ISO 55001 Certification: How It Helps in Effective Asset Management
Summary:
This article aims at explaining how ISO 55001 certification for asset management system helps businesses gain competitive advantage with proper management of their resources or assets.
Business assets can be of various types or sizes and organisations need to manage them in an optimised way to prevent draining their value over time. Effective administration of assets must be an integral part of the business management for organisation to improve or retain its financial performance. That is why ISO 55001 have become a significant standard to achieve for businesses today! ISO 55001 certification can be said as the benchmark achievement for businesses. The certification aids in implementing a definite asset management system to take care of their assets and optimise their values in the long run. Businesses that are capital intensive i.e. highly depend on physical assets for their operations need a standardised asset management system (AMS) in the first place. Their assets are huge too. They include manufacturing firms or plants, heavy machinery, construction setup, property or buildings, distribution and transportation modes. Effective asset management ensures that the large fixed costs incurred in managing all these assets are recovered from the return or value from their uses.
ISO 55001 helps organisations, both capital intensive or non-capital intensive, to have a systematic approach to assets management via a strong AMS and ensure continual growth of their financial performance. Here is explained how.
Establishment of a Comprehensive Management System
To achieve the ISO 55001 standard, an organisation needs a robust AMS which cover all types and sizes of business assets. Organisations with a mixed portfolio of physical and intangible assets can be also able to implement the AMS. To establish a comprehensive management system, organisations need to frame a policy, understand and define their portfolio, facilitate internal communications and assign roles to their staff concerning the management of assets. To put simply, the standard helps organisations to have a simplified and inclusive approach to asset management, which helps them to manage assets, keep records of their performance, identify risks and protect them.
Better Management of Risks to Asset Value
When an AMS ensures better governance and control of the assets, it minimises risks to their value. As the organisation is able to continuously evaluate its assets portfolio and their performance, any risk can be identified at its source and prevented at the earliest. Other important ways for assessing risks under an AMS are analysing employee feedback, identifying causes of process delays or downtime, evaluating the financial market values, and assessing the supplier processes. With effective management of the asset values, an organisation can ensure reliability of its assets, raise confidence in its stakeholders, and can also lower its insurance costs.
Operational Excellence
Managing assets in a systematic way helps ensuring both process safety and employee wellness. With responsive risk management, failures of physical assets (plant machinery, equipment, spares and vehicles) are reduced significantly. The risks of injuries to employees or any catastrophic events are prevented. This ensures uninterrupted flow of operations and increased confidence in employees while delivering their responsibilities. As a result, there is an improvement in both operational efficiency and employee performance.
Strengthening of Corporate Image
An organisation’s unfailing commitment to managing its assets and minimising the risks can cement its reputation or brand image in the industry. ISO 55001 standard clearly indicates an organisation’s capability in implementing the best practices for asset management, no matter what is the nature or size of its asset portfolio. An ISO certification is the most credible one and hence offers transparency to the stakeholders as well as competitors in the industry. Having an international asset management certification enables an organisation to attract opportunities for trade/contracts from several businesses because their assets possess lesser risks and costs. When higher returns are assured from the assets, it is likely to improve the bottom line of an organisation which naturally benefits its partners.
Achieving the ISO 55001 certification can be a big milestone for your business’s financial performance. It necessitates the implementation of a feasible asset management system that helps in the development of a uniform policy, organisation of an asset portfolio, optimisation of asset performance, and increasing ROI (return on investments). The certification also provides transparency to the stakeholders regarding asset management procedures and can strengthen the reputation of your business. In a nutshell, the certification enables you to manage the value of your assets throughout their lifecycle by cutting off the potential risks.
Author Bio:
Damon Anderson is the owner of an ISO certification consultancy that provides all-round assistance to businesses to achieve certifications including ISO 9001, ISO 45001, ISO 27001, ISO 31000, ISO 55001 certification and many more. He is a blog writer in his free time and likes to pen down his knowledge on different ISO standards, their benefits to businesses and processes for achieving compliance.
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