Delegate Workbook - ISO 55001 5 Days Course-SHS-Jun

Key Elements of Auditing BS ISO 55001:2014
Lead Auditor/ Auditing for BS ISO 55001:2014
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Copyright © 2014 BSI. All rights reserved. ASM12501ENGX
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ASM12501ENGX v1.0 Jun 2014 Copyright © 2014 BSI. All rights reserved. 1
Welcome
Don’t forget to
mute your
microphone when
you are not talking!
Are your speakers,
microphone and camera working?
Can you see the screen clearly?
Remember to
put your camera
on after breaks!
Breakout rooms and whiteboards available
no
yes
Raise hand and chat

functions available
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Copyright © 2020 BSI. All rights reserved.
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Please be considerate of other delegates and mute your microphone when not talking.
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This avoids any background noise and any personal electronic devices beeping etc.
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Please put your camera on now, so that everyone can see who is in the training room.
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This will also help during your introductions.
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Course Aim
• This course provides key guidance and

practical experience in planning, executing,
and reporting Management System audits
of Asset Management.
The delegates are expected to:

- Understand the asset;
- Understand the asset management system;
- Understand the requirements of ISO 55001:2014.
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This innovative, one-day course provides a solid foundation in key aspects of auditing against
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BSI ISO 55001:2014. Delegates are taken through a structured programme that includes a
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balance of theory and practice using a combination of collaborative learning and practical
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activities. 55
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Aim : maksud
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Learning objectives
Explain the purpose of:

Have the skills to:
• An AMS
• Plan
• AMS standards
• Conduct
• Management system audit
• Report, and
• Third-party certification
• Follow-up…
• Business benefits
KNOWLEDGE SKILLS
…an audit of a AMS to establish

Explain the role and responsibilities
conformity (or otherwise) with
of an auditor to plan, conduct, report
ISO 9001 and in accordance with ISO
and follow-up a AMS audit in
19011, and ISO/IEC 17021, as
accordance with ISO 19011, and
applicable.
ISO/IEC 17021, as applicable.
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Learning objectives describe in outline what delegates will know and be able to do by the
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end of the course.
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On completion, successful delegates should gain the displayed knowledge and skills. 55
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Course methodology
Delegate
Interactive centred
Activity
Collaborative
based
Realistic
case study
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As auditing is a practical activity, and involves finding things out, this course is very
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interactive in nature. Many activities have therefore been included where delegates will
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collaborate in pairs/teams to create knowledge, rather than purely information
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provision/discussion sessions from the tutor. This will greatly enhance your knowledge
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retention, and provide an opportunity to discuss topics from other team members’
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perspectives. The tutor will facilitate this learning, as appropriate. Team members will also
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be swapped around, to ensure valuable existing knowledge and experience is shared

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between delegates.
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Do not concern yourself with the size of the case study; as your tutor will explain how
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auditors would deal with this when auditing in a real life environment.
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Course Content
Day 1 Audit Terms and Concept

Day 2 Audit preparation and opening meeting
Day 3 On-site audit activities
Day 4 Closing meeting and audit report
Day 5 Examination
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All these topics will be covered progressively throughout the course,
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with tutorials and exercises.

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Unless otherwise stated, the material presented will be based on 3rd

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party auditing practices.

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Emphasize the need for delegates to fully participate in all discussions

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and activities.
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Emphasize also that this is a lead auditor course being presented by

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BSI, it is NOT a BSI lead auditor course. Some delegates may have
experienced differences in interpretation of some of these aspects.
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This concludes module 1.

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Course Content

Day 5 Examination
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Exercise 1 – Delegates Introductions
Work in pairs and interview each other to get information in

line with the following bullets. Take appropriate notes, then
introduce your partner to the remainder of the group.
• Name
• Company: products/service
• Position
• ISO 55001 knowledge (1 to 10 scale)
• Audit experience (1 to 10 scale)
• Interests
• Expectations for the course
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This slide gathers the individual information from delegates.
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Name – check spelling for certificate.

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Company – product or service they provide.

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Position in the company and experience.

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ISO knowledge to help tutors in group selection

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1 = Very little knowledge

3 = Can understand parts of the standard
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7+ = Has worked in QA etc.

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Hobbies as an ice breaker and to put delegates at ease.

Tutor should compile list of teams for the course exercises
Maximum per team – 5.
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Key Terms
• Quality
• Degree to which a set of inherent characteristics fulfils
requirements
• Process
• Set of interrelated or interacting activities which transforms inputs
into outputs
• System
• Set of interrelated or interacting elements
• Management system
• System to establish policy and objectives and to achieve those
objectives
Refer to ISO 9000:2015 for definitions
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The ISO 9000:2015 definitions.
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Quality : Degree to which a set of inherent

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characteristics fulfils requirements

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Sejauh mana seperangkat karakteristik yang melekat memenuhi

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persyaratan
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Process : Set of interrelated or interacting

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activities which transforms inputs into outputs

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Serangkaian kegiatan yang saling terkait atau berinteraksi yang

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mengubah input menjadi output

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Set of interrelated or interacting

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System :
elements
Rangkaian elemen yang saling terkait atau berinteraksi
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A Process
MANAGEMENT
INPUTS ACTIVITIES OUTPUTS
RESOURCES
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M.A.R.I.O.
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Audit definition - Reminder
3.1 systematic,
independent and
documented process
for obtaining objective
evidence and
evaluating it objectively
to determine the extent
to which the audit
criteria are fulfilled
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Some reminders of the notes accompanying 3.1 audit definition in ISO 19011.
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Note 1 to entry: Internal audits, sometimes called first party audits, are conducted by,
or on behalf of, the organization itself.
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Note 2 to entry: External audits include those generally called second and third party
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audits. Second party audits are conducted by parties having an interest in the
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organization, such as customers, or by other individuals on their behalf. Third party

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audits are conducted by independent auditing organizations, such as those providing

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certification/registration of conformity or governmental agencies.

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***This course is aimed at 1st and 2nd party auditors, and not 3rd party
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certification/registration organizations subject to ISO/IEC 17021-1, IAF

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MD4: 2018 IAF Mandatory Document for the use of Information and
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Communication Technology (ICT) for auditing/assessment purposes, or IAF

ID 3: 2011 IAF Informative Document for the Management of Extraordinary
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Events or Circumstances etc.

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Audit process
Similarities – First, second and third-party
certification audit
INPUTS AUDIT ACTIVITY OUTPUTS
EVALUATION
AUDIT CRITERIA
(REQUIREMENTS) Stage 1
Assessment Report .
AUDIT EVIDENCE
(OBJECTIVE EVIDENCE)
AUDIT
FINDINGS
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Audit Process, (Generic) to any management system audit, is shown above.
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Also there are three main dimensions to auditing:
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• Assessment of the documented management system (INTENT)
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• Assessment of the degree of implementation (IMPLEMENTATION)

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• Assessment of the QMS effectiveness (EFFECTIVENESS)

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Intent
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Does Top Management intend to implement a QMS? If so, how is this intent demonstrated?
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Conformance with the minimum documented information requirements of the standard; as

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auditors we need to know that the organization has planned to meet the requirements.
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Implementation
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Does the implementation of the QMS reflect the intent of Top Management?
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Conformance here is all about checking if activities are as they are supposed to be, following
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processes, policies, protocols etc.

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Effectiveness
Is the implementation effective (i.e. does it meet the parameters established by the intent?).
Conformance here is in the effectiveness of the management system – is it on target to
deliver the organization's policy, objectives and customer’s requirements?
Improvements - as auditors we want to see that the system is healthy and self-healing; if
there are problems they are addressed, and that there is a continual focus on how the system
could be improved for the purposes of customer satisfaction.
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Definitions
• Conformance Auditing – a test of

compliance to stated requirements and
should test the effectiveness of the system
under review
• Process Auditing – an evaluation of the
process(es) and their interaction to ensure
that they are in line with business
objectives and effective in achieving
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planned results
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Conformance auditing is often seen as yes/no auditing. This is often
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low level and is frequently of low value to the business as a whole.

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Process Assessment is an assessment; an evaluation of the process to

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deliver what is required in business terms. It will identify areas for

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improvement even if all the steps within the process are being carried
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out correctly.
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This change is small but fundamental to all existing auditors. Auditors

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will not be limited to yes/no but will be expected to add value by

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evaluating the processes’ effectiveness and efficiency.

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Objective Evidence
• Data supporting the existence or verity of something – ISO

9000:2015
• May be obtained through observation, measurement, test
or other means
• May be stated or (preferably) documented
• Can be verified
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Auditors gather information by seeing and hearing.
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Statements can be considered as objective evidence when made by

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those responsible for the activity being audited – admissible

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statements.
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Whenever possible, auditors should gather material or documented

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support for the statements made.

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If found, nonconformities shall be quantified to enable the auditor to

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communicate the depth of the problem to the auditee.

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Specified Requirements
• Customers and/or Stakeholders (interested parties)

requirements
• Quality and/or Asset Management System requirements,
example :
• Manuals
• Procedures/work instructions
• Quality and/or Asset Management standard
• Legal requirements - statutory, regulatory or industry body
• Regulations of registration body
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Specified requirements are not limited to the ISO standard.
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The scope and purpose of the audit will assist the identification of
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specified requirements.
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The criteria for the audit is dependent upon the purpose of the audit.
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Regulations of registration body only apply if an organization is seeking

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registration.
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First, second and third-party audits
First-party: Second-party: External Third-party:

Internal audit Provider audit, or other Certification or statutory
interested party etc. and similar audit
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First-party - Internal
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A first-party audit is an audit conducted by an organization on itself, to determine whether
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their systems and processes are consistently improving their ability to provide services to
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customers and users, and as a means to evaluate conformance with their processes and the
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standard. Internal audits are a requirement of ISO 55001 Clause 9.2.
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Second-party – External provider audit, or other interested party audit

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A second-party audit is that carried out on a current or potential external provider by a

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purchasing organization; audit results may then be used as part of the purchasing equation.
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This is just one method of complying with ISO 55001 Clause 8.3. Outsource user must
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consider how much assurance is needed for a particular product, service or project. By
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consideration of a number of factors, a decision can be reached as to the relative importance

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of the external provider having a fully compliant system. This could mean that even if an
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external provider had a very attractive price and delivery, they would not be given a contract
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where risk was involved due to weaknesses in their Asset Management System.
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Third-party – Certification and/or accreditation, or statutory, regulatory and

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The third-party ISO 55001 certification scheme was designed to reduce, and perhaps remove
the need for many second-party audits, by providing a list of organizations whose systems
had been assessed and shown to be in conformance with ISO 55001. The assurance thus
provided to potential customers would mean that they might not have to audit external
providers themselves, providing that the assurance given by the third-party satisfied their
needs. It is becoming increasingly common that a purchasing organization will not even
consider a tender from an external provider unless they are certified to ISO 55001.
An organization may also invite an independent body (e.g. a consultancy) to audit their
management systems for a purpose other than certification, e.g. an evaluation of statutory
and regulatory requirements applicable to a product (7.5.e), or to assess the effectiveness of
a particular process etc. This could also be considered a third-party audit, from the
perspective of the consultancy and the organizations.
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Activity 1
Differences between first, second

and third-party audits
10 minutes
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[Please keep in mind, for all activities on this course: There may be more than one ‘correct’
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answer. Try to identify the strongest or most direct answer in each case, and be prepared to
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consider, defend, or rebuke alternate answers raised during class discussions.]
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Activity 1: Differences between first, second and third-party audits
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Purpose:
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To explain the differences (approach, duration, formality, objective etc.) between first, second
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and third-party certification audits of management systems.

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Duration:
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10 minutes in pairs
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10 minutes classroom discussion/review model answers

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5 minutes reflection/application to own workplace

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Directions:
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The tutor will label three flip charts with: ‘First Party Audits’, ‘Second Party Audits’ and ‘Third-
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Party Audits’.
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In pairs, try and think of the differences between these audit types (approach, duration,
formality, objective etc.) Record, as many as you both can think of, onto ‘Post-it/Sticky
Notes’, and affix to the appropriate flipchart.
The tutor will then review your feedback.
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Asset Management System Audit
Three aspects to be evaluated

1) INTENT – extent to which the AMS, as it is intended
to operate, is appropriate to the organization’s
activities and such as to ensure compliance with
regulatory and customer requirements
2) IMPLEMENTATION – extent to which the AMS is
implemented in practice
3) EFFECTIVENESS – extent to which AMS objectives
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Tutorial sessions require delegate participation for maximum value to be
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Questions should to be encouraged.
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The practical exercises are part of the learning process, therefore

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Case study work involves activity outside the normal course hours.
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Role plays are for emphasizing learning points and are not an excuse for
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the tutor to demonstrate their knowledge.

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The examination is a test of the delegate’s understanding of the practices

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and principles of auditing and not a test of memory.

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During the examination the delegate my have available for use

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the course manual, any personal notes made during the course
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and a copy of ISO 9001:2000 (or ISO 9004:2000) .

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Exam duration is 2 hrs.... but 2.5 hrs. for those whose first language is
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not English, except when the examination has been translated into the
local language.
For delegates who have recognized reading difficulties, a dictionary is also
permissible.
Throughout the course, delegates will be continually assessed on their
contribution to discussions (including during breakout sessions),
timekeeping (including returning from breakout sessions) and attitude.
These three dimensions must be explained.
Intent : maksud
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Extent : jangkauan/cakupan
Tiga aspek yang akan dievaluasi

1) MAKSUD - sejauh mana QMS / AMS, seperti yang dimaksudkan untuk
beroperasi, adalah tepat untuk kegiatan organisasi dan seperti untuk
memastikan kepatuhan dengan persyaratan peraturan dan pelanggan
2) IMPLEMENTASI - sejauh mana SMM / AMS diimplementasikan dalam
praktek
3) EFEKTIVITAS - sejauh mana tujuan SMM / AMS tercapai
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ASM12501ENGX v1.0 Jun 2014 Copyright © 2014 BSI. All rights reserved. ‹#›
Activity 2
Typical audit activities
10 minutes
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Activity 2: Typical audit activities
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To explain the audit process. 55
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10 minutes in groups
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Directions:
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The tutor will provide each group with a pack of cards. Please try and arrange these into a
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logical process to explain the sequence of activities that are involved in a generic
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management system audit. Please resist viewing the forthcoming slides!

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THESE CARDS WILL BE USED AGAIN FOR THE NEXT ACTIVITY – SO PLEASE KEEP THE
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CARDS ON YOUR DESK IN THE FINAL ORDER CHOSEN.

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Cards cover the below activities: (in no particular order!)
Header cards:
Conducting audit activities
Conducting audit follow-up
Completing audit
Initiating audit
Preparing and distributing audit report
Preparing audit activities
Cards (within headers above):

Assigning roles and responsibilities of guides and observers
Assigning work to audit team
Audit information availability and access
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Audit planning
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Collecting and verifying information
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Communicating during audit
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Conducting closing meeting
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Determining audit conclusions
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Determining feasibility of audit

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Distributing audit report

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Establishing contact with auditee

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General (audit Team Leader responsibility)

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General (sequence may be varied)

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Generating audit findings

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Performing review of documented information

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Preparation for closing meeting

Preparing audit report
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Preparing documented information for audit

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Reviewing documented information while conducting audit

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Risk-based approach to planning

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Audit process
Similarities – First, second and third-party audit
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The tutor will now explain in further detail the process steps just identified.
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Please ask questions on any step as they arise, with the tutor.
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Main areas of similarities include:
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Preparation – before the audit

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Communication – during the audit

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Collection and verifying findings

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Conclusions – from findings

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Reporting – preparation and distribution

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A useful acronym is P.E.R.C:

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Planning
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Execute
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Reporting
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Close out/down findings

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ISO 19011 ‘Conducting an audit’ activities

6.2 Initiating audit
6.2.1 General (audit Team Leader responsibility)
6.2.2 Establishing contact with auditee
6.2.3 Determining feasibility of audit
6.3 Preparing audit activities

6.3.1 Performing review of documented information
6.3.2 Audit planning
6.3.2.1 Risk-based approach to planning
6.3.2.2 Audit planning details
6.3.3 Assigning work to audit team
6.3.4 Preparing documented information for audit
6.4 Conducting audit activities

6.4.1 General (sequence may be varied)
6.4.2 Assigning roles and responsibilities of guides and observers
6.4.3 Conducting opening meeting
6.4.4 Communicating during audit
6.4.5 Audit information availability and access
6.4.6 Reviewing documented information while conducting audit
6.4.7 Collecting and verifying information
6.4.8 Generating audit findings
6.4.9 Determining audit conclusions
6.4.9.1 Preparation for closing meeting
6.4.9.2 Content of audit conclusions
6.4.10 Conducting closing meeting
6.5 Preparing and distributing audit report

6.5.1 Preparing audit report NOTE:
6.5.2 Distributing audit report Subclause numbering
refers to the relevant
subclauses of this
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6.6 Completing audit International Standard.
6.7 Conducting audit follow-up
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The tutor will direct the class to ISO 19011 Clause 6, and also refer the class to the Terms
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and definitions for: ‘3.1 Audit’ definition‘.
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The tutor will also refer the class to the definition of an ‘audit plan’: By reference to ISO
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19011 3.6, and what an ‘audit programme’ is defined as: By reference to ISO 19011 3.4.
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These will be covered in more depth later in the course, when you will be auditing a supplier’s
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‘audit programme. Please note that particular attention always needs to be paid to the design,
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planning and validation of an audit programme in the case of multiple locations/sites or where
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important functions are outsourced.

