Introduction

Every
organisation requires its assets to achieve its objectives and deliver its
plan. One of the greatest challenges has been an increasing needs and
expectations from regulators, customers and stakeholders. In order to satisfy
these needs, an effective control and governance of assets need to be
implemented.

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In
the recent years, many organisations have begun to realise the significance of
asset management as an enterprise strategy that, if properly implemented, will
improve financial performance of an organisation. Since the introduction of
International Standard PAS 55 in 2008 and ISO 55001 later in 2014, many
organisations in various industries have adopted these sophisticated approaches
to asset management.

As
an asset-intensive company, the function of asset management permeates many areas of the Jemena
business. Jemena recognised the need to put in place a standard and consistent framework
to promote good asset management practice in the facilities management business
in order to retain the business with existing clients as well as secure new
business. Moreover, assets being the core component in the business, the
discipline of asset management is an enabler for the business to realise a value
through managing risk and opportunity, in order to achieve the desired return
from the asset portfolio.

 

What is Asset Management

Asset
Management is the coordinated activity Jemena undertakes to realise value from
assets. It involves the balancing of costs, opportunities and risks against
performance of assets to achieve Jemena’s Business Plan.

 

Benefits of having effective
asset management

There are a number of compelling
benefits for having the right asset management system.

 

With effective asset management, alignment
of processes, resources and functional contributions are promoted, creating a
transparent audit trail for what is done, when and why. Thus, allowing an
organisation to direct, coordinate, control and monitor asset management
activities at different levels throughout an asset’s whole life. Optimised asset
management also boosts workforce engagement. This includes leadership, communications
and cross-disciplinary teamwork. Most importantly, it enables an organisation
to achieve its objectives sustainably over time and ultimately maximises
value-for-money and satisfaction of stakeholders’ expectations.

 

To summarise, an asset management system is a great tool for deriving
value from the assets, streamlining processes involved, and achieving business
excellence.

 

China Light
& Power or CLP is one of the largest investor-own power business in Asia
Pacific. Its operation includes generation, transmission and distribution, and
retail. For over a decade, CLP has been following a structured plan of
coordinated improvements in asset management, achieving PAS55 accreditation in
2007 and 2010. The impact of integral AM was measured in 2011: 90% reduction in
system losses, while meeting a 20% growth in demand, expanding its asset base
by 25%  and, simultaneously, reducing
customer charging tariffs by 40%.

 

Similarly, Sodexo,
a facility management company, has also claimed that an asset management approach
is very efficient. At the time that Sodexo obtained an ISO 55001 accreditation
in 2015, it was observed that:

• Improved control of day-to-day
activities and business efficiencies – 7-8% average improvement

• 40% reduction of risk-related
costs

• 100% compliance in regulatory
activities

• Reduced failure rates – 20%

 

In
support of the importance of the discipline of asset management, a British
specification for good asset management, PAS 55, was first developed in 2004
with global input from many different industries. PAS 55 outlined the
requirements of an AMS in order to support the achievement of organisational objectives. In January 2014, the international
standard, ISO 55001 Asset Management was launched and has now replaced PAS 55.

 

ISO 55001

ISO 55001 Asset Management is the latest international best
practice in the management of physical asset, outlining specific requirements
of an AMS. It describes the benefits of adopting the standards: “… enables
an organization to achieve its objectives through the effective and efficient
management of its assets. The application of an asset management system
provides assurance that these objectives can be achieved consistently and
sustainably over time.”

 

Why Certification?

A major
focus of Jemena’s strategy is investment in its infrastructure, maintaining and
upgrading its physical assets to assist in the provision of gas and electricity.
An ISO 55001 certification will be excellent indication that Jemena has achieved
a high degree of professionalism in the optimised asset management, committing
to produce high quality products safely, efficiently and sustainably.

To be ISO
55001 certified, Jemena must be able to: demonstrate we understand the
environment in which we operate; understand what customers and stakeholders
require from us; show how we deliver on their requirements; and show how we
report back.

Being able
to demonstrate these abilities will provide confidence to the customers that
Jemena is managing its assets efficiently to ensure the certainty of supply,
quality and charges. It will also serve as an assurance to the regulators that
Jemena is committed to doing its best to achieve optimal value from its assets in
order to keep the average household bills reasonable.