Since its creation in 2004 (and revision and re-issue in 2008), PAS 55 has defined the requirements for best practice in asset management. The new standard, ISO 55000, will differ from PAS 55 in structure and content and has been described as a “revolution” not an “evolution”, explains Gary Jerome, MRICS, Practice Leader – Asset Management Strategy and Planning, Sinclair Knight Merz.One of the key differences between the PAS 55 and the ISO 55000 approach is the scope of the asset management system. While PAS 55 primarily focused on physical assets, ISO 55000 will also focus on organisational objectives and purpose of assets. This is in line with SKM’s approach to performing assessments under PAS 55, for which our assessments focused across the entire asset management value chain. Although the underlying philosophy of the two approaches may be different, the intent to provide a measure of best practice in asset management remains.How does this sit within the PAS 55 asset management life cycle? The ISO 55000 is presented in three parts – an overview, requirements, and implementation guidelines:ISO/DIS 55000: Asset management – Overview, principles and terminologyISO/DIS 55001: Asset management – RequirementsISO/DIS 55002: Asset management — Guidelines on the application of ISO 55001The standard document is still under discussion and is due to be formally ratified by the International Organization for Standardization (ISO) in 2013.ISO 55000 will be an umbrella document that will align with a company’s business objectives and asset management policies and objectives. More than just a plan, it will critically assess and measure performance, and be viewed as a credible and uncompromising tool to assess business performance.Compliance to ISO 55000 will require a whole-of-life approach, and consider all assets, including companies’ intangible assets, such as reputation, brand and intellectual property.The Institute of Asset Management (IAM) will withdraw PAS 55 when ISO 55000 is published. However, there will be an 18-month “sunset period” to enable companies to transition from PAS 55 to ISO 55000 accreditation.For organisations moving from PAS 55 to ISO 55000 there will need to be fundamental change in the way assets are actually managed to demonstrate compliance to the new standard rather than simply adjusting processes and policies are in place. The reporting and validation requirements will change; however, the information required should remain the same for both.SKM has helped clients improve their asset management practices for many years and will continue to help them assess their asset management practices or obtain accreditation to PAS 55 and ISO 55000.SKM’s broad expertise in asset management was recently showcased at a electric utilities forum in Bangkok, which was attended by representatives from major utilities from across Asia, including Thailand, Vietnam, Laos and the Philippines.Senior Executive Engineer – Power Networks and PAS 55 endorsed assessor, Terry Krieg, presented case studies on two major asset management audits of substations and distribution assets in Australia’s remote Northern Territory and a metropolitan location in Adelaide, South Australia.SKM is an endorsed PAS 55 assessor and will seek endorsement as an assessor under ISO 55000 to continue to help clients achieve the highest standards in infrastructure asset management.Both PAS 55 and ISO 55000 are relevant to natural resource industries and are applicable to both regulated and un-regulated business, privately or publicly owned. The specification and the new standard are important guidelines for any organisation seeking to demonstrate a high level of professionalism in whole-of-life-cycle management of their physical assets.SKM retains a number of endorsed and trained auditors throughout the firm (Adelaide, Auckland, Brisbane, Darwin, Kuala Lumpur and Newcastle-Upon-Tyne) who can provide gap analyses and certification of an organisation’s asset management systems to PAS 55 and, shortly, to ISO 55000. Endorsed assessors such as SKM have developed specialised tools to help evaluate client processes and systems.