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Activity 3
Audit process differences
10 minutes
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Activity 3: Audit process differences
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To explain the differences in audit process between first-party, second-party and third-party
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certification audits.
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Duration:
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10 minutes in pairs
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Directions:
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In pairs, review the cards on your desk from the previous activity. Identify where differences
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may lie between first/second/third-party audits. Record, as many as you both can think of,
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onto ‘Post-it/Sticky Notes’, and also affix to the flipcharts from Activity 1. Please mark the
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‘Post-it/Sticky Notes’ as ‘Differences’.

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Presentation Slides
Reasons for 1st Party Audits
• Requirement of adopted standards

• Source of information for use by management
• Powerful tool for continual improvement through
• Employee involvement
• Communication
• Employee awareness, etc
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The benefits of internal audits should be covered; vehicle for
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communication, awareness, commitment, fewer nonconformities

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resulting in higher business efficiency, higher morale, perhaps

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increased job stability. Internal audits should always be used to

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examine and evaluate the quality system, not the people working to
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The responsibility of corrective action rests with the person responsible

for the activity audited. Subject to company policy, auditors might
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advise on possible solutions.

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Audit results are an essential input to management review, thus

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contributing to the continuous improvement process. For compliance to

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the ISO standard internal audits are scheduled on the basis of status
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and importance and are mandatory.
Presentation Slides
Reasons for 2nd Party Audits
• Aids selection and grading of suppliers

• Aids deployment of JIT, TQM etc
• Helps improve suppliers’ quality systems
• Foundation for supplier partnerships
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2nd party auditing is just one of the many ways of evaluating suppliers.
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Carried out much less nowadays because of the cost and the increasing
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acceptability of and confidence in ISO 9001 registration.

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When carried out, 2nd party audits are often based on ISO 9001 but
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with the organization’s requirements added to the criteria.

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Modern trend is to view suppliers as partners in business and 2nd party

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auditing establishes firm understanding of requirements and

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contributes to the partnership philosophy leading, in many cases, to

the adoption of additional techniques such as Just in Time delivery
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(JIT).
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Can aid the process of grading suppliers.

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Presentation Slides
Reasons for 3rd Party Audits
• May reduce need for 2nd party audits

• Recognition of conformity to an international standard
• Contributes to reduction in avoidable costs to suppliers
• Aids market competitiveness
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As confidence in registration to ISO 55001:2014 continues for most
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industries, so 2nd party auditing becomes less active.

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Having achieved registration companies become aware of the

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additional benefits, particularly its place in the continuous improvement

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process, resulting in the reduction operating and nonconforming

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product costs.
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Many companies make it a condition of contract that their

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subcontractors are registered, so those who are not are not invited to
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bid for many contracts.

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Presentation Slides
Audit objectives, scope and criteria
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Three aspects need deciding:
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The first is the objective of the audit. Is it to assess an organization for its degree of
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conformance to the Asset Management System standard? Is it to determine where the 55
greatest problems lie? Is it to determine the organization's ability to make a enhance
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performance? Or is it to follow-up on nonconformities reported at a previous audit? The audit

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objectives define what is to be accomplished by the individual audit.

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The second aspect is the scope: Which relates to the ‘extent and boundaries’ of an audit. The
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audit scope generally includes a description of the physical locations, organizational units,
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activities and processes, the number and type of assets (especially critical assets), as well as
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the time period covered. For a third-party audit this tends to cover the complete scope of the
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organization’s management system. A second-party audit may also include this, but more
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probably only the area of interest. A first-party audit tends to be just one item on the audit
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programme which itself will cover the complete management system scope.
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If an organization makes washing machines and refrigerators, but the interest is in

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refrigerators only then that will be reflected on the scope and the effort required. Similarly, if
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the audit is required to look at all departments associated with that product range from order
receipt through to delivery, that also will have a bearing on early decisions. For second-party
audits the scope is decided by the client. The audit scope should be consistent with the audit
programme and audit objectives.
The scope of a management system could be the same as the scope of a second/ third-party
audit, except for the omission of a time period.
The audit criteria are used as a reference against which conformity is determined.
Each individual audit should be based on documented audit objectives, scope and criteria.
These should be defined by the person managing the audit programme and be consistent
with the overall audit programme objectives.
Presentation Slides
In summary:
Scope – What are the boundaries of the audit?
Criteria – What are you going to be assessing against?
Objectives – What are you auditing for/to achieve?
The significance for auditors (you) is that these are your terms of reference; your details of
works, which everything emanates from. These will dictate your document review, work
documents, appear in your audit plan, opening meeting, closing meeting and audit report.
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Activity 4
Determine objectives, scopes and criteria
10 minutes
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Directions:
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Working individually try and think of some audit objectives, scopes and criteria, and write
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them on your notepads. Then explain these to your neighbor, and listen also to their answers
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to this activity. Be ready to query the answers if you do not agree with their findings. Discuss
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any where you are not sure with the tutor and class after.
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Presentation Slides
Resources: What resource will you need?
People / Auditees Technical Experts

Documented information
Logistics / Infrastructure
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Resources for an audit could be split between:
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Audit team – Availability of competent auditors for the sector/discipline – might include
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legal, culture and geographical considerations, interpreters, technical experts i.e. chemists, 55
security clearances – children/government.
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Technical experts – Availability: If the language of the auditee, or the auditee’s social and
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cultural characteristics are unknown to the auditor, or skills are lacking. If all the necessary
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competence is not covered by the auditors in the audit team, technical experts with additional
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competence should be included in the team. Technical experts should operate under the
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direction of an auditor, but should not act as auditors. All communications should be through
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the auditor, and not through the expert.

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People (Auditee’s) – Availability of person(s) responsible/managing the activity being

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audited and actually carrying it out, top management availability, key functions –
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procurement, HR etc.
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Logistics/infrastructure – Availability of meeting rooms/team meeting facilities, internet

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access, PPE, guides, car parking, security and health and safety for your team, movement
within the site (transport - distances etc.)
Documented information during the audit – Documents, records, processes, programmes,

archives etc.
Presentation Slides
Resourcing: Competency
CV
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Resourcing the audit will include the importance of auditor and team competency, and the
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selection of team members. This will be particularly important regarding personal
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characteristics, generic knowledge and skills, the knowledge of the relevant management
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system discipline, industry sector, regulations, and auditor training. See ISO 19011 Clause 7.
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For example:
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Personal characteristics (Examples demonstrating an absence of competency)

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• Ethical – Tell another department what a mess the last department you audited was –
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have a laugh about people getting nonconformities. Lie, or twist the facts to get someone
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you don’t like into trouble!

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• Diplomatic – If the auditee is worried about getting his/her department into trouble, but
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you find a major problem. Be tactful in dealing with this person – it’s not you I’m auditing,
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this is a chance for improvement so we should all welcome it etc.

• Tenacious – The auditor asks to see a particular sample, but the auditee provides a
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different one. The auditor accepts this and moves on!

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• Decisive – The auditee keeps arguing and giving different excuses and the questioning is
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going round and round, even though there is sufficient objective evidence to close the
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finding!
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• Culturally sensitive – shaking a woman’s hand when this would not be appropriate, or
continuing to audit when certain prayer times are normally adhered to. Offering
food/drink to the auditee when they are fasting, etc.
Generic knowledge and skills of management system auditors (Examples

demonstrating an absence of competency)
• An auditor who is being handed samples to look through, but is not selecting samples
themselves
• Not spending more time on processes of greater risk to the product/service
• Auditing outside the scope because he/she knows more about that area, or is interested
in it!
Presentation Slides
Applicable Legal requirements that apply (Examples demonstrating an absence of

competency)
• Clear breach admitted by the auditee in a product legal requirement i.e. CE Marking of
Operating Licence, but the auditor is not comfortable, or is unaware how to raise this in a
nonconformity statement and says: ‘We’ll I’m not that informed on legal, so best we leave
that alone, don’t you think?’
Discipline specific (Examples demonstrating an absence of competency)

• An asset management system auditor who has been tasked with an ISO 45001
management system audit, but has no knowledge of occupational health and safety
Generic knowledge and skills of audit team leaders (Examples demonstrating an

absence of competency)
• Not making effective use of resources – one team member (auditor) has a very long lunch
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health and safety, or not resolving conflicts within the team or with the auditee’s
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Clause 7 of ISO 19011 details very specific auditor knowledge and skills expectations. For
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example: Understanding the types of risks and opportunities associated with auditing and the
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principles of the risk-based approach to auditing; auditing a process from start to finish,
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including the interrelations with other processes and different functions, where appropriate;
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relationships and interactions between the management system(s) processes; the needs and
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expectations of relevant interested parties that impact the MS; principles, methods and
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techniques relevant to the discipline and sector, so the auditor can determine and evaluate
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opportunities associated with the audit objectives; and discussing strategic issues with top
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management of the auditee to determine whether they have considered these issues when
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evaluating their risks and opportunities. Continual professional development activities should
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also take into account changes in sector or discipline.

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Auditor Requirements
All Audits
• Understand the business
• Understand the processes
• Understand the interaction of processes
• Team player
• Understand how to conduct an audit
External, complete system audits
• Understand the business sector
• Proficient in auditing top management (lead auditor?)
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• Proficient in legal requirements (or ensure the team
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It is important the auditing process that the auditor is:
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• Has the attributes to audit top management.

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• Has knowledge of the organization’s processes and their interactions.

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Presentation Slides
Auditor Attributes
Local Requirements
• Culture
• Practices
• Approach
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Auditing in different countries requires the auditor to be aware of that
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country’s culture and practices. This then could have a effect on the
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approach used during the audit.

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Presentation Slides
Auditor Attributes
Auditors must be flexible to

• Changing situations
• Differing management styles
• Differing management/employee levels
Auditors must be competent in
• Reasoning of nonconformities
• Evaluating appropriateness of proposed corrective action
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• Evaluating effectiveness of corrective action
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After this short tutorial the tutor should brainstorm to list the positive
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and negative attributes on the flip chart.

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explanatory.
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The requirements of a professional auditor are quite demanding and

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registered auditors are bound by a code of conduct published by the

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auditor registration body.

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Additionally, 3rd party auditors are bound by the very strict rules
imposed on the registration body by the accreditation authority.
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Before showing the next slide (some attributes of a good

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auditor) it is a good idea to brainstorm this topic listing

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delegates’ inputs on a flip chart.

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situasi berubah
Berbeda gaya manajemen
Berbeda manajemen / tingkat karyawan
Presentation Slides
Some Attributes of a Good Auditor
• Open-minded • Tenacious
• Diplomatic • Decisive
• Observant • Self-reliant
• Perceptive • Ethical
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Good auditors must always be professional in their approach to
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auditing, and the above list comprises just some of the professional
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attributes.
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Tenacious : gigih
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Self reliant : mandiri

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Presentation Slides
Roles and responsibilities
For who?
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Clearly, defined and understood roles and responsibilities, for all parties involved in the audit,
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need to be established.
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• Audit client
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• Individual(s) managing the audit programme – establish its extent, audit objectives, scope
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and criteria for individual audits, determine necessary resource, responsibilities, audit
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methods, selecting the audit team, evaluating auditors, audit records, improve the
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programme and inform top management of its contents. The individual(s) managing the
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audit programme should also dentify and present to the audit client the risks and
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opportunities considered when developing the audit programme, and resource

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requirements, so that they can be addressed appropriately, and review the audit
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programme to identify opportunities for its improvement

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• Lead auditor
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• Auditor(s)
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• Auditee(s), including management

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• Guide(s) and observer(s)

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Main roles are:

• Audit client – to commission/request an audit (for an internal audit – can also be the
auditee or the person managing the audit programme)
• Lead auditor – to audit and manage the process to achieve the defined audit objectives
• Auditor(s) – to audit under the direction of the Lead auditor
• Auditee(s), including management – to assist the auditor during the collection of the
objective evidence
• Guide(s) – to assist the audit team and act on the request of the audit team leader
Presentation Slides
Activity 5
Roles and responsibilities
10 minutes
Click here to start
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Activity 5: Roles and responsibilities
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Purpose:
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To describe the main responsibilities of the auditee(s) management, auditors, lead auditors,
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auditees, guides and observers.
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Duration:
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Directions:
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The tutor will allocate a sheet of sticky labels to each group detailing the main responsibilities
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and the functions concerned.

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In your groups:
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• Review the labels and discuss

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• Peel each label from the sheet and place on a flipchart, matching the main responsibilities
to the functions concerned
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Management responsibilities
Lead Auditor
• Managing the audit and audit team
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The Lead Auditor is effectively the team captain. Their specific management
20
responsibilities are discussed below.
1:
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Throughout the audit the team leader needs to prepare for the next stage of the audit and
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manage the audit and the audit team. This will include:
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• Following up on any ‘leads' which have become apparent as the audit progresses, and
deciding changes to the audit plan (with the client)
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• Deciding whether the audit is progressing to plan, and whether audit objectives can still be
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• Co-ordinating review sessions with client management and audit team meetings
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• Planning and management of the opening and closing meetings – specifically time
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management and questions arising

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• Assisting and managing the audit team if major concerns are found
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• Deciding on the severity of non-conformances – Major or Minor findings

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• Ensuring the ‘tone’ and ‘conduct’ of the audit is appropriate in their team: In line with
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looking for conformance, not just searching for things that are wrong
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The lead auditor is ultimately responsible for all phases of the audit. The lead auditor should
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have management capabilities and experience and should be given authority to make
final decisions regarding the conduct of the audit and any audit observations and conclusions.
Please note: Assigning work to the audit team should include assigning, as appropriate,
authority for decision-making.
Presentation Slides
Auditor confidentiality
Confidentiality
Is there a
need? and
Regulators
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An audit is confidential between the two parties, as is any information raised before, during or
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thereafter. This confidentiality binds management system auditors. A certified
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auditors/lead auditors are also bound by a Code of Conduct stipulating this. A statement to
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this effect should therefore be made by the leader auditor; normally in the opening/closing
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meetings and audit report.
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The format of notes and the medium on which to write them are matters for each auditor to
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decide. Many use clipboards with loose sheets, which are then clipped together, others find a
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notebook more practical. Whichever format they use, auditors must safeguard the
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confidentiality of the information they gain during the audit.

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The very fact that an audit has taken place is confidential between the two parties, and the
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information must not be disclosed to another party without the permission of both parties.
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There are of course two exceptions; firstly, during an audit which is determining the way one
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organization audits its external providers, and secondly, if the audit is for the purpose of
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certification and the auditee is successful. Then they can give permission to advertise the fact.
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A second-party audit is also a matter between the two parties, and any breach of
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confidentiality is not only a serious breach of trust but may also result in legal proceedings.
A first-party internal audit is in effect, no different to the above, in that it is a matter between
the auditor/employee and the organization. Any unauthorized disclosure of sensitive
information may result in disciplinary proceedings.
In keeping with the ethics of auditing, if requested to do so, an auditor should have no
hesitation in signing a confidentiality agreement.
Presentation Slides
Activity 6
Audit methods
15 minutes
Click here to start
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Activity 6: Audit methods
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Directions:
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Individually – provide one advantage and disadvantage for each of the methods detailed in
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Table A.1 - Audit methods of ISO 19011 (Page 35).

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Please note: Audit methods also need to be determined based on where, when, and how to
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access audit information. This is crucial to the outcome of a successful audit and is
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independent of where the information is created and used etc. Audit methods may need to
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change as audit circumstances change during the audit (to access audit information) See A.1.
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A.1 Applying audit methods

At the level of the audit programme, it should be ensured that the use of
remote and on-site application of audit methods is suitable and balanced, in
order to ensure satisfactory achievement of audit programme objectives.
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ISO 19011:2018 Clause A.1 also states that: At the level of the audit programme, it
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should be ensured that the use of remote and on-site application of audit methods is
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suitable and balanced, in order to ensure satisfactory achievement of audit
programme objectives.
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Clause A1 also states that if an audit involves the use of an audit team with multiple
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members, both on-site and remote methods may be used simultaneously.

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Options could then possibly include document review and management interviews
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***It is clear that ISO 19011 promotes a suitable and balanced approach to
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the use of remote and on-site application of audit methods. However, there
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are ‘extraordinary’ events that can occur that might necessitate a 100%
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remote auditing method.

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Presentation Slides
Risks and opportunities - Remote audits
Remote
auditing
carries some
risks but also
offers
opportunities
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Remote auditing carries some risk, but also offers opportunities to deliver an effective
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internal audit in a more efficient way. In situations where a physical on–site visit is
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impossible due to “extraordinary events“ their use can ensure the maintenance of
internal audit programmes.
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While it is not necessary to create risk assessments for audits where remote methods
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will be used, it could be helpful for large or complex situations (especially 2nd party
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audits) to document the risks and opportunities separately to ensure all parties are
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clear on the audit objectives and how they may be achieved using remote methods.
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ISO 19011, A.1 Applying audit methods states:

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The feasibility of remote audit activities can depend on several factors (e.g. the level
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auditee’s personnel and regulatory requirements).

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Presentation Slides
Process flow for the management of an audit programme

Plan Do Check Act
5.2 Establishing
audit programme
objectives
5.3 Determining and 5.7 Reviewing and

evaluating audit
programme risks and
improving audit
opportunities programme
5.4 Establishing the 5.5 Implementing 5.6 Monitoring audit

audit programme audit programme programme
6.4 Conducting audit 6.7 Conducting

6.2 Initiating audit
activities audit follow-up
6.5 Preparing and

6.3 Preparing audit
distributing audit 6.6 Completing audit
activities
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Presentation Slides
Course Content

Day 5 Examination
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and activities.
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Presentation Slides
Exercise 3 – Audit Preparation
Potential new supplier, but with no formal

documented system; how would you prepare for
this audit?
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THIS SLIDE IS ONLY HERE TO ENSURE THIS IS COVERED.
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Establish or agree the purpose and scope of audit.

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Determine whether requirements of quality standard or contract apply.

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Policy statement, instructions and procedure.

