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Integrating Performance Standards into an Asset Management System
Leveraging ISO 55000 in the Oil and Gas Industry

The discipline of physical asset management is currently undergoing substantial change. Nowhere is this change evolving faster than in the oil and gas industry. Two significant developments within this industry are converging to create shifts in how companies view and manage their physical assets. The first of these developments is predictably value and safety-related. Companies are challenged to create, implement and maintain robust reliability and maintenance-based performance standards critical to detecting and preventing catastrophic equipment failures. The second development is the newly released ISO 55000 Asset Management System Standard. This standard defines the minimally accepted criteria for establishing a management system for asset management.

Both the performance standards and the ISO 55000 Asset Management standard share the common objectives of achieving value from assets and optimizing cost, risk and performance across the lifecycle of the asset. This presents an excellent opportunity to improve the quality and overall impact that performance standards have on the business through the integration with the ISO 55000 standard and the leveraging of the asset management capabilities that are foundational to an ISO 55000 compliant asset management system.

The ISO specifies that organizations develop an asset management policy linked to its strategic plan. The asset management policy is supported by an asset management strategy. This strategy typically identifies an implementation framework where defined capabilities result in establishing key asset management objectives. These SMART objectives are necessary to achieve select aspects of the organization’s strategic plan (reference Figure I). Establishing oil and gas performance standards represent such an objective. The performance standards, moreover, comprise much of what can be considered as an asset management plan (reference Appendix A for a performance standard example).

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