The Benefits of Asset Management and ISO 55000
The implementation of an asset management system can help an organization achieve formal compliance with ISO 55000 and enable the realization of value. Most of us will intuitively agree that a good asset management system can only be beneficial for the company. The general benefits identified by the IAM and by ISO are:
- improved financial performance
- informed asset investment decisions
- managed risk
- improved services and outputs
- demonstrated social responsibility
- demonstrated compliance
- enhanced reputation
- improved organizational sustainability
- improved efficiency and effectiveness
The long-term nature of asset management makes quantifying such benefits challenging—some benefits can take years to materialize but will have a significant impact on the company. Nevertheless, there is growing tangible evidence that good asset management provides a significant return on investment. Examples in the electrical sector include:
- AES Tiête in Brazil, an operator of hydro-electric power stations, reported a 75% reduction of unplanned shutdowns, a reduction of insurance costs of 14% thanks to better risk management, and cost savings in excess of $2M per year.
- China Light and Power in Hong Kong achieved a 90% reduction in system losses and a 40% reduction in rates charged to its customers.
- Power transmission operator ISA in Colombia reported a 40% reduction in maintenance and reliability costs, while reducing network failures by 10% and energy not supplied by 80%. This resulted in a $40M benefit in the first 5 years of ISA’s asset management journey.
- Power utilities in the Netherlands were early adopters of asset management and have collectively achieved equally impressive results: safety improved by 75% and cost savings have allowed significant drops in customer rates while maintaining high system reliability and without changing the overall profitability to shareholders.
Asset management is becoming strategically important for asset-intensive companies around the world. The examples above show the significant benefits that asset management can bring through a better balance of costs, risks, and performance.
In this webinar recap, Carmen Benoit, Asset Management Strategy and Planning Manager at Enbridge, explains how the implementation of the Copperleaf® Decision Analytics Solution drove an enterprise-wide asset management transformation, which enabled the company to realize 15% more value from its investment portfolios and secure a 30% increase in maintenance capital spend.
In my next article in this series, we will explore ISO 55001 and decision making in more detail.
Learn more about how Copperleaf’s Decision Analytics Solutions align with ISO 55001.