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Quality plan.
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Pre-audit visit.
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Checklist.
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Presentation Slides
The Audit Life Cycle
The audit life cycle is often referred to as P.E.R.C.

• Planning
• Execution
• Recording
• Close out
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The audit is not just the collection of objective evidence.
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The audit is not complete or effective unless these four stages have
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Each of these stages will be covered in detail during the course.

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Conducting an audit
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Stage 1 audit
Clarify scope and
objective
Assess organizational
readiness for an audit
Plan the audit Gain an understanding
of the organization
Purposes
Establish the of Define process flow
adequacy
of documentation Stage 1 and interaction
audit
Identify layout of
company/plant
Identify any special
needs, skills, Agree processes
protective clothing to be used
Resolve any during audit
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Stage 1: As defined by ISO 17021 (Conformity assessment. Requirements for bodies
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providing audit and certification of management systems), has the purposes of:
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• Confirming the duration of the audit 55
• Confirming the competence of the team
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• Clarifying the scope and objective of an audit

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• Gain an understanding of the business

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• Evaluate the internal audits and management review are being planned and performed
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• Review the clients status and understanding regarding with respect to identification of key
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performance indicators, processes and objectives of the management system

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• Define process flow and interaction

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• Agree processes to be used during audit

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• Resolve any misunderstandings

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overview and not testing the implementation or effectiveness of processes
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• Assess the organizations readiness for the next stage

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• Plan the next stage of the audit
Third-party certification audits include a stage 1 site visit, and the costs are built into the
initial proposal. The visits can be of great value. They allow the team leader to meet various
members of the auditee's staff, and they are a good opportunity for the team leader to be
given a ‘quick tour’ of the site, and thus appreciate the scale, layout and geography involved.
Should transport around the site, or special protective clothing be necessary, it also gives the
team leader time before the audit to ensure these will be available, thus saving valuable audit
time. The meeting obviously provides the auditee with an opportunity to ask the team leader
about the way the audit will be conducted.
Presentation Slides
Stage 1 audit process and outputs
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Stage 1 audit process and outputs.
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Presentation Slides
Stage 2 audit: Preparation activities

Consider Consider:
• Past results (if available) The risk potential of
• Current problems/risks • Activities
• Management's concerns • Products
• Management's priorities (where appropriate) • and Services
Determine Consider the context

Scale of audit and importance/risk
and resources (including legislation)
required
Prepare
and agree
Contact Assign
audit plan
Auditee and work to the
agree date(s) audit team
Brief the
audit team
Consider report from
Stage 1 site visit Prepare
work
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bodies providing audit and certification of management systems), has the purposes of:
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Assessing the ‘implementation’ and ‘effectiveness’ of the management system.
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• Consider management's concerns

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• Consider management's priorities (where appropriate)

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• Report from stage 1 site visit

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• Determining the setting and importance/risk (including legislation)

• Identify the risk potential of activities, products and services
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• Prepare and agree audit plan

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• Assigning work to the audit team

• Audit team briefing
• Prepare work documents
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Presentation Slides
Initial certification audit – Stages 1 and 2

From ISO 17021
17021:2011
Document Review
Audit go/no-go decision
Audit Plan Work documents
Stage 1
Stage 2 Opening Meeting
Audit
Summary Report Nonconformity Reports
Closing Meeting
Corrective Actions
Continuing Assessment Visits
3 Yearly Recertification
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This slide establishes the context of an initial certification audit and its outcomes. Use it as the
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course progresses, and to show the broad architecture of the audit process.
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There is an opening meeting, summary report, nonconformities if applicable, closing meeting
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and corrective action if applicable at both Stage 1 and 2.

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Presentation Slides
Planning the Audit
• Appoint a team leader

• Understand the business
• Understand the objective
• Agree the scope
• Determine the processes
• Determine the interaction of the processes
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The objective of the audit must be defined – initial audit? – continuous
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assessment? – partial re-assessment? – full re-assessment?

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What activities of the auditee’s organization are to be included in the

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audit?
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Team leader selected by the auditing organization must have a

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knowledge of the business and also take into account expertise

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required, e.g. legal or technical skills. They must have a good

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knowledge of the business, geographical location, purpose of audit, or

other specific considerations.
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Team leaders plan the audit, calculate the auditor days required to
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complete the audit, agree with the auditor the actual duration of the
audit, and select the team on the basis of experience/expertise
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required.
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Presentation Slides
Planning the Audit
• Calculate the audit duration

• Select the team
• Contact the auditee - agree the date(s)
• Draw up an audit programme
• Brief the team
• Prepare checklist
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Team selection is important. The selection needs to take into account
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the type of business, and do we need technical experts such as an IT

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Auditor? Do we need auditors with special skills in legal compliance?

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information regarding any logistical arrangements, e.g. special clothing

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etc. Often this auditee contact is by way of a (one day) visit by the
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team leader prior to the audit.

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For some registration bodies a pre-assessment visit an option during

which the quality manual will be assessed for intent (adequacy).
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preliminary meeting or pre-assessment; these notes will assist briefing

the team.
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The programme is then prepared and sent to the auditee.

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Checklists will be prepared by the team based on all information

available.
Presentation Slides
Duration Calculation
• The Key factors in Stage 2 and CAV Durations relate to the

organizations asset complexity, diversity, instability of the
business environment, and to some extent the size of the
organisation.
• This means, in general Stage 2 visits will be generally

between 6 and 12 man days and CAVs between 5 and 8
man days per year for most organisations.
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Presentation Slides
AUDIT PLAN (SAMPLE)
Company / Auditee PT. XYZ

Audit Objective Check Asset Management systems implementation
Audit Location JL. Soekarno Hatta, Bandung

Auditee Representatives MR and Division Head
Audit Scope All Division
Audit Criteria Standard (IISO 55001:2014), Documented Information
Date of Audit 2016-06-26 to 2015-06-27
Audit Leader Messi (MS) – Lead Auditor
Auditor Ronaldo (RO) ,Torres (TR), Del Piero (DP)
AREA /
DAY / TIME AUDITEE AUDITOR RELATED CLAUSES TO QQHSEMS
ORGANIZATIONAL UNIT
Day One
09:00 – 09:15 Opening Meeting All Team
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Management Plan
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Presentation Slides
Exercise 4 – Audit Planning
Using your own organisation

• Prepare an audit plan
• List the departments
• Allocate timings
This will cover 2 teams and the audit duration is for 2 days.
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assessment? – partial re-assessment? – full re-assessment?
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What activities of the auditee’s organization are to be included in the

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audit?
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Team leader selected by the auditing organization taking into account

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expertise required, geographical location, purpose of audit, or other

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specific considerations.
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Team leader plans the audit, calculates the auditor days required to
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complete the audit; agrees with the auditor the actual duration of the
audit, and selects team on the basis of experience/expertise required.
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Auditee is contacted to agree date(s) of audit and to obtain information

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regarding logistical arrangements, such as required special clothing etc.

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Often this auditee contact is by way of a (one day) visit by the team
ad
leader prior to the audit.

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Some registration bodies offer an option of a pre-assessment visit

during which the quality manual will be assessed for intent.
Team leader will take notes about the auditee’s organization during the
preliminary meeting or pre-assessment. These notes will assist briefing
the team.
The programme is prepared and sent to the auditee.
Checklists will be prepared by the team based on all information
available.
Presentation Slides
Audit Purpose
To collect objective evidence to permit an informed

judgement about the status and effectiveness of the
asset management system.
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Only informed judgements must be made by auditors, and are
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based on the objective evidence gathered during the audit.

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Checklist Benefits
• Keeps audit objectives clear

• Evidence of audit planning
• Maintains audit pace and continuity
• Reduces auditor bias
• Reduces workload during audit
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Checklists (aides-memoire) avoid the need for the auditor to rely on
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memory. This can lapse during the pressure of auditing.

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Without a checklist or other documented plan it is easy to perform an

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audit focused on just one aspect of the department’s activity. The

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checklist will show if an unbalanced audit (biased) is planned. This will

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enable the auditor to redress the balance prior to the audit.

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The auditor can apply estimated times to each item on the checklist to
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ensure that the audit does not ‘run out of steam’.

A good idea to suggest that a less emotive term might be ‘aides-
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Checklist Drawbacks
• Checklists tend to lose value if they are

• Tick lists
• Questionnaires
• Prepare them as aides-memoire
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Checklists are not ‘shopping lists’, they act as a prompt to the auditor
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as to what activities he/she intend to investigate during the audit.

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Effective checklists avoids listing questions, as this approach could

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restrict the depth of the audit.

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Good checklists act as a planned route through the audit, planning

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what aspects of the activity to look at and look for.

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Checklist Preparation
1. Understand the process

2. Interaction of process
3. Convert clauses of the standard into
questions/topics
4. Using these questions and the quality manual
• Plan what to look at
• Plan what look for
• Consider sample sizes
5. Prepare checklist
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This approach is for the preparation of what is often called the ‘criteria’
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check list. It needs to be prepared only once as it can be used as the

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basis for all audits to come.

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Preparing the audit checklist is carried out by using the criteria

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checklist together with the auditee’s quality system documentation to

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plan what to ‘look at’ and ‘look for’.

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Presentation Slides
Representative Samples
When planning samples, consider

• The major process of the department
• The other duties it undertakes
• What it does when things go wrong
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When compiling a checklist the auditor should attempt to address all
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the relevant activities in the department to be audited.

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Major function:
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• Why does the department exist?

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• What does it do that contributes to quality?

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• Where/what are the critical control points?

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Other functions undertaken:

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• Do the other functions complement or conflict with the main

function?
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• Do other departments use the same or different systems for

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management and/or control?

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Problems
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• Look at how the department deals with problems; are systems in

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place to address such possibilities? Lack of systems will give an

indication of the effectiveness of the overall quality management
system.
Presentation Slides
Checklist – Starting Point
• Ask for an overview of the process for …...

• How do these processes interrelate with other processes
within the organization?
• How are processes controlled?
• How are processes monitored/measured?
• What evidence of continual improvement is there?
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Auditors will need to gain the above information before they can
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understand the process and where it is in relation with other

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Auditors will need an understanding of the monitoring and

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measurement of processes before they can look at continual

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Checklist – Asset Management and

Information Requirements for Fleet Vehicle
• The running costs of the vehicle?
• The planned maintenance costs of the vehicle?
• The historic cost of maintenance and repairs?
• The age and mileage of the vehicle?
• The predicted economic life of the vehicle?
• Company requirements for reliability and other
performance factors?
• The cost of replacement/ Alternatives?
• The value of vehicle
• Environmental Issues
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• Policy Issues
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Once we understand the process we can verify the process.
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Using Standard
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Presentation Slides
Auditing case studies:
“Interviews with representative staff who can have an impact

on the achievement of asset management objectives, reveals
that 1 out of 5 interviewees was not aware of the risks and
opportunities associated with their work activities.”
- What clause(s) relevant with the case above?

- Is it CONFORMITY or NON-CONFORMITY?
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ISO 55001 - The International Standard
• Section 1 - Scope
• Section 2 - References
• Section 3 - Terms and Definitions
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Specifies the requirements for an asset management system
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Section 2 – References
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Refers to ISO 55000 Asset Management – Overview, principles and methodology

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Terms and definitions given in ISO 55000 apply

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Same principles as other ISO documents but using the revised format from Annex SL.
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Terms and definitions are key to the understanding of the standard and its interpretation.
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Some of the key terms and definitions will be looked at in detail.

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Key Terms and Definitions
• An Asset Management System (AMS) is a set of interrelated or

interacting elements to establish asset management policy, asset
management objectives and processes to achieve those objectives.
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Note that an Asset Management System is NOT a software application for managing assets - a
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software application or enterprise solution (such as a work management application, asset
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register system or asset records system) may be an integral part of the AMS.
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Asset system
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A set of assets that interact or are interrelated.

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Asset portfolio
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Assets that are within the scope of the asset management system.
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Asset management system?

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A management system for asset management.

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What is asset management?

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The co-ordinated activity of an organization to realize vale from assets.
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Key Terms and Definitions
• These are important asset-related definitions
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Audit
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Systematic, independent and documented process for obtaining audit evidence and
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evaluating it objectively to determine the extent to which the audit criteria are fulfilled.
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Capability
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Measure of capacity and the ability of an entity (system, person or organization to achieve
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Ability to apply knowledge and skills to achieve intended results.

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Conformity
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Fulfilment of a requirement.
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Objective
Result to be achieved.
Requirement
Need or expectation that is stated, generally implied or obligatory.
Risk
Effect of uncertainty on objectives.
Stakeholder
Person or organization that can affect, be affected by, or perceive themselves to be affected
by a decision or activity.
Presentation Slides
Asset type
A grouping of assets having common characteristics that distinguish those assets as a group
or class.
Critical asset
Asset having potential to significantly impact on the achievement of the organization’s
objectives.
Strategic asset management plan (SAMP)

Documented information that specifies how organizational objectives are to be converted
into asset management objectives, the approach for developing asset management
plans, and the role of the asset management system in supporting achievement of the
asset management objectives.
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Documented information that specifies the activities, resources and timescales, required
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management objectives.
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Refresh about asset.
• Value;
• Criticality;
• Conditions;
• Performance;
• Data (static and dynamic);
• Incident and non-conformity;
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Refresh about Asset Management (AM)
• The fundamentals, AM is based on:

• Value; asset exist to provide value to…
• Alignment; AM translates organizational objectives into
technical and financial decisions, plans and activities.
• Leadership; Leadership and workplace culture are

determinants of realization of value.
• Assurance; Asset management gives assurance that assets will

fulfil their required purpose.
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Enabling Objectives
Section 4 – Context of the Organization
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develop specific knowledge and skills. These are specified as ‘enabling objectives’ and can be
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ISO 55001 - Asset Management System
Plan
4 Context of the organization
 Understanding the organisation and its context
 Understanding the needs and expectations of the
10 Improvement stakeholders
4 Context of the
Determining thescope
organization
of the AM System
Act
5 Leadership
-
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9 Performance
Support
evaluation
Check 6 Planning
8 Operation
Do
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Context of the Organization
• 4.1 Understanding the organization and its context
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• Determine the relevant external and internal issues that affect the ability to achieve the
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intended outcomes of the asset management system
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• What is the organization do?

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• What is its function and how does it create value?

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• Understanding the ‘basic essence’ of the business and the business environment that it
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operates in will determine the issues that the business needs to consider
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It may include such things as statutory requirements, regulatory requirements and the
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customer marketplace that the organization operates in.

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The SAMP should:

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• Be a high level plan

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• Consider activities beyond the routine planning timeframe

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• Be used to develop asset management implementation plan(s)

• Be subject to regular review
In developing the SAMP the organisation should:

• Document the relationship to organisational objectives
• Consider the expectations and requirements of the stakeholders
• Document the process for establishing asset-related decision making criteria
Presentation Slides
Creation of the key elements of the SAMP creates the ‘cornerstone’ of the AMS for the
business:
• It links what needs to be done (from the OSP) to what is actually being delivered in
practice
• It sets out the methodology for decision making in the AMS
• It creates the basis for consistency (for example as the business re-organises and
the roles of staff change)
• It provides the platform for review and challenge.
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• 4.2 Understanding the needs and expectations of

stakeholders
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Understanding the needs and expectations of stakeholders
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It focuses on defining who the relevant stakeholders are for the organization and what their
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requirements and expectations are.
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Stakeholder mapping is essential – it defines what is important to the business.
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Many stakeholders will not recognize ‘asset management’, and would not understand the
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question ‘what are your expectations of asset management in the organization’. Exceptions
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would obviously be stakeholders with specific knowledge and interest in this area – such as
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regulators and government authorities.

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Stakeholders probably know what they want and expect of a well-run organization in respect
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of delivering value to them.

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The organization should seek to identify accepted stakeholder requirements in terms of

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business objectives.
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The reality is that some stakeholders may have conflicting or un-realistic expectations (such
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as environmental pressure groups), and some stakeholders will have more influence and
importance in determining what the organization does.
Stakeholder expectations are the start point in determining the organizational strategic plan.
To be useful they must be articulated into a form that can then be translated into asset
management strategy and objectives using defined criteria.
This is likely to be in terms of business drivers, objectives and targets.
The organization will also need to determine what is reported back to internal and external
stakeholders (and how) – for both financial and non-financial information.
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• 4.3 Determining the scope of the AM System
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The organization will need to determine the scope of the AMS
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It must:
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• Be aligned with SAMP and AM policy 55
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In determining boundaries and applicability the organization will need to:

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• Take into account relevant factors external to the organization

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• Take into account relevant internal issues

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• The needs and expectations of stakeholders

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• Consider the interactions with other management systems

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• Define the portfolio of assets

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• Include outsourced activities

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• Be documented
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In particular the boundaries of the scope need to be clearly identified in relation to other
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parts of the organization if they are not inside the scope.

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• 4.4 Asset Management System
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Requirement to establish, maintain and continually improve an AM system.
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The AMS must:
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• Be integrated with other organisational functions (finance, safety, risk, HR etc.)

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• Be developed and improved using a prioritised process

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• Include a documented SAMP which defines the role of the AM system in supporting
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achievement of AM objectives
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The AMS is the means for recording all the key aspects, processes and activities in relation to
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the management of assets within the business.

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It also defines interfaces to other management systems and other parts of the business.
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It will include the methodologies for creating, recording and revising strategies and objectives
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which will drive the delivery process.

