ISO 55001: a standardised and internationally recognised framework for physical asset management

ISO 55001: a standardised and internationally recognised framework for physical asset management

Physical Asset management is a clever method for optimal management of physical assets. It applies principally to buildings, infrastructure, facilities, equipment and machinery. Asset intensive sectors such as oil and gas, power and utilities, public, chemical, maritime, transport, manufacturing, engineering, construction and infrastructure will benefit from the implementation of asset management.

Why is asset management so important?

Asset-intensive organisations invest huge amounts in a wide range of assets, including buildings, infrastructure, plant, equipment and machinery. It is therefore important to ensure that these are optimally used.

  • If you sweat your assets too much they will break down, causing costly delays and necessitating expensive repairs and replacements.
  • If you leave them idle, then valuable capital is tied up unproductively.

Asset management provides both financial and non-financial long-term sustainable value creation. This is due to improved operational efficiency from a strategic-tactical multidisciplinary perspective. It also reduces the risk of interruptions and delays. Poorly maintained assets may result in additional risks to your employees.

What is ISO 55001?

The ISO 55001 standard for asset management provides asset-intensive organisations with a standardised and internationally recognised framework for (physical) asset management.
Some of the benefits of ISO 55001:

  • Better performance by improving the return on investment.
  • Increasing the value of assets for any organisation throughout its lifecycle.
  • Controlling risk and contributing to the sustainable use of assets.
  • Increased effectiveness and efficiency of asset management and therefore better service and reputation.

In addition, asset-intensive organisations can have their asset management system certified to the ISO 55001 standard. The possession of an ISO 55001 certificate can be utilized as part of the marketing strategy and as a differentiating factor.

Click here to read the full article in which Daniël Pairon, Global Lead Partner KPMG Asset Management and founder of the Asset Management Competence Center, explains the ISO 55001 standard from a global perspective.