equipment, smarter processes, more up-to-date buildings to serve these needs, and a labor force (at all levels), which is under pressure from all these factors. The incidence of matters relating to the assets brought to discussion on the management boards is growing. There is greater awareness than ever before about the vital importance of preserving assets in optimal condition for as long as possible and at the lowest possible cost. There are already several World-Class companies which have in their caucus a CAO - Chief Asset Officer. The developers of EAM-Enterprise Asset Management systems are already in the process of implementing and incorporating this new standard. The result of all this effort has been already measured in two fundamental aspects for all businesses:
Reduction of Costs, and Products-Services' Improvement.
Aside of the regulatory side of PAS-55which will keep advancing as a requirement to do business Worldwide, there are some positive side effects of its Implementation: When avoiding the risk of vital equipment failure, this obviously extends the life of these assets and reduces their costs of maintenance and operation.
This in turn allows companies to deliver a better product or service to their customers. Often the price of their products and services can be reduced proportionally which in turn will reach a wider market. (The market expands by 20% for each 10% price reduction).
Assurance of PAS - 55
Obviously there are certain prerequisites for the implementation and maintenance of this Standard:
Achieve best practices in Asset Management Develop a complete map and integrated database to create a strategy of actions aligned with the General Strategy of the Organization. Taking into account real life cycles of each asset and management processes. Change the concept of active life and replacement from "time-based" to " risk-based management." Define a complete co-responsibility at all levels of the organization. Establish a platform or Knowledge-Center about assets. Ensure that this culture permeates to all corners of the company. Verify that everyone in the organization understands the purpose and methods.
PAS-55in the Future…
There is no doubt that this standard will continue to evolve, what gives us the opportunity to keep the knowledge of the system in constant progress. The behavior of all members of the company aligned in the right direction will allow that applied practices become better every day.