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The AMS does not need to be contained in one document – it is usually spread over a number
of documents.
However it aids understanding if there is a high level summary of the key elements of the
AMS (usually containing a high level process map).
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Enabling Objectives
Section 5 - Leadership
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This section deals with ‘Leadership’.
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Plan
10 Improvement
Act
5 Leadership
-  Leadership and commitment
7  Policy
9 Performance  Organisational role, responsibilities
Support
evaluation and authorities
Check 6 Planning
8 Operation
Do
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Leadership
• 5.1 Leadership and Commitment
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It is not expected that top management would deal with all aspects of the AMS directly.
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Roles and responsibilities would be delegated by top management but they would be
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expected to ensure that processes and procedures are in place to cover all these areas and
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review their effectiveness during the management review.

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Top management remain responsible and have direct involvement for ensuring that key
fo
aspects are undertaken.

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These would be to:

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• Ensure AM Policy, SAMP and AM objectives established and compatible with

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organizational objectives
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• Ensure am system requirements integrated into business processes

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• Ensure resources are available

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• Communicate importance of asset management and conforming to AM system

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requirements
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• Ensure AM system achieves intended outcomes

• Direct and support persons to contribute to the effectiveness of the AM system
• Promote cross-functional collaboration within the organization
• Support other management roles to demonstrate leadership
• Ensure risk management in asset management is consistent with organization’s
approach
• Promote continual improvement
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Leadership
• 5.2 Policy
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This is a very specific requirement.
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It should be similar to the organizational policies for safety, environment and quality and be
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similarly visible and communicated.
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The policy document must:

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• Be Top Management’s high level statement of the principles approach and expectations
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relating to asset management.

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• Provide a framework for setting AM objectives

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• Be fundamental to the effective and safe management of assets in an organisation

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• Demonstrate commitment to compliance and continuous improvement

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• Be consistent with the organizational plan and other relevant policies

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• Be documented and communicated internally and externally, as appropriate

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• Be reviewed and updated on a regular basis

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The policy document could be referenced in a court of law.

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Leadership
• 5.3 Organizational Roles,

Responsibilities and Authorities
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Top management to assign responsibility and authority for:
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• Establishing and updating the Strategic Asset Management Plan (SAMP) 55
• Ensuring the AM system supports delivery of the SAMP
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• Ensuring the AM system complies with ISO 55001

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• Ensuring the suitability, adequacy and effectiveness of the AM system

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• Establishing and updating asset management plans

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• Reporting the performance of the asset management system to top management

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• Includes outsourced activities

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tin
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This is where the delegation is defined.

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This would normally mean that the above requirements are specifically included in the job
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outlines, job specifications or RACI matrices.

di
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It also delegates the ‘day to day’ checking of the effectiveness of the AMS which means that it
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Is not just checked on the (annual) management review.

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Enabling Objectives
Section 6 - Planning
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This section deals with ‘Planning’.
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Plan
10 Improvement
Act
5 Leadership
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9 Performance
Support
evaluation
Check 66Planning
Planning
 Actions to address risks and
opportunities for the AM system
 Objectives
8 Operation  Planning to achieve AM objectives
Do
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Planning
• 6.1 Actions to address risks and opportunities for the asset

management system
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• Addressing issues to achieve required outcomes
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• Prevent or reduce undesired effects
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• Achieve continual improvement 55
• Plan actions to address risks and opportunities
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• Taking into account how these change with time

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• Integrate the actions into the AM system processes

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• Evaluate the effectiveness of these actions

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This section is about assessing the risks and opportunities in relation to the ‘business context’
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and ‘the needs and requirements of the stakeholders’.

di
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This is where the actions are taken into account in the creation of objectives and delivery
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plans.
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As plans are produced and revised there needs to be a check back that these areas are still
being appropriately addressed.
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Planning
• 6.2.1 Objectives
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Asset management objectives need to be:
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• Organisational objectives
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• Asset management policy

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• Using management decision making criteria

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• Included and updated as part of SAMP

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• Measureable
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• Monitored
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• Communicated to relevant stakeholders

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• Reviewed and updated as appropriate

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• Retained
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The defining of objectives (which would usually span more than one budget year) creates the
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basis for the requirements of budget targets and delivery plans.

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Stakeholder expectations are normally analysed and brought together in the Organizational
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Strategic Plan – this will set out the overall business direction and deliverables, and in many
organizations it may include within it the requirements for the assets.
ISO 55001 does not prescribe how plans and strategies will be documented, but it does
require that stakeholders are identified and their requirements, in relation to asset
management, and that the SAMP is aligned and consistent with organizational objectives.
In practice organizational objectives may not be directly expressed in terms that are
meaningful to asset management, and may be described in terms of drivers or principles. It is
important that asset management objectives are concrete achievable ‘milestones’ that
enable the demonstrable achievement of organizational objectives, and consistent with agreed
deliverables in relation to stakeholder expectations – and of course the AM policy and other
compliance requirements.
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When reviewing real objectives, the ‘line of sight’ should be visible – which
organizational objective or driver does this support?
The AM objectives should be adequate to enable the development of specific plans, and
the SAMP should provide the long term plan and rationale for the AM plans – adequate
to secure long term funding and resources.
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SAMP Concept (base on ISO 55002:2018, fig. C1 )

Stakeholder Organizational External & internal
requirements (4.2) objectives & plan issues (4.1)
AM policy
(5.2)
SAMP: Plan for the asset portfolio
SAMP: Plan for the asset AMS
improvement plan (4.3, 4.4, 9.1 & 10)

Strategic AM objectives (4.1 & 6.2.1)
Asset management system

Approach for developing AMPs (6.2.2)
Plan for the asset portfolio (6.2.2)
Capabilities needed
Asset management planning (6.2)

Activity type 1 AM AM AM
strategy objectives objectives objectives
Asset type 1
AMP AMP AMP
life cycle strategy
Asset Asset system 1 Facility 2
Asset type 2
life cycle strategy
type 1
Keys
Refs The clause numbers relate to ISO 55001
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AM asset management
AMP asset management plan
AMP AMP SAMP strategic asset management plan
Asset type 2 Asset type 3
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The relationship between a SAMP and the asset management plans is shown in Figure
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C.1.
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The SAMP includes:
a) the plan for the asset portfolio, i.e. the high-level activities to be undertaken on the
00
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assets to enable the delivery of organizational objectives;
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b) the plan for the asset management system, i.e. the enhancements needed for the
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processes, resources and other capabilities necessary for the effective implementation
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of the SAMP and the asset management plans (AMPs).

fo
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In Figure C.1, the SAMP is shown in two linked boxes to highlight this distinction.
tin
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The strategic asset management objectives should be developed for the entire asset
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portfolio after considering the asset management policy, organizational objectives,

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stakeholder expectations and external and internal factors influencing the organization
di
Au
and its asset management system (see 4.1, 4.2 and 6.2.1). The strategic asset
management objectives should be cascaded down to the level at which separate asset
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management plans are developed and should relate to required performance targets
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for asset systems and individual assets, see 6.2.1.
The SAMP also provides the direction and approach [including the policy, principles,
assumptions, common parameters and decision-making framework (see Annex D),
etc.] for the development of the asset management plans. The two downward arrows
in Figure C.1 illustrate this cascading action and direction.
When all the asset management plans are developed, using an iterative top-down and
bottom-up process (see 6.2), the outputs from these plans should be:
— aggregated at the portfolio level;
— prioritized using the decision-making framework, while being balanced with the
Presentation Slides
available funding and other resource constraints (see Annex D).
In developing any time-bound and resource constrained asset management

plans for an individual asset, or a grouping of assets (by asset type, asset
system, facility, or unit in the organization), it is important that certain
common methods/strategies are applied to ensure consistency and
cohesiveness in achieving the overall strategic asset management objectives.
These strategies can be developed in advance in terms of asset life cycle
strategies for the different asset types or strategies for generic activity types
(asset creation/acquisition, utilization/maintenance, renewal/disposal, etc.)
and applied in developing the asset management plans, as shown by the
horizontal arrows going from left to right in Figure C.1.
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Planning
• 6.2.2 Planning to achieve AM objectives
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• Planning to be integrated with other organisational planning activities
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• Financial
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• Human resources 55
• Other support functions
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• Plans to achieve objectives to be established, documented and maintained

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• Plans to be aligned with AM Policy and SAMP

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• Take into account ‘relevant requirements from outside the AM system’

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Plans get created that need to fit in with other business activities – particularly where they are
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providing support (financial, HR etc.).

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Plans need to be realistic!

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They could include an element of ‘stretch’ but should be reasonably achievable.

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Plans will fail to deliver unless there is adequate provision made for enough competent
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resources to deliver the plan (a key failing), particularly where specialist resources are
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required.
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Plans should be based on achievement of the objectives and in line with policy and the SAMP
– this continues the ‘alignment’ or ‘line of sight’ theme.
When creating or reviewing the plan targets, the ‘line of sight’ should be visible – which
organizational objective or driver does this support?
The process for creating the plan needs to include:

• Method and criteria for decision making and prioritisation of activities and resources
• Process for managing the assets over the life cycle
• Actions to address risks and opportunities
• What will be done
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• What resources are required

• Who is responsible
• When it will be completed
• How results will be evaluated
• Time horizon for plans and the review period
In summary, plans should be SMART (specific, measureable, achievable, realistic and

time bound)!
It is important that the criteria for decision making are documented – particularly where
there are budget constraints.
Where activities do not make the ‘budget cut’ then there needs to be a review to
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are delayed (e.g. capex project delayed may require increased operation or
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maintenance interventions).
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If plan targets are consistently not being achieved then the strategy and objectives may
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need to be reviewed/revised.
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The planning process must also establish processes for:

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• Identification of risks and opportunities

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• Assessment of risks and opportunities

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• Determining the significance of assets in achieving asset management objectives

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• Implementing the appropriate treatment, and monitoring, of risks and

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opportunities
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As such risks and opportunities can change over time and will need to re-assessed on a
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regular basis.
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This will be particularly important where routine work is affected by new requirements
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or delayed due to major incidents.

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It is important to ensure that AM related risks are considered in the organisation’s risk
management approach. This will include consideration of contingency planning.
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Enabling Objectives
Section 7 - Support
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Plan
10 Improvement
Act
7 Support
 Resources 5 Leadership
 Competence
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 Awareness
 7
Communications
9 Performance
 Support
Information
evaluation
requirements
 Documented
information
Check 6 Planning
8 Operation
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Support
• 7.1 Resources
• 7.2 Competence
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• Determine the resources needed for the establishment, implementation, maintenance
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and continual improvement of the AM system
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• Provide resources to meet AM objectives and implementing the AM plan(s) 55
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Resources can be split into two areas:

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Resources for the Asset Management System – administer processes, undertake

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analysis, etc.
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• Will involve specialised resources – usually industry specific or industry experienced.

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Resources for the plan – delivering the objectives

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• Availability (especially external resources)

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• Identification of the skills/competence required

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• Time to acquire external resources (procurement, contract set up)

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• Time to train internal resources

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• Time to familiarise with situation

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Competence
• Ensure the competence of resources doing work is appropriate
• Document and undertake periodic review
• Consider future competency needs and requirements
The competence of staff:

• Must be defined for AM roles at all levels
• Needs a regular review of individuals against the role
• Identifies training needs
• Drives training and development plans
The competence of staff and contractors:

• Must be audited
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Support
• 7.3 Awareness
• 7.4 Communication
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• People doing work need to:
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• Be aware of policy
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• Contribute to the effectiveness of the AM system 55
• Risks and opportunities in relation to their work
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• Be aware of the implications of not conforming to the AM system requirements

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ISO 55001 does not state how awareness can be measured!

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Good practice would be to have records of information disseminated!

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Communication
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• For Internal and external communication

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• What
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• When
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• To whom
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• How to communicate
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• In relation to assets, asset management and the AM system

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Must include both Internal AND external communications

• Records need to be kept covering all the formal aspects of communication
Communication implies two way communication (rather than awareness).

• So records of issues raised and how they were dealt with would be important
Awareness and Communication cover all aspects of the AMS!

• The awareness/communication that would be appropriate would depend on the stakeholder
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Support
• 7.5 Information Requirements
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• Determine information requirements to support assets, asset management and AM
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• Includes consideration of…. 55
• Significance of risks
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• Roles and responsibilities

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• AM processes and procedures

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• Exchange of information with stakeholders

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• Impact of quality, availability, and management of information on decision making

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• Need to determine
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• Attributes
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• Quality
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• How and when data is collected, analysed and evaluated

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• Process need to be specified for managing information

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• Requirements for alignment with financial and non-financial terminology

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• Ensuring consistency and traceability to meet legal, regulatory and stakeholder

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requirements
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This is quite an extensive and far reaching requirement.
Specifications for data and information requirements in relation to assets, asset activities and
asset analysis need to be in place and be ‘fit for purpose’.
A number of the requirements will be included in the specification or application of an

enterprise asset management and other enterprise systems used by the organization.
This may determine what and how data is collected but process will need to be put in place to
ensure that required data is collected and that it is of a suitable quality standard. The data will
need to be audited to ensure that completeness and quality requirements are being achieved.
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Support
• 7.6.1 Documented Information – General

• 7.6.2 Creating and Updating
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• Documents as necessary for the effectiveness of the AM system
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ISO 55001 does not directly specify that the AMS has to be documented other than the
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above. However, it is clear that to operate an effective AMS and ensure its consistent
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application across the organization, documentation of most aspects of the AMS will be
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required.
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The documentation requirement will vary from organization to organization but should be
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demonstrated to be ‘fit for purpose’.

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Creating and Updating

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• Need to ensure:
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• Identification and description

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• Format and media

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• Review and approval for suitability and adequacy
This forms part of the specification of the document management system.
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Support
• 7.6.3 Control of Documented Information
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Documented information shall be controlled to ensure:
1:
• It is available for use
00
• It is adequately protected 55
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Control will include:

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• Distribution, access (view/update), retrieval and use

S
• Storage and preservation

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• Control of changes
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• Retention and disposal

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The document management system needs to cover controlled maintained documents (e.g.
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policy, strategy and process documents, plans etc.) which will need to be regularly reviewed,
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revised and re-issued from time to time.
The document management system needs to cover controlled non-maintained (e.g. analysis
reports for failures, incidents and accidents) documents where issue of the documents need
to be controlled but once issued will not be subject to regular review and update.
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Enabling Objectives
Section 8 - Operation
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Plan
10 Improvement
Act
5 Leadership
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9 Performance
Support
evaluation
Check 6 Planning
8 Operation 8 Operation
 Operational planning and control
 Management of change Do
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Operation
• 8.1 Operational Planning and Control
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Corrective and preventative actions may be required that were not in the original plan.
Where changes are required to the plan which will affect overall delivery there should be a
process risk assessment and re-prioritisation, as appropriate.
It is easy to be side-tracked into dealing with the urgent issues (which ‘shout the loudest’)
rather than focussing on the important issues.
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Decision making framework for AM (base on ISO

55002:2018, Fig. D.1)
Value
4.1 Context/ Annex A 4.2 Stakeholder/
business environment societal expectations
Organizational objectives
Compliance management
SAMP Annex C
Risk management
Risk & opportunities

Value provided by assets
Requirements
Decision-
making
criteria
Annex D
Asset management plan(s)
Key
SHE safety,
health,
Operational planning & control
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Figure D.1 shows the vertical alignment from context and stakeholders’ expectations
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to operational planning and control, as well as the horizontal influences of risk and
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constraints of compliance which modify planning through the decision-making criteria.
The decision-making framework should be tailored to the needs of the organization.
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Alignment between decision levels (vertical alignment) is required to allow
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itself in addressing external stakeholder issues.

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documented information, in order to ensure the appropriate application of the

decision-making framework. The method and criteria for decision making should be
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detailed in documented information, communicated within the organization, and to

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appropriate stakeholders (see ISO 55001:2014, 7.6).

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Operation
• 8.2 Management of Change

• 8.3 Outsourcing
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The risks associated with any planned (permanent or temporary) change that can impact on
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process and then the consequences for the AMS get identified ‘down the line’ – which makes
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recovery difficult. An example would be the reorganization of part of the business where the
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Outsourcing
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• Risks need to be assessed

• Outsources activities need to be controlled within the AM system
• Responsibility and authority determined
• Process for sharing knowledge and information defined
• Outsourced activities monitored
Outsourcing is increasingly common in organizations – although some have also brought

activities back ‘in-house’! The requirements are quite onerous – control and monitoring needs
to be maintained even with activities outsourced.
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Summary Information Utility X
Utility X is an electricity utility responsible for distribution of electricity to 5 million

customers.
The utility has a long term strategic plan, but your accountability is to deliver the 12
month programme in the current year’s budget.
The programme of work includes capital and operational expenditure.
CAPITAL EXPENDITURE
There is a $200m programme of system development, and new connections which is to
be delivered during the year, this is capital work and is a mixture of projects that have
started and new work which is in the pipeline. Work can only commence when
approved and funds released. New connections are funded by customers.
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The infrastructure is ageing and there is a $30m programme of asset replacement in
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the current year, this is targeted at ensuring that targets are achieved for the
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improvement in asset measured condition for specified asset groups, and delivering
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improved reliability.
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In addition $5m of refurbishment work is funded by capital.
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OPERATIONAL EXPENDITURE
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The maintenance budget for the year is $10m. This is to fund both planned
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maintenance activities including inspection, and repairs following breakdowns. Planned

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ORGANISATION AND DELIVERY

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Delivery of the capital programme is the accountability of the projects department, once
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work is authorised. The projects department has its own planning office and manages
the interface with external contractors. Packages of work are approved and managed
as projects. For asset replacement and refurbishment, the work is managed as
programmes – i.e. groups of projects are managed together to enable efficiencies in
delivery and deliver an overall programme. Capital work is 80% outsourced.
Commissioning of new assets requires the use of field services staff.
Maintenance is the responsibility of field services. The field service organization is

geographically dispersed, organized as a number districts. Maintenance teams are
responsible for delivering both planned and unplanned work. Team members are
assigned to work to support capital projects as required.
Presentation Slides
The planned maintenance programme is identified and planned using a centralised

maintenance management system (MMS), which includes the management of financial
and asset information, including data collection. The asset management department
has set up the planned work in the MMS according to the maintenance strategy, but
field services schedule the work and implement it.
Breakdown repairs are initiated via a call centre, and processed via the MMS.
There is a local planning office in each district, which is responsible for scheduling both
planned and unplanned work, and will initiate response to breakdown reports.
The system is managed by the system management department, who are responsible
for operations of the network. Access for all work must be agreed via system
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the work, and may require co-ordination with other parties such as the transmission
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operator and generators.
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Enabling Objectives
Section 9 – Performance Evaluation
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Plan
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9 Performance Evaluation 5 Leadership

 Monitoring, measurement,
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 9 Performance
Internal audit
Support
 evaluation
Management review
Check 6 Planning
8 Operation
Do
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Performance Evaluation
• 9.1 Monitoring, Measurement, Analysis and Evaluation
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• When monitoring and measuring shall be performed

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Determining what needs to be measured, when it needs to be measured and what needs to
be reported!
It also includes reporting on the performance of the AMS itself!
Reporting shall be documented and retained as evidence that monitoring is being undertaken.
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• 9.2 Internal Audit
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The organisation shall conduct internal audits to ensure the AM system:
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Most businesses are now looking to put combined audits in place covering all the
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• Quality, Safety, Financial, Asset, Environment
This avoids repeated audits covering different aspects.
The organization needs to have a planned programme in place, with clearly defined scope,
undertaken by people who have the competence to understand the process being audited.
Results need to be reported (and escalated if required).
This internal audit activity could be contracted out to an external agency in some
organizations.
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• 9.3 Management Review
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• Top management shall review the AM system at regular intervals to ensure its
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Should cover all aspects of the AMS and delivery of AMS plans.
It should include non-conformances, monitoring information, audit results.
It should also consider changes and issues in the business and the external environment.
It does not have the same agenda as a regular management meeting agenda.
Outputs would form part of the continual improvement activity.
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Enabling Objectives
Section 10 - Improvement
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10 Improvement Plan
 Nonconformity and corrective
action
 Preventive action
 10
Continual Improvement
improvement
Act
5 Leadership
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9 Performance
Support
evaluation
Check 6 Planning
8 Operation
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Improvement
• 10.1 Non-Conformity and Corrective Action
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Both for the asset base (fix this non-conformity but are there other ones like it in the
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organization?) and in the AMS (could this issues have been identified before it became a non-
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conformity?) – creating preventive actions.
There is a need to check that the corrective action addresses the both the immediate
cause(s) and all the basic causes that led to the issue?
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Improvement
• 10.2 Preventative Action

• 10.3 Continual Improvement 14
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• The organisation shall establish processes to proactively identify potential failures and
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Analysis of data and information is crucially important, particularly in relation to failures and
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non-conformances.
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Analysis should identify what is needed – additional monitoring (e.g. additional data collection
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maintenance etc.)
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Once improvement that has been determined – follow the actions through!
• The organisation shall continually improve the suitability, adequacy and effectiveness
of its asset management and asset management system
The organization should be looking to identify areas of the AMS that can be revised to gain
improvement.
Improvement might, for example, relate to lowering risk, increasing value or improving
customer service – all will deliver to the bottom line in time.
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Exercise 5 – Checklist Preparation
In teams, based on areas selected by tutor, discuss

what needed to be covered in the checklist.
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Course Content

Day 5 Examination
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Audit Execution – Stage 2
• The opening meeting

• The audit process
• Gather information
• Verify (audit evidence)
• Compare evidence against audit criteria (audit
findings)
• Evaluate findings (audit conclusions)
• The closing meeting
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This slide outlines the steps in the execution phase leading up to the
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closing meeting.
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Opening meeting
Main purpose?
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The purpose of the opening meeting is to:
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2. Introduce the audit team 55
3. Ensure that all planned audit activities can be performed
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Activity 8
Opening meeting
15 minutes
Click here to start
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Opening meeting
Problems/issues encountered?
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Problems encountered during an opening meeting might include:
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• Best staff are available who have been audited many times
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These issues will be looked at again tomorrow and how to respond to them.
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The Opening Meeting
• Introductions – record
• Objective, Scope, issue status of Documentation
• Review audit programme
• Guides
• Logistics
• Reporting methods
• Confidentiality
• Sample
Restrictions?
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• Clarification?
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issue status of the documented quality system reaffirmed , the

programme, (a copy of which may have previously been sent to the
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the signing of any nonconformity reports if raised. Care should be

taken not to suggest that this is the sole intention of the audit.
The allocation by the company of guides for the auditor is important
since no auditor must walk about the client’s premises unaccompanied.
The meeting should not last for more than about 30 minutes.
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Activity 9
Audit evidence
10 minutes
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Activity 9: Audit evidence
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this evidence objective (data supporting the existence or verity of something – i.e. not your
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Scope
Scope of Low power Transmission Company

The asset management system of transformers,
cables, overhead lines, substations and
secondary assets such as control room
equipment, test equipment, network design and
maintenance in compliance with statutory,
regulatory, other utilities and standard
requirements
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Only to ensure scope and objective is understood by delegates.
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Objectives
Are these OK?

• To be the leading asset management organisation for our
market sector
• To achieve a 5% reduction in carbon emissions.
• To remove all bulk oil switchgear from the network by 2020
• To increase productivity by 2020
• To reduce customer complaints by 30% over the next 3
years
• To cut operational costs by 3 %
• To introduce online monitoring of 20% of assets by 2018
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Audit Party
• Auditor
• Guide
• Department representative
• Auditee
• Observers: auditee director, trainee auditor, auditor
• Interpreter
• Consultant
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Although the team leader cannot dictate who can be in attendance
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during the audit, he/she must be firm and polite if the audit party is
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too large.
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It must be made clear to all in the party that only two people should
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speak during the audit: the auditor and the person being interviewed
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at the time.
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Some auditees will ‘clam up’ if surrounded by a large party.

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Some auditees will give the ‘politically correct’ answer to the auditor’
questions if senior people from their organization are in the party.
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If an interpreter is necessary it is normal for the auditing body to select

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that person.
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Be cautious of consultants – their fee might depend on a ‘good result’

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which might make them more inclined to ‘butt in’ to answer questions.
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This tutorial is followed by exercise 5 – the opening meeting.

After the overview of the opening meeting held, this tutorial module
concludes the formal activities for day 2.
Presentation Slides
Exercise 6 – Opening Meeting
Study the video of an opening meeting about the

forthcoming assessment, the programme for which is in
the course manual.
Observe the presentation and take notes on how you

think the meeting was carried out. This will be discussed
after the presentation.
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Video minta ke mba Dewi
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Presentation Slides
Conduct of the Audit
• Enter the area

• Introductions by guide
• Explain what you want to see
• Investigate to the depth necessary
• No problems found, move on
• Don’t keep on auditing until problems are found
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An auditor is always well mannered. This applies to 1st, 2nd, and 3rd
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party auditors.
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When entering the area to be audited it is usual to be introduced by

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the guide to the person responsible for the area.

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When explaining what you want to see be concise. Don’t be drawn

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into long discussions. Some auditees might want to waste time to

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prevent the auditor finding a known problem.

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Remember, the prime objective of the audit is to verify compliance,

non-compliance is identified by defaults, so do not keep auditing for
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the sake of finding problems.

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Auditing is based on samples, therefore if no nonconformities are

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found it might mean none exist or that none exist in the sample taken.
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If a nonconformity is discovered then the sample may be increased to

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evaluate the extent of the problem.
Presentation Slides
Control of Audit
• Checklist is a servant not a master

• If potential audit trails appear, decide
• Disregard
• Note for later
• Follow up immediately
• Might affect the sample size
• Might affect the audit programme
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Very often audit trails or potential areas of concern appear. They could
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not have been planned for in the checklist.

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When such trails appear, the auditor needs to make a judgement call
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as to what action to take:

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• Ignore and continue as per checklist

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• Make a note of the new trail and if time permits follow up later
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• Pass information to colleague for use in his/her audit or

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• Disregard the audit checklist and follow the new trail

• Sample sizes might be affected if the new audit trail is followed, but
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more importantly there might be an impact on the audit programme

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• If the audit programme is likely to be affected, then the matter will

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need to be discussed with the auditee, normally through the audit

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team leader.
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Presentation Slides
Just to refresh
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What is an asset?
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This is the definition taken from BS ISO 55000:
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An asset is an item, thing or entity that has potential or actual value to an
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organization. 55
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Assets could be physical or non-physical.

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Examples of physical assets - a pump, railway line or a transformer.

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Examples of non-physical assets - a lease, a brand or intellectual property rights.

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A group of assets collected together in an asset system (see next slide) could also be
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considered as a asset.
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An example of an of asset system – a substation (which contains transformers, switches,

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cables, batteries etc.)

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Asset Value
“Asset Management is the coordinated activities of an organization to realize value
from its assets.”
(The IAM, 2012, An Anatomy of Asset Management)
“An asset is something that has potential or actual value to an organization.”

(BS ISO 55000:2014)
Utilization or
performance Cost/liability,
or income Book value
stream
Positive Negative
(value) (cost)
TANGIBLE INTANGIBLE
safety,
material, energy,
compliance,
manpower
reputation/shine,
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Tangible Intangible brand
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Asset management aims to contribute to the overall success of the enterprise. It aims to add
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value. So what is the value of an asset?
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The asset has a capital value, which might be measured as the replacement cost, the insured 55
value, or the book value (this is what would be realized if were sold).
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The asset has a utilization value: the asset delivers goods or services, which have a price that
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a customer is prepared to pay. The measures of this are the income stream or the overhead
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recovered by the operation of the asset. A piece of public infrastructure may not attract a
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cash income, but enables economic activity because of its existence.

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Value can be positive, e.g. income stream and / or capital value

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Value can be negative, e.g. cost or liability (the asset may not be worth the book value if sold
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e.g. due to disposal costs)

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The value can be tangible, (material, energy, manpower) or intangible e.g. safety,
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compliance, reputation/shine, brand.

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The concept of value within ISO 55000 family (base on ISO

55002:2018)
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ISO 55000:2014, 2.4.2 a), states:
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“The value… determined by the organization and its stakeholders, in accordance with
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the organizational objectives.
This includes:
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1) a clear statement of how the asset management objectives align with the
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organizational objectives;
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2) the use of a life cycle management approach to realize value from assets;
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3) the establishment of decision-making processes that reflect stakeholder need and

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define value.”
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ISO 55001 builds on these statements:

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— ISO 55001:2014, 4.2, states: “The organization shall determine… — the criteria for
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asset management decision making”;

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— ISO 55001:2014, 6.2.1, states: “The asset management objectives shall: … — be

consistent and aligned with the organizational objectives;…” and “— be established
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and updated using asset management decision-making criteria”;

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— ISO 55001:2014, 6.2.2, states:

“When planning how to achieve its asset management objectives, the organization
shall determine and document:
a) the method and criteria for decision making and prioritizing of the activities and
resources to achieve its asset management plan(s) and asset management
objectives”;.
These statements collectively establish the link between the concept of “realization of
value” as used in ISO 55000 and the requirements in ISO 55001, i.e. the value to be
realized for the organization and its stakeholders is expressed through the
Presentation Slides
organizational objectives, asset management objectives and decision-making

criteria. The value realized is measured through the achievement of
organizational and asset management objectives. The relationships are
shown diagrammatically in Figure A.1.
A.6 Value over the life cycle

The value derived from assets and asset systems can change over the life of
the assets. Supporting the current value and future value are likely to be the
objective of different parts of the organization.
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What is Asset Management?
• Creating value to the organization

Value and stakeholders
• Translating organizational objectives

Alignment into asset-related objectives
Leadership • Defined roles and accountability
Assurance • Assets fulfil their required purpose
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Value – defining how the asset adds value to the organization across its life cycle.
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This needs to take into account the cost of the asset throughout its life cycle.
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Alignment – making sure that asset management objectives are aligned to, and support, the
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organizational objectives.
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Leadership – making sure that there is clear accountability and authority in the management
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of assets.
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The responsibility and accountability for the asset needs to be defined in every element of the
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life cycle of the asset.

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Assurance - making sure that assets (and the asset management system) deliver the value
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that is required of them throughout their life cycle.

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What is an asset • A set of assets that interact or are

system? interrelated
What is an asset • Assets that are within the scope of

portfolio? the asset management system
What is an asset
• A management system for asset
management management
system?
• The co-ordinated activity of an

What is asset
organization to realize value from
management? assets
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The definitions shown on the slide are taken from BS ISO 55000.
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An asset system is a collection of assets that are related to each other.
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For example a vehicle could be considered as an asset system – comprising of a number of
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assets such as engine, gearbox, body shell etc.
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An asset portfolio is the collection of assets that the asset management system relates to.
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For example the asset portfolio of an electricity distribution system could include all the
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substations, overhead lines, cables and other equipment across the whole of the geographical
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area it is responsible for. It may also include fleet vehicles and IT systems etc.
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An asset management system is the management system for managing the assets in the
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asset portfolio.
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For example it may include policy and strategy documents, procedures, processes and plans
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covering all aspects of the assets in the asset portfolio.

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Note that an Asset Management System is NOT a software application for managing assets –
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however a software application or enterprise solution (such as a work management

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application, asset register system or asset records system) may be an integral part of the
AMS.
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Relationship between asset portfolio, asset management
system and asset management
The capabilities for managing the asset
Managing the portfolio such as leadership, culture,
organization
motivation and behaviours
Asset
management Policies, strategies, procedures plans and
processes of both the assets and the asset
Asset
management system itself covering the
management whole asset life cycle
system
The assets and assets systems that make

up the asset portfolio covered by the asset
Asset portfolio
management system
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This slide defines the relationship between asset management, the asset management system
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and the asset portfolio. It is taken from BS ISO 55000:2014.
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ISO 55000 defines a management system for asset management in the same way that ISO
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9000 defines the management system for quality management.

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The asset management of the organization (as part of managing the organization) is about
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having the leadership, culture, motivation and behaviours to apply an asset management
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system to an asset portfolio.

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The asset management system will cover the whole asset life cycle from conception to
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disposal of assets.
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• Resolving the conflict

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whole lifecycle cost/performance/risk optimization is needed
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Decisions about assets are always a compromise between the cost of the asset (initial and
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running cost), the performance that is required and the risks related to the asset (for example
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asset not performing its function to deliver the performance or impact of asset failure).
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The organization needs to define the right optimal position for the business – each business
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may be different.
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Risks may also be considered to include both risks and opportunities.

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The optimal position may change over time (for example as asset age or as performance
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Conflicting Organizational Objectives
SPEND LESS ACHIEVE MORE
• Lower Operating and • Greater Reliability

Capital Costs
• Better Performance
• Lower Maintenance
• Longer Life
Costs
• Greater Safety
• Reduce Downtime
• Improve Bottom Line
We need to find the optimum
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This picture represents the challenge facing the asset manager.
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There are constant pressures on the costs, both capital and operational expenditure and
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increasing expectations of asset performance e.g. improved reliability, longer life, reduced
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environmental impact, safety etc.
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The challenge is; how to make the right decision particularly when dealing with many assets
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and asset systems, all with complex interdependencies.

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Presentation Slides
Asset Management Strategy
• Essential Features
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A asset management strategy is the mechanism for delivering organizational objectives and
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incorporating the prioritised requirements of the asset portfolio into credible plans for delivery.
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By documenting the strategy, methodology and decision criteria used to create the strategy it
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can be applied in a consistent manner and updated when appropriate.

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In principle the asset management strategy starts by considering the present state of the
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assets, including condition, performance and criticality operation and maintenance, defines
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the required state at a point in the future (in order to deliver the organizational objectives)
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and defines the objectives to get to that state.

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In practice an organization may have both an over-arching (or high level) asset management
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strategy and sub-strategies which are asset-type or asset-system based.

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It is fairly normal for an asset management strategy and objectives to go through several
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iterations before they are confirmed or when revision is triggered.

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Occasionally there may be an irreconcilable conflict between what can be delivered and the
organizational strategic plan (OSP). When this is the case it must be referred upwards as the
OSP may need to be revisited.
‘Long term’ is not defined and will be case specific. ‘Long term’ for a water utility, where the
assets are expected to be available in perpetuity, will be very different from that for a power
station in the last 5 years of its working life.
Presentation Slides
Effective communication
Eye contact
Facial expression
Gestures
Posture
Haptic/Touch
Personal ` ` ` Culture
space ` `
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Perhaps the biggest challenge for the auditor is the fact that finding out information depends,
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amongst other things, on communication skills. Within a very short time of meeting
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someone the auditor needs to have developed a degree of rapport with that person to
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obtain the facts essential to the investigation whilst remaining objective. If these facts are
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indicative of a lack of management control in the area, then the auditor needs to be tactful in
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the way these findings are presented.

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The main method of soliciting information is by asking questions in a series of interview

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situations. Though not always appreciated, the best interviewers are those who say least and
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have an ability to listen or hear what is being said. By combining this with the right kind of
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attitude and tone, the auditors generate an atmosphere in which good communication can
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take place.
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The interviewee (the auditee) must not feel threatened by the auditor. Many people are
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easily intimidated by auditors. The auditor can avoid generating this by being polite,
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patient, slightly informal and not afraid to smile. Showing interest in what people say is
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essential. Holding a degree of eye contact, small verbal acknowledgements, ‘I see’, ‘ah’,
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‘yes’, and so on will show that the ‘transmission is being received’, as will the right facial
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expression and head movement. There are no standard expressions and head movements
recommended to elicit information, each auditor will develop their own style.
It often happens that the auditee, (because the majority of them are human), misunderstands
a question or is determined to tell the auditor about some other matter. They may even say
something which the auditor knows not to be true. If the auditor interrupts abruptly, or
directly contradicts the auditee, easy communication will not continue.
At the end of the ‘interview’ the auditor should thank all auditees for their help and time,
regardless of whether it was beneficial or otherwise.
Presentation Slides
Opinion questions are often neglected. There is a danger in straying too far from fact, but this
type of question can be very useful for gaining someone's attention or for gaining new
approaches to problem solving. They indicate that the auditor regards the auditee's view as
important, thus raising the auditee's self image, and encourages auditees who regard
themselves as the ‘local expert' to say more. They can also encourage junior people in an
organization to say more: ‘What do you think would be the most effective . . . ?', ‘How would
you go about . . . ?’.
Please note: When conducting interviews, the careful selection of the types of question used
is therefore important (including appreciative inquiry).
Non-verbal questions may seem to be a contradiction in terms, but questions do exist in this
form. For example, the raising of the eyebrows whilst maintaining eye contact can indicate a
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remembered, with perhaps then more focus applied on the type of questions to use in finding
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objective evidence.
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Activity 10
Effective communications
5 minutes
Click here to start
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Activity 10: Effective communications
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OPTION 1: e-learning module on ‘Questioning Techniques’

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Duration:
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5 minutes classroom e-learning

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5 minutes to create learning test questions (with your neighbour) for the rest of the class
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Directions:
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The tutor will now run an e-learning module for the rest of the class; please listen and take
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notes. If the tutor is going too fast for you: Please slow him/her down!
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When this is finished, please reflect on what you have learnt, and discuss any learning points
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with your neighbour. Think of questions (in your pairs) that you could ask - to test the other
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OPTION 2:
Duration:
10 minutes in pairs
Directions:
In pairs, the tutor will provide you with two types of questions from the below:
1st pair – Open and Specific
2nd pair – Leading and Closed
3rd pair – Hypothetical and Reflective
4th pair – Probing and Rhetorical
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5th pair – How could you funnel these questions to come up with an audit finding? Which
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ones would you start with etc. and end with?
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Open Questions
• Tell me
• Who (does it)
• What (is done)
• Where (is it done)
• Why (is it done)
• When (does it get done)
• How (is it done; often is it done)
• Show me
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The art of good auditing is to obtain as much information as possible in
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the shortest time. Open questions make this more possible. A full
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answer will always be required.

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Questions
• Don’t waste time by asking

• Unrelated questions
• Rhetorical questions
• Too many closed questions
• Do ask open questions
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Time is of the essence in auditing. Questions should be aimed at
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obtaining answers to related matters.

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Closed questions are useful for the verification of the information noted
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Note Taking
Recording the objective evidence

• Admissible statements
• Document numbers and issue/revision levels
• Identifiers
• Departments
• Name of auditee
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Auditors must not rely on memory, therefore note taking is important.
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Notes must be complete and accurate.

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In some instances, it is a good idea to verify the observations with the

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auditee before writing the notes.

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Minimum information necessary for good notes include location,

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Note Taking
• Notes could be used as reference for

• Immediate investigation
• Investigation later
• Use by a colleague
• Subsequent audits
• Notes must therefore be
• Legible
• Retrievable
• Sufficiently detailed
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The value of the notes taken during the audit cannot be understated.
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Using the notes the auditor might decide to follow a new audit trail or
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use later during the audit. They may pass the notes to a colleague
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scheduled to audit another area.

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Notes might need to be referenced during the closing meeting should

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any clarification be required by the auditee.

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Because of the importance of notes they must be indexed to permit

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retrievability and be legible.

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Note Taking
• Notes taken during an audit are a record of

• The audit sample taken
• What was reported
• What was observed
• Notes may be referenced by subsequent auditors
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Notes must contain all identifiers and sample sizes taken during the
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audit.
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Some of the notes taken will be used in compiling the final audit
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report. Other notes can be used to support nonconformity reports.

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Notes allow references to be made should findings be unclear or the

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Auditors might refer to previous audit notes at the planning stage.

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They must be legible.

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Verification
• Random basis
• Chosen by the auditor
• Permission sought
• Establish and agree the facts
• Remain objective
• Always be polite
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All information gathered must be verified before it can be used in the
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audit report.
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Samples must be taken at random otherwise they will not be

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representative. They should be selected by the auditor and not the

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auditee.
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Auditors should not touch or handle client’s product etc. without first
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seeking permission.
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Ensure that the facts are agreed by the auditee before recording them
in the notes.
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Impartial does not mean uninterested. Auditors should not display

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emotions which could be interpreted as critical of the auditee’s system.

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Good auditors always remain polite.

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Presentation Slides
ISO 5500X Structure – 3 Documents
• ISO 55000 - Asset management — Overview, principles and

terminology
• ISO 55001 - Asset management — Management systems —

Requirements
• ISO 55002 - Asset management — Management systems —

Guidelines for the application of ISO 55001
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As a reminder, we are explicitly looking at the requirements contained in the ISO 55001
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document – the requirements for a:
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management system for asset management.
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with software tools sometimes called Enterprise Asset Management (EAM) Systems. EAM
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systems are merely information management tools that are useful aids to good asset
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management (holding asset-related data and facilitating work planning and management).
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10 Improvement
 Nonconformity and corrective 4 Context of the organization
action  Understanding the organization and its context
 Preventive action  Understanding the needs and expectations of the
 Continual10 Improvement
improvement stakeholders
 4 Context ofthe
Determining the organization
scope of the AM System
Act Plan
7 Support
9 Performance Evaluation  Resources 55 Leadership
Leadership
 Monitoring, measurement,  Competence  Leadership and commitment
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analysis and evaluation  Awareness  Policy
 7
Communications
 9 Performance
Internal audit  organizational role, responsibilities
 Support
Information
 evaluation
Management review and authorities
requirements
 Documented
information
Check 66Planning
Planning
 Objectives
8 Operation 8 Operation  Planning to achieve AM objectives
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As a reminder, the requirements of ISO 55001 cover all the elements of the Plan, Do, Check,
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Act, cycle, and are organised according to the Annex SL structure for management systems.
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Relationship with other management systems
OHSAS 18001
Health & Safety
Management
(ISO 45001)
ISO 31000
Risk Management
guidelines ISO 55001
Asset
Management
ISO 14001
Environmental ISO 9001
Management Quality Management
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When auditing against ISO 55001 you will often find other management systems in place.
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The client may have an integrated management system for assets and their management,
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quality, environment, health & safety and/or risk management. So planning for an audit of
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the asset management system should: 55
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• Seek efficiencies in relation to auditing common elements, and

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• Test the degree of successful integration and alignment (each standard is required to align
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to other such standards)

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Some practical issues may be encountered in this regard if the different management systems
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are not yet aligned to the ISO Annex SL structure. However, during 2014 and 2015, the most
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commonly used systems - ISO 9001, 14001 and OHSAS 18001 (being converted into ISO
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45001) - are all being updated to this structure, so the ISO 55001 alignment should prove
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relatively straightforward.
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Enabling Objectives
System documentation
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1:
considered as steps to the achievement of learning outcomes. For example, in planning an
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audit to ISO 55001, it is useful to know where to find specific requirements for system
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documentation.
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ISO 55001 has a number of requirements for documentation within the management system.
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However these are not always directly itemised within the clause. There are several cases
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where documentation is indirectly required (referenced in one clause as needed additional

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content or coverage elsewhere) or it is inferred.

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There is also a ‘catch-all’ requirement in section 8.1 requiring organizations to have

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documentation to “to the extent necessary to have confidence and evidence that the
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processes [needed to meet ISO 55001 requirements and implement actions] have been
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carried out as planned”.

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Documentation is only a small part of auditing against ISO 55001 – the requirements for good
asset management are mainly oriented towards evidence of good practices rather than
adequate documentation. So, although the following represents an important validation
checklist, more important are the appropriate and effective usages of such documentation,
and the alignment of their contents (both between documents and with observed asset
management activities and achievements).
Presentation Slides
ISO 55001 Requirements for Documentary Evidence
4.1 4.2 4.3

Understanding the Understanding the needs and Scope of the asset
organization and its context expectations of stakeholders management system
4.4 & 6.2.1 5.2

Asset management Asset Management
objectives & SAMP Policy
6.2.2 6.1
Asset Management Actions to address risks 8.3 7.2
Plans and opportunities
Outsourcing Competence
7.6.1 & 7.6.3

8.1 8.2 Documented
Operational planning Management of Information
9.1 and control Change
Monitoring,
measurement, analysis 9.3
and evaluation 9.2.2
Internal audit
Management 7.5
review Information
requirements
10.1 10.2
Nonconformity and
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corrective action
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This diagram shows the requirements for documentary evidence specified in the individual
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clauses, plus the indirect/inferred requirements.
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Explicit documentation requirements are shown in the bold text and heavily outlined boxes. 55
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Indirect documentation requirements, originating from requirements from other clauses, are
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shown in lighter shaded boxes, along with the dotted lines from which the indirect/inferred
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requirement originates.
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Where there is no documentary evidence specifically required in some clauses of the

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standard, it would still be expected that most businesses would provide evidence by way of
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documentation to satisfy the requirement.

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Where documentary evidence can not be provided to comply with the requirements of any of
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the clauses, the organization should be challenged to show how the requirements of the
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clause can be achieved in a consistent manner that can be communicated to others (e.g.
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stakeholders) and be provided in a (business) sustainable manner.

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Presentation Slides
Exercise 7 - Documentation
In teams, discuss what documentation will you be expected

to see in the course of auditing?
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Although the team leader cannot dictate who can be in attendance
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during the audit, he/she must be firm and polite if the audit party is
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too large.
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It must be made clear to all in the party that only two people should
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speak during the audit: the auditor and the person being interviewed
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at the time.
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Some auditees will ‘clam up’ if surrounded by a large party.

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Some auditees will give the ‘politically correct’ answer to the auditor’
questions if senior people from their organization are in the party.
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If an interpreter is necessary it is normal for the auditing body to select

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that person.
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Be cautious of consultants – their fee might depend on a ‘good result’

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which might make them more inclined to ‘butt in’ to answer questions.
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This tutorial is followed by exercise 5 – the opening meeting.

After the overview of the opening meeting held, this tutorial module
concludes the formal activities for day 2.
Presentation Slides
The following is a checklist of the documentary evidence required as a minimum:
4.3 Scope shall be available as documented information

4.4 Develop a SAMP which includes documentation of the role of the asset management system
5.2 Policy available as documented information
6.2.1 Documented information on the asset management objectives
6.2.2 Document asset management plan(s) to achieve the asset management objectives
6.2.2 When planning how to achieve its asset management objectives, the organization shall
document:
6.2.2 a) the method and criteria for decision making and prioritizing of the activities and
resources to achieve its asset management plan(s) and asset management objectives
6.2.2 b) the processes and methods to be employed in managing its assets over their life cycles
6.2.2 c) what will be done
6.2.2 d) what resources will be required
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6.2.2 f) when it will be completed
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6.2.2 g) how the results will be evaluated
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6.2.2 h) the appropriate time horizon(s) for the asset management plan(s)
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6.2.2 i) the financial and non-financial implications of the asset management plan(s)
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6.2.2 j) the review period for the asset management plan(s) (see 9.1)
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6.2.2 k) actions to address risks and opportunities associated with managing the assets, taking
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into account how these risks and opportunities can change with time, by establishing processes
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for:
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— identification of risks and opportunities

— assessment of risks and opportunities
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— determining the significance of assets in achieving asset management objectives

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— implementation of the appropriate treatment, and monitoring, of risks and opportunities

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7.2 Appropriate documented information as evidence of competence

7.6.1 Documented information as required by this International Standard
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7.6.1 Documented information for applicable legal and regulatory requirements

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7.6.1 Documented information determined by the organization as being necessary for the
effectiveness of the asset management system, as specified in 7.5
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7.6.3 Documented information of external origin determined by the organization to be necessary

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8.1 Documented information to the extent necessary to have confidence and evidence
that the processes have been carried out as planned
8.3 Document how outsourcing activities will be controlled and integrated into the organization’s
asset management system [to include a) – c)]
9.1 Documented information as evidence of the results of monitoring, measurement, analysis and
evaluation
9.2.2 e) Documented information as evidence of the results of the implementation of the audit
programme and the audit results
9.3 Documented information as evidence of the results of management reviews
10.1 Documented information as evidence of the nature of the nonconformities or incident and any
subsequent actions taken and the results of any corrective action
Presentation Slides
Enabling Objectives
4 themes in auditing to BS ISO 55001
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The best way to plan an ISO 55001 audit is to organize the investigation into four themes.
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These correspond to:
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1. Purpose: understanding context, scope and organizational strategic objectives (defines
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values and direction for asset management)

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2. Alignment: traceable ‘line-of-sight’ connectivity between the strategic objectives, asset

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management plans and day-to-day work activities (ensures single-minded, collaborative

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delivery)
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3. Continual improvement: not just in good intentions and process capability, but in
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demonstrated normal practice (asset management needs to be dynamic and adaptive)

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4. Asset management enablers: the generic elements that facilitate integration, co-
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ordination and sustainability of good asset management practices.

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To understand these themes we will look at the management system diagram from ISO
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55002.
Presentation Slides
Stakeholder and organisational 4.1 Understanding the organisation and is context
The Elements context 4.2 Understanding the needs and expectations of the
stakeholder
5.1 Leadership and commitments
5.3 Organisational roles, responsibilities and authority
Organisational plans
and organisational
objectives
4.3 Determining the scope of Asset management
the asset management system 5.2 Policy
policy
6.2.1 Asset management
objectives
Strategic asset
management plan
Asset management
objectives 4.4 Asset management systems
6.2.2 Planning to achieve asset
management objectives 6.1 Actions to address risks and
8.3 Outsourcing (scope) opportunities for the asset management
system
Plans for developing
Asset management asset management
plans systems and
relevant support
8.1 Operational planning and
control
7.1 Resources
8.3 Outsourcing (control)
7.2 Competence
8.2 Management of change
Implementation of asset Asset management 7.3 Awareness
management plans system and relevant 7.4 Communications
(Life cycle activities) support elements 7.5 Information requirements
7.6 Documented information
Asset portfolio 8.2 Management of change

9.1 Monitoring, measuring, analysis and evaluation
9.2 Internal audit
9.3 Management review
10 Improvement
Performance evaluation and improvement
Source:
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The primary flows and relationships between AMS elements are illustrated in this
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diagram (from ISO 55002), along with the clauses applicable to their primary
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processes. This is useful in planning an audit because we can group areas of
requirements into the main themes contained in such a system.
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Theme 1: Stakeholder and organisational

context
4.1 Understanding the organisation and is context
4.2 Understanding the needs and expectations of the
stakeholder
Purpose
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 Resources
7.2 Competence

9.2 Internal audit
10 Improvement
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For example, Theme 1 is Purpose: understanding context, scope and organizational
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strategic objectives.
1:
This provides a natural grouping of the elements at the top of the diagram, and is
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therefore subject to the clauses 4.1, 4.2, 4.3, 5.1, 5.2, 5.3, and 6.2.1
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Presentation Slides
Theme 2:
Stakeholder and organisational
context 4.2 understanding the needs and expectations of the stakeholder
5.1 leadership and commitments
Alignment
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 resources
7.2 Competence

9.2 Internal audit
10 Improvement
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Theme 2 is Alignment: requiring a traceable ‘line-of-sight’ connectivity between the
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strategic objectives, asset management plans and day-to-day work activities.
1:
This provides the core flow down the centre of the diagram, and is primarily covered
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by clauses 5.2, 6.2.1, 6.2.2, 8.1, 8.2 and 8.3.
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There are also some elements of 6.1 that also need to be considered for such
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alignment.
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Note also that 8.3 (outsourcing) has requirements for both the planning and the
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context
Continual Improvement 4.2 understanding the needs and expectations of the stakeholder
and organisational
objectives
5.2 Policy
the asset management system policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
8.3 Outsourcing (control) 7.1 resources
8.2 Management of change 7.2 Competence

9.2 Internal audit
10 Improvement
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Theme 3 is Continual Improvement: not just good intentions and documented
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processes but in demonstrated normal practice.
1:
This provides the feedback loops from both the portfolio of assets (their performance,
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reliability etc.) and the assets management activities (their effectiveness and
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efficiency). Like other management systems, the Plan-Do-Check-Act cycle is vital, and
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is mainly covered by clause 9 and 10 along with the management of change covered
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in 8.2.
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Presentation Slides

context
Enablers
stakeholder
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 Resources
7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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Theme 4 is Asset management enablers: the generic elements that facilitate
20
integration, co-ordination and sustainability of good asset management practices.
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The management system is, itself, one such enabler (so 4.4 and 6.1 comprise part of
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this theme). However the more specific requirements for ‘enabling’ resources and
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capabilities lie in a combination of section 5 (leadership, roles & responsibilities) and

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section 7 (resources, competencies, communications & information management).

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Note that planning for developing appropriate asset management resources and
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capabilities should derive from a combination of the SAMP, the Asset Management
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plans and from the feedback processes of continual improvement. Evidence of the
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outputs and benefits of the enablers should be sought in the planning processes, in
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operations/ delivery activities and in the processes of continual improvement.

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Enabling Objectives
Theme 1 – Purpose
Requirements: Context & Stakeholders
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We will start with the ‘Theme 1 – Purpose’ which verifies that the organization has a clear
1:
understanding of the internal and external factors shaping its activities and priorities, and that
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these, along with the expectations of various stakeholders, are clearly reflected in the
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objectives that are set.
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Asset Management is all about realizing value from assets (definition in ISO 55000). And
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value is determined to be that which best delivers the organization’s objectives. So the
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theme of Purpose is a vital reference and starting point for all of the asset management
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system.
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context
Purpose
stakeholder
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 Resources
7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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Theme 1 - Purpose covers:
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1:
• Understanding the organization’s context, and the requirements and expectations
of stakeholders
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• The translation of these (by leadership) into clear organizational objectives (and
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asset management objectives), and thereby defining the appropriate scope of the
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asset management system.

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This is represented by the natural grouping of the elements at the top of the
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management system diagram, particularly clauses 4.1, 4.2, 4.3, 5.1, 5.2, 5.3 and
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6.2.1.
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4.1 - Understanding the organization and its

context
• External and internal issues
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‘Relevant’ external and internal issues
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• The organization must be able to demonstrate how these have been identified and taken into
1:
account. Coverage would normally include a SWOT (Strengths, Weaknesses, Opportunities and
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Threats) analysis and systematic review of external and internal opportunities and constraints.
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• Relevant external issues would include the legal or regulatory framework, the volatility
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of the technology and commercial environment, the predictability of customer

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demand, the effects of competition and the risks or flexibilities associated with supply
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chain dependencies
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• Relevant internal issues would normally include the scope and health of the asset
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portfolio and the asset management capabilities (e.g. resources, processes and
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management system)
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• Not a specific requirement to be documented but the organization should be challenged if

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such documentation is not made available. Section 8.1 ‘Operational planning and control’
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requires the keeping of documented information to the extent necessary to have confidence
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and evidence that the processes have been carried out as planned.
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Linkages also need to be checked:

• 8.1 refers to meet the requirements of 6.1 ‘actions to address risks and opportunities for the
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asset management system’. 6.1 in turn requires the consideration of ‘issues’ in 4.1 and
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‘requirements’ in 4.2
• The organization must be able to show that the AM Objectives (what AM aims to
achieve/deliver) align with the organizational objectives (what the business needs).
organizational objectives, in turn, should be directly and traceably linked to the identified
stakeholder expectations (4.2) and/or context ‘issues’.
Typical such links might include:
• Regulatory pressure (stakeholder expectation) to invest in core infrastructure, leading to an
explicit AM objective to grow asset system capacity by xx% within yy years
• Unreliability of the current asset systems (internal context issue) is to be addressed with an
AM objective of reducing asset failures by a% within b years
• AM Objectives are required to be documented (covered later in the course)
Presentation Slides
4.2 – Needs And Expectations of Stakeholders
A. Relevant stakeholders
B. Requirements & expectations
C. Criteria for decision-making
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A) Who are ‘relevant’ Stakeholders?
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• As asset management systems have such wide-reaching dependencies and influences, ‘relevant’
1:
stakeholders are often all the stakeholders of the organization. At very least they should
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include customers, owners/investors, employees, suppliers, contractors, local society and
55
regulators.
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B) Stakeholder requirements & expectations

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• The requirements and expectations of relevant stakeholders need to be identified and taken
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into account in the decision-making process. Any absolute (e.g. compliance) requirements, and
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different degrees of expectation and stakeholder significance, must be evident in prioritizing

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processes, the risk management system and decision-making criteria.

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• Stakeholders and their expectations do not have a specific requirement to be

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documented but the organization should be challenged if such documentation is not made
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available. For example, relevant stakeholders should be clearly reflected in the organizational
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and asset management objectives, in criteria used for prioritisation, in decision-making and
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communications processes.
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C) Criteria for decision making

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• The criteria for decision-making needs to be identified and documented (6.2.2 a)). ISO
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55001 does not specify what they should be, but requirements a), b), h), i) and k) of 6.2.2
mean that the criteria must at least incorporate whole asset life cycle impact, risk (and how
risks will change with time), financial and non-financial implications.
• In practice, such criteria must be able to resolve conflicting requirements of different
stakeholders to determine the optimal compromise. For example, in a cost-versus-risk trade-
off, the decision criterion should be the lowest combined impact of ‘costs+risks’ over the asset
life cycle – sometimes called ‘total cost of ownership’, ‘life cycle cost’ or ‘total business impact’.
• Auditors should, however, be wary of mis-usage of these terms to cover just the ‘cash’
elements of capital expenditure and operating costs: decision-making criteria must incorporate
risk and non-financial factors.
Other links:
• 4.3 (Scope of AMS) and 6.1 (risks associated with AMS) require consideration of ‘issues’ in 4.1
and ‘requirements’ in 4.2.
Presentation Slides
4.3 – Scope of the Asset Management System
A. Context issues
B. Stakeholder requirements
C. Interactions with other management systems
D. The asset portfolio
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The AMS scope must be documented and shall consider:
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A. Relevant external and internal context issues (4.1)
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B. Requirements and expectations of stakeholders (4.2)
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C. Interaction with other management systems (the systems needs to be specified,
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alignment with ISO 9001, 14001, OHSAS18000.ISO45001 and ISO 31000)

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D. The AMS scope must define the Asset portfolio to which it relates:
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• This should be tested/explored, particularly at the boundaries (which assets are excluded
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and why?), the mix of physical and non-physical asset types comprising functional
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systems, and organizational interfaces (who is responsible for what). The concept of
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the ‘duty holder’ is valuable for such a test: where does the governance and risk
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responsibility lie?
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• For organizations providing services, such as construction or maintenance activities,

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great care is needed to define the scope and applicability of the ISO 55001
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certificate. The management system relates to an asset portfolio for which the
organization has asset condition/performance/value responsibility, adequate degree of
decision-making freedoms, and opportunities to optimize (within contractual constraints)
the combination of costs, performance, risk and asset life cycle/sustainability.
• Where identifiable assets are outside the scope of the AMS, service level agreements
should be in place, particularly where such assets represent a supply chain dependency for
the asset systems within scope and for the operation of the Asset Management System.
Presentation Slides
4.4 – The Asset Management System
A. Asset Management System (AMS)
B. Strategic Asset Management Plan (SAMP)
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A. The organization is required to create, implement, maintain and continually
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improve the AMS (scope required to be documented in 4.2). Remember, however, that
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some clients may use the term AMS to describe their software tool for asset information
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management - sometimes also called an Enterprise Asset Management (EAM) System.
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B. The organization is required to develop a SAMP to describe how documented asset

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management objectives will be achieved. The SAMP and its content is not well defined
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in ISO 55001: it corresponds to the ‘Asset Management Strategy’ in BSI PAS 55:2008
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(where its role & content is better explained). It should adequately convey the long term
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intended approach to managing the asset portfolio, the desired primary methods and
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processes to be applied, and the staged progress or achievement measures (asset

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management objectives).
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SAMP is not explicitly required to be documented beyond the requirement that AM

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Objectives must be documented within a SAMP (6.2.1). The organization should be

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strongly challenged if a consolidated SAMP or ‘asset management strategy’ is not made

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available; such vital documentation is implied by the 8.1 clause and is fundamental to the
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aligned and consistent application of the AMS.

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Important links:
5.1 requires leadership to ensure the SAMP is established and compatible with organizational
objectives.
6.2.2 requires asset management plans to be aligned to the SAMP.
The SAMP is also a key starting point for Theme 2 - Alignment.
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Exercise 8
• Theme 1 – Purpose: Stakeholders and Context issues
10 minutes
Click here
to start
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Activity 2: Theme 1 – Purpose: Stakeholders and Context issues
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Identify the evidence might you expect to find of an organization’s consideration of their AM
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stakeholders, their expectations and other AM-relevant ‘context’ issues.

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Duration:
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10 minutes in table groups

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5 minutes feedback
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Directions:
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Working in groups, consider the question below and record examples/comments on a flip
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chart.
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What evidence might you expect to find of an organization’s adequate

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consideration of the AM stakeholders, their expectations and other AM-relevant

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‘context’ issues?
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Enabling Objectives
Theme 1 – Purpose
Leadership
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Leadership requirements form part of all 4 Themes (Purpose, Alignment, Continual
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Improvement and Enablers). Section 5 requirements in ISO 55001 are thus extensive and
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critical coordinators for the whole AMS.
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In the context of Theme 1 - Purpose, an organization’s top management determines and
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communicates organizational direction. We will now look at what this entails.

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Presentation Slides
5.1 Leadership and Commitment
• ‘Top Management’ Commitments
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Serious problems in Asset Management occur when Top Managers have competing priorities,
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budget responsibilities, personal reward mechanisms and conflicting horizons for their
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objectives. 5.1 requires such Top Management to set a single overarching agenda (AM policy,
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SAMP, AM objectives, all visibly aligned to the organization’s objectives). 55
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In many cases, a specific Top Manager will be given responsibility for such integration and for
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the AMS – in such cases, it is important to test that other members of the Top Management
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team are supportive and aligned to this agenda.

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5.1 Leadership requirements relevant to the ‘Purpose’ theme are:

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• Ensure AM Policy, SAMP and AM objectives established and compatible with

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organizational objectives: the ‘rules of the game’ must be clear, and an evident
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‘cascade’ of organizational goals

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• Communicate importance of asset management and conforming to AM system

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requirements
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• Direct and supporting persons to contribute to the effectiveness of the AM system
• Promote cross-functional collaboration within the organization. This is where words

and actions often conflict: auditors need to test for evidence of active and effective
promotional activities
Each of the above points need to be tested.
• No specific requirement for the above points to be documented but the

organization should be challenged if such documentation is not made available
Presentation Slides
Approaching Top Management
• Top Managers
• May not have been involved in an audit before
• May be cautious about being involved
• Therefore important to plan
• The approach
• Key business topics
• Use current business terminology
• Timings
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If we are to ensure that the requirements of the standard are to be
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assessed effectively. It will be vital that the assessment planning tools

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are used to communicate clearly to Top Management.

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Presentation Slides
Exercise 9 – Top Management
In teams, using the information gained so far

determine what sort of questions could be
asked of top management.
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Tutor to ensure that the delegates know that the questions should
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relate to clause 5 requirements

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Refer to tab 4 page 5.

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Record results on flipchart for discussion and for use in exercise 13

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Presentation Slides
Enabling Objectives
Theme 2 – Alignment
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This section deals with ‘Theme 2 – Alignment’. This covers the linkages and ‘line of sight’
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clarity of alignment between organizational objectives down into AM policy, the Strategic
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Asset Mgmt Plan (SAMP), specific asset management plans and into operational activities.
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Presentation Slides

context
4.2 understanding the needs and expectations of the stakeholder
Alignment
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 resources
7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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The primary flow (broad arrow) shows the essential top-down “line of sight”
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connections needed between organization’s Purpose (Theme 1) and the day-to-day
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activities of managing assets over their life cycles.
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There is also a bottom-up contribution to asset management strategies, objectives
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and plans, even at the initial development stage (not just in the continual
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improvement cycle). You should look for evidence of both top-down alignment, and
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bottom-up realism in asset management capabilities, and in the asset portfolio

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capabilities, constraints and opportunities.

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The interrelated requirements to ensure Alignment are covered by sections 5.2, 6.2.1,
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6.2.2, 8.1, 8.2 and 8.3.

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There are also some elements of 6.1 that also need to be considered for such
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alignment, since identified risks and opportunities, and the actions to address them,
form part of the planning process.
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Remember also that 8.3 (outsourcing) has requirements for both the planning and the
operational control aspects of using external resources.
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5.2 Policy
• ‘Top Management’ Responsibility for Establishing Policy

• Rule of the game – how we will manage our assets
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5.2 Requires Top Management to establish an asset management policy that:
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• Is appropriate to the purpose of the organization – for example: asset portfolio scale and
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criticality, decision-making freedoms and business context
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• Provides a framework for setting AM objectives – this can be difficult to validate: what is an
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adequate ‘framework?’
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• Includes a commitment to satisfy applicable requirements

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• Includes a commitment to continual improvement of the AMS

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There is a clear requirement for the AM policy to be documented.

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Each of the above points need to be tested, and the Policy content must also be checked for
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consistency with organizational plans and other policies. It also needs to be appropriate
for the nature and scale of the organization’s assets and context (e.g. regulatory compliance
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and governance might be dominant stakeholder expectations).

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Typical weaknesses encountered in AM Policies include vague aspirational desires, or

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commitments to AM processes or methods that are not universally applicable, or AM

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policy elements that conflict with other organizational policies (e.g. safety policy, in
the area of risk management).
The test criteria should include clarity of policy elements (principles to be applied and
boundaries that will not be crossed), non-conflicting content, and that the policy elements
are always applicable (compliance will be achieved whatever the cost).
Example asset management ‘principles’ within a policy might include a risk- and life cycle cost-
basis for asset management decisions, or use of cross-disciplinary team-based working
methods.
Presentation Slides
6.1 Actions to address risks and opportunities
?
Determine ‘risks and
Create actions to address Evaluate the effectiveness
opportunities’ that need
them of the actions
to be addressed
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The next ‘input’ into the Alignment theme is section 6.1, were identified ‘risks and
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opportunities’ need to be addressed.
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• The organization must be able to demonstrate how it has determined the risks and 55
opportunities that need to be addressed. This should involve historical data studies,
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real-time situation analysis (e.g. asset condition, or asset management activity

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performance) and future threat identification, both internally and externally

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• These must include consideration of the context issues (4.1) and stakeholder requirements
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(4.2)
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• The organization must also be able to demonstrate that it has created appropriate
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actions – and these should be evident in the SAMP and/or specific asset management
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plans
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• In asset management, there is a particular need (6.1 a) to identify or anticipate risks that
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change with time (e.g. asset degradation, or technology overtake/obsolescence, or

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climate change), so that appropriate actions can be planned. Many organizations have risk
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registers and simple opportunity ranking methods, however ISO 55001 explicitly requires
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the additional consideration of how risks change with time
• There is not a specific requirement to be documented but the organization should

be challenged if such documentation is not made available, since these requirements
involve application of risk management techniques which would normally be documented
Furthermore, 6.1 requires validation of the effectiveness of the actions, so 6.1 forms part of
the Continual Improvement theme also.
Presentation Slides
6.2 Asset Management Objectives and

Planning to Achieve Them
6.2.1 Asset management objectives
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6.2 is a core part of the Alignment theme – where organization objectives, AM Policy,
20
SAMP (including AM Objectives) and identified risks and opportunities (6.1) all get turned into
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action plans for asset management.
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6.2.1 requires asset management objectives to be:
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• Consistent and aligned with organizational objectives (we covered this in Theme 1 –
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Purpose)
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• Consistent with asset management policy (usually easy to check)

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• Established and updated using asset management decision-making criteria (this

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is a key test: to see how conflicting objectives are handled)

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• Included and updated in the SAMP (the only explicitly required content in
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SAMP)
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• Measureable – in fact SMART (Specific, Measurable, Achievable, Realistic, Time bound)

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• Reviewed and updated as appropriate

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There is a clear requirement for the objectives to be documented (and retained) so

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these attributes should all be checked during an audit.

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AM objectives will typically represent a mix of desired outcomes (e.g. reliability, cost and
performance targets for asset systems) and activities (e.g. rollout of capital investment
programmes or process improvements). They should be closely aligned to the Key
Performance Indicators of the organization, in turn directly reflecting the stakeholder
expectations and organizational objectives.
AM objectives shall also be:

• Monitored and communicated to relevant stakeholders: The organization must be able to
demonstrate how the activities of monitoring and communication are undertaken.
Presentation Slides
There is no specific requirement for these monitoring activities to be documented

but the organization should be challenged if such documentation to demonstrate how these
activities are undertaken and 8.1 requirements for appropriate documentation certainly apply
here.
Objectives may need to change as the requirements of the organization or stakeholders

change, or other factors change (such as costs, supply chains or technology advances). In
highly regulated industries, the AM objectives and their updates will have a strong alignment
with regulatory cycles.
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Presentation Slides
6.2 Planning to achieve asset management

objectives
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• Integration of plans and planning, both internally coherent, and aligned with other plans
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within the organization. Auditors should specifically challenge for evidence that life cycle (cross-
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disciplinary) management plans for specific critical assets provide the inputs to resource- or
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activity-specific delivery plans (e.g. outsourcing, HR, maintenance plans or capital investment
55
plans)
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• Plans must be aligned with the SAMP – this can be hard to validate if the SAMP is not a
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single, consolidated document of strategic intentions (in addition to the required documentation
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of AM objectives)
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Audits should look for evidence that such alignment exists:

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• All the activities contained in AM plans should be able to be tracked back to ‘top-down’
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requirements in AM objectives, policy and the organization plan (i.e. alignment theme)
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• Reality and deliverability attributes must reflect the capability and performance of the
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asset portfolio and of the AMS (continual improvement theme). These should be
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evident as ‘bottom up’ inputs to the plans and to their updating/changes

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There are also clear requirements to demonstrate, and document, consideration of many factors
(a-k) in asset management planning. Particularly important requirements for auditors to test
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include:
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• Planning processes must include decision-making and prioritization criteria. Audits

should look for evidence (which must be documented) of how activities and plans, and the
resources to deliver them, are selected and prioritized. Combined with requirement b) and i)
these expect the organization to take a whole life cycle approach, with both financial and non-
financial dimensions
• Audits should look for evidence (documentation or management process or management
meeting records) that such integration has been undertaken, it can be implied in section 8.1
(operational planning and control) third bullet point ’confidence and evidence’ that this is a
documentation requirement, as section 6.2.2 does not actually specify documentation of
integration activities is a requirement to meet the standard
In the following areas it is a clear requirement that documentation should be in place to meet
the requirements of the standard.
Presentation Slides
6.2.2 Planning to achieve asset management

objectives (continued)
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The processes and methodologies employed in managing its assets over their life cycles
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must be documented: this normally has at least 3 levels:
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b) Individual assets level (across their life cycles – usually only the most critical assets will
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have a ‘personal life cycle management plan – others will be grouped into asset types or
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classes, provided they perform a similar functional role and exhibit similar performance,
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risk and condition attributes)

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c) Asset management activities level; the tasks, co-ordination and resource planning for
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delivery of specific activity types, such as construction programmes, maintenance and

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inspection activities, or asset replacements

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Audits should look out for:

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• Evidence of assets being treated in different ways at different points in their life
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cycles (for example: new assets, assets in mid-life, refurbished/aging assets) and
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challenge for justification of this in terms of life cycle value effect

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• Usage of a logical range of business and decision-support tools for determining which
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activities are worthwhile and when/how often. The methods used should be demonstrably
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appropriate to the criticality of the assets and the decisions being taken. For
example, competent ‘common sense’ would be acceptable for low impact activity planning
on low criticality assets, whereas more formal, quantified cost/risk/performance and
sustainability modelling would be expected of high impact planning decisions applied to
high criticality assets
Resulting AM Plans must clearly contain:

• What is to be done, what resources are required, who is responsible, when it will be
completed, how results will be evaluated
Plans must be version controlled (to avoid confusion) and there should be a clear and
documented process for updating and re-issuing plans.
Presentation Slides
6.2.2 Planning to achieve asset management

objectives (continued)
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Time horizons of asset management plans:
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AM plans may cover many years (particularly for major capital expenditure) and should
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normally span more than one budget or regulatory cycle to avoid short-termism. Ideally they
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should cover the whole asset life cycles to which they relate. However asset life can be many
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decades in the case of certain infrastructure, so it is acceptable to demonstrate that planning

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time horizons are sufficiently long to achieve ‘steady state’ in terms of performance
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sustainability and having considered future re-investment needs.

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This is also true for plans associated with asset systems, whose ‘life’ might be infinite if
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component elements are periodically replaced and no external constraint exists - such as
reducing demand or supply chain availabilities (e.g. natural resource), or fixed period
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contractual or governance responsibility.

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Plans for improving the management system

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Time horizons for planning the improvement of the AMS itself (including, for example,
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processes, resources and capabilities) should be 3-5 years, since at least 3 years is needed to
effect substantive change to human behaviours and culture, and plans beyond 5 years are
difficult to ‘sell’ to the workforce in establishing motivation and commitment to their delivery.
When plans are being created or revised, a risk management approach must be used to
forecast timings and resource requirements. This will include contingency planning and the
incorporation of uncertainty into the plans and their revisions. This risk management
approach should align with the organizations risk management approach.
Presentation Slides
Exercise 10
• Theme 2 – Alignment: Planning
10 minutes
Click here
to start
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Activity 3: Theme 2 – Alignment: Planning
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Duration:
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10 minutes discussion in pairs

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5 minutes feedback
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Directions:
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Plans will typically exist for different types of activity (e.g. construction, maintenance, human
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resource development) on different time horizons, with different levels of detail.

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Working in pairs, identify:

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a) What particular aspects of such plans should you be looking for when auditing asset
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management plans for compliance with section 6.2.2 requirements?

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b) What linkages and alignment methods would you look for in plans for different activity
types (addressing different asset life cycle stages)?
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Presentation Slides
Enabling Objectives
Theme
Section 28 –- Operation
Alignment
Requirements: Operation
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This section deals with the final part of the ‘Alignment’ theme; Operation.
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It is represented by requirements found in section 8 – Operational Planning & Control, the
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Management of Change, and the use of Outsourcing.
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Their combined effect is to provide assurance that Asset Management plans are executed in a
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controlled, effective and efficient manner, while retaining the ‘line-of-sight’ clarity of why they
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are needed in the first place.

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Presentation Slides
8.1 – Operational Planning and Control
• Plan, implement and control actions to

• Address risks and opportunities
• Deliver Plans
• Undertake preventive actions
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Operational planning and control within asset management systems is a multi-level
20
requirement (more so than other management systems). The requirements apply to
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implementation and control of:
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• All activities and processes needed to meeting ISO 55001 requirements (i.e. AMS 55
operations)
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• The actions to address risks & opportunities (6.1)

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• The actions contained in asset management plans (6.2) and

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• Preventive and corrective actions associated with continual improvement (10)

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Evidence of the organization ‘walking the talk’ (planning, implementing and controlling) should
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be sought in each of these operational areas of activity.

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How the plans should be implemented would normally be documented (for example: in
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process diagrams)
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• It is not a specific requirement for these to be documented but the

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organization should be strongly challenged if such documentation is not made

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available as such documentation is implied and fundamental to the effective

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application of the AMS (i.e. use section 8.1 requirement for documentation to
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demonstrate ‘confidence and evidence that the process have been carried
out’)
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8.2 – Management of Change
• Risks associated with planned change
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Within the ‘operation’ activities, management of change is a vital feature of good asset
20
management. For example, a planned shutdown and inspection/maintenance can reveal the
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need for additional work, potentially extending the system downtime at great expense.
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So the changes, and any risks associated with making the changes, need to be managed and
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controlled in a similar way to other planned activities – particularly if could impact on

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achievement of AM objectives. Auditors should look for examples of how operational changes
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are handled in each of the following stages:

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• Evaluation of the need for change and any risks associated

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• Managed – controlled and communicated

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• Risks and adverse effects mitigated

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• Results reviewed, including actions to mitigate any unintended consequences

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It is not a specific requirement for these to be documented but the organization’s risk
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management process should include documentation of risks and their controls, and any risks
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associated with change management should be included within such a process.

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The key here is to identify that risk identification and assessment has been initiated.
Certification audits look for evidence of any planned changes (permanent or temporary) the
organization that could impact on the delivery of objectives (the key criteria) and look to
see that the risk management process has been triggered.
This could include such things as business reorganization, changes to roles and responsibilities
or key personnel, changes to outsourcing contracts, availability of resources and materials,
external factors (such as planning consents), legislation or regulatory requirements.
Presentation Slides
8.3 – Outsourcing
A. Risk Assessment
B. Boundary definition
C. Control
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Use of external resources to perform asset management activities is also part of the
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Alignment theme.
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A. Where outsourcing might impact on delivery of objectives (materiality test), then a risk
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assessment must be undertaken by the organization.
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• Auditors should identify where outsourced activities meet this criteria and look for
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evidence of risk assessment.

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Size of contract would normally be a good indicator of materiality but some smaller
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contracts could also be critical (for example: specialist support of control or

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communication systems, or highly specialised maintenance activities)

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B. The boundaries of any outsourced activity, and methods of control, reporting and
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knowledge and information should be clearly defined.

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• It is not a specific requirement for these to be documented but they would

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usually be defined in contractual documents. It is important that these areas are

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tested during audits to ensure that there are no gaps of understanding between the
organization and its outsourced contractors
C. Responsibility and authority within the organization for the outsourced activities should be
clearly identified (usually in job specifications and/or contractual arrangements).
• This would normally be aligned with reporting arrangements and should be tested.
Such information would include programme delivery (cost, units, milestones,
outcomes) and how changes and conflicts (for example: performance, cost or quality
issues) are managed
Presentation Slides
8.3 – Outsourcing (continued)
D. Knowledge and information sharing
E. Competence, awareness and documentation
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D. The arrangements for knowledge and information transfer should be clearly defined. This
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will normally include information about assets (e.g. technical details, location, condition,
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functional role/criticality), information about asset-related activities (e.g. the work to be
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performed) and AMS information (AM policy, relevant AM objectives, relevant risk management
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and change management processes).
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• It is not a specific requirement for these to be documented but they would usually
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be defined in contractual documents. It is important that this area is tested during audits
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to ensure that there are no gaps of interpretation between the organization and its
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outsourced contractors
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• The knowledge and information transfer should also be 2-way; with methods of data
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capture and feedback from outsourced service providers to contribute to the organization’s
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continual improvement processes

di
• The more significant the outsourcing (in terms of cost or criticality of activities) the more
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important this 2-way information flow becomes. For example records of assets installed
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(technical details, configuration, location), commissioning test results, inspection results

to
and maintenance activities may be undertaken by outsourced contractors: this

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information needs to be transferred to the organization within an appropriate time

period
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E. The organization must ensure that outsourced contractors are competent to undertake the
activities – this should be checked during the procurement process. However when contracts
have been in place for some time, personnel may have changed and the organization should
have a process for verifying that the contractor is providing competent and trained staff and
that they are fully aware of the requirements of the contract. This would normally be checked
by regular audits of the contractors work and/or qualifications.
• Auditors should check that such competency verifications are undertaken and that any
issues are addressed and monitored.
• It is not a specific requirement for these to be documented but competency
requirements would usually be defined in contractual documents and this should be tested
during audits to ensure adequate assurance in meeting 7.2 and 8.3 requirements.
• Alignment also need to be checked with 7.6 (documented information)
Presentation Slides
Exercise 11
• Theme 2 – Alignment: Management of Outsourced Activities
15 minutes
Click here
to start
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Activity 4: Theme 2 – Alignment: Management of Outsourced Activities
20
1:
Purpose:
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Understand the controls needed for use of contractors in asset management activities.
55
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Duration:
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15 minutes table group discussion

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10 minutes feedback
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Directions:
g
tin
If the organization uses a contractor to provide maintenance services for a range of critical
di
assets;
Au
r/
How would you assess that the contractor was being provided with sufficient and up-to-date
to
information?
di
Au
What controls and feedback mechanisms would you look for in relation to the outsourced
ad
activities?
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Record your key points on a flip chart.
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Presentation Slides
Enabling Objectives
Theme 3 – Continual Improvement
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20
This section deals with Theme 3 – Continual Improvement.
1:
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This is the familiar ‘closed loop’ of the Plan, Do, Check, Act cycle. However it has a number
55
of levels within an Asset Management System.
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Presentation Slides

context
4.2 understanding the needs and expectations of the stakeholder
and organisational
objectives
5.2 Policy
the asset management system policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
8.3 Outsourcing (control) 7.1 resources
8.2 Management of change 7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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SI
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In the high level AMS diagram, Continual Improvement is represented by the two
20
upwards arrows on left and right hand sides. As you can see, the performance
1:
evaluation and improvement activities stem from both the ‘implementation of AM
plans (life cycle activities)’ and from the ‘asset portfolio’. This reflects the two primary
00
55
sources of improvement opportunity within the AMS, namely the activities that occur
O
IS
(experience of what was done, how it was done, with what effect), and the assets
S
themselves (and their performance, condition etc).

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fo
However this only shows the general principle. We will now look at the specific
g
requirements and see what is involved in auditing of these feedback loops.

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Presentation Slides
9.1– Monitoring, Measurement, Analysis and

Evaluation
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The monitoring and detection of improvement opportunities is the first step, and this includes
20
the usual requirements (within management systems):
1:
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The organization must determine… 55
• What needs to be monitored and measured
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• Methods for monitoring, measurement, analysis and evaluation

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• When monitoring and measuring shall be performed

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• When the results shall be analysed and evaluated

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In the case of asset management, however, there are three different levels of such
g
tin
required monitoring:
di
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a) Asset performance (e.g. individual critical assets, or asset systems, or asset

classes/types)
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to
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b) Asset management performance (e.g. processes and activities; their effectiveness

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and efficiency)
ad
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c) Effectiveness of the AM system, including processes for managing risks and

opportunities as identified in 6.1
There is a clear requirement in ISO 55001 for documentary evidence to be retained

as evidence of the results of monitoring, measurement and analysis and
evaluation.
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Presentation Slides
9.2 – Internal Audit
• Checking that...
• The AMS meets requirements
• The AMS is effectively implemented and

maintained
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At the AMS level, in particular, the requirements specify that internal audits shall be performed at
20
planned intervals, covered all aspects of the AMS.
1:
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An ISO 55001 audit should check that: 55
• There is an internal audit programme in place
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• Audit scope and criteria are defined

IS
• It covers all aspects of the AMS (not just operational activities)

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• Internal auditors are competent to undertake the audits (audit process, subject matter
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knowledge, management system elements and requirements)

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• Audit results are reported to relevant management (and, in line with 10.1 & 10.2
g
requirements, acted upon)

tin
di
There is a clear requirement in ISO 55001 for the information to be documented

Au
(programme and results).

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to
Internal audits of asset management involve most parts of the organization, and can easily
di
Au
become non-productive if functional departments have different local priorities. Certification

auditors should therefore seek evidence that the internal audit activity is adequately rigorous and
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holistic - taking the cross-disciplinary, whole life cycle, risk-based asset management viewpoint for
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significance of findings and recommended actions. Such internal audits should be able to evidence
a clear programme with results and issues that have been reported to the relevant management.
There should be documentary evidence of this in the determination of key performance indicators
(KPIs) and in management reports, including tracking of previous approved actions to completion.
Audits of the AMS may be combined with other internal audits within the organization. For
example, contractual (for outsourced activities), safety, environment, quality and financial
management. However, where combined audits are undertaken, the AMS-specific requirements
must be explicitly included in the audit scope. The auditors must have the competence and
experience to recognise that work is being undertaken in line with requirements – otherwise there
is a danger that the focus of such audits will be biased towards such things as operational safety.
Presentation Slides
9.3 – Management Review
• Regular review
• Action tracking
• Changes in external/internal
issues and risks
• Review of performance
evaluation
• Opportunities for improvement
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The next element in the Continual Improvement theme, at the AMS level, is the
20
management review stage, covered by 9.3.
1:
00
As with other management systems, the requirements call for reviews at regular intervals
55
(determined by the organization).
O
IS
Factors to take into account in regard to the review cycle:

S
• Volatility of the organization’s external business environment (regulatory cycle,

rB
technologies, commercial circumstances)

fo
• The frequency and significance of issues arising at or between management reviews

g
tin
• The rates of change occurring within the organization

di
Au
Action tracking:
r/
• Certification audits should check that actions arising from management reviews are
to
incorporated in ‘improvement’ activities and tracked to completion

di
Au
Audits should check that changes in external/internal issues, risks and performance are
ad
included in the management reviews by sampling the agendas and minutes of management
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review meetings.
• The organization should be challenged if such documentation is not made available
There is a clear requirement in ISO 55001 for the management review process and
management review results to be documented.
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Presentation Slides
Enabling Objectives
Theme 3 – Continual Improvement
Requirements: Improvement Activities
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The final section of ‘Theme 3 – Continual Improvement’ deals with Improvement
1:
Activities.
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Presentation Slides
10 – Non-conformity and Corrective Action
• Assets
• Asset management processes/activities
• Asset management system
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Like the 9.1 requirement to monitor at 3 levels of asset management, 10.1 requires the
14
organization to effect improvements at the corresponding 3 levels:
20
a) Asset performance (e.g. individual critical assets, or asset systems, or asset classes/types)
1:
b) Asset management performance (e.g. processes and activities; their effectiveness and
00
efficiency) 55
c) Effectiveness of the AM system, including processes for managing risks and opportunities as
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identified in 6.1
IS
S
When an incident or non-conformity occurs at any of these three levels, the requirement is for:
rB
• Reaction (take action to control or correct it and dealing with consequences)

fo
• Evaluate the need for further action and implement if needed

g
• Review the effectiveness of corrective actions

tin
• Make changes to the AM system, if appropriate

di
Au
This clause is where key integration aspects of ISO 55001 compliance should be tested. Auditors
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should seek evidence of the above points at each of the 3 levels.

to
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• In the case of the ‘assets’ level, the improvement process should not be limited to exceptional
examples – there should be proportionality in the responses but a systematic process for all
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asset improvement opportunities

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• In the case of asset management level, evidence should be available that improvement process
applies to all activities (planning, competency development, procurement, construction,
operations, maintenance, risk management, performance monitoring etc).
Auditors should also check that corrective actions ‘fix’ the issue (dealt with the underlying causes)
rather than simply address the symptoms or provide a temporary solution. This is typically an
issue with asset-related problems (e.g. failures, where a rapid repair might recover asset
functionality, but the risk of further failures may be the same or even increased).
There is a clear requirement for the retention of documented information as evidence of

‘the nature of the non-conformities or incident and any subsequent action taken and the results of
any corrective action.’ Also 8.1 requirement for ‘documented information to the extent necessary
to have confidence and evidence that the processes have been carried out as planned’. 8.1 also
specifically refers to ‘corrective and preventive actions’ as determined in 10.1 and sect 10.2.
Presentation Slides
10.2 – Preventive Action
• Proactive processes to
prevent asset failure
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Strangely, clause 10.2 (Preventive action) only requires “processes to proactively identify
20
potential failures in asset performance”. i.e. it does not mention the corresponding
1:
requirement for asset management (processes and activities) where pre-emptive interventions
00
are also often needed. 55
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This requirement forces organizations out of a ‘firefighting’ mode and to manage asset
IS
reliability proactively. It involves use of ‘leading’ KPIs, inspection or condition monitoring

S
activities to provide early warning of degradation and impending failure. However there are
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three sources of information that should be considered for such proactive identification of
fo
potential failures (auditors should seek evidence of all three being used):
g
tin
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• Historical analysis of asset health and performance – for example trends in condition that
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can be extrapolated
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• Current condition information – such as inspection findings or on-line monitoring systems

to
• Future requirements and conditions analysis or modelling – for example, changes in

di
usage, demand or operating conditions

Au
ad
Systematic methodologies also exist for such processes: Failure Modes & Effects Analysis
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(FMEA) and Reliability Centred Maintenance (RCM) are widely applicable and should be
examined for scope of completion through to results implementation. Risk-Based Inspection
(RBI) and Instrument Protective Function (IPF) are more restricted in application (to high
integrity/safety-critical systems) but, where encountered, should also be checked for
appropriate scope of application.
Significant asset failures can, themselves, be triggers for inspections and preventive actions; if
the organization has other similar assets (or similar types of asset) some requirement for
inspection or checking of vulnerability might be expected (systematically or by sampling).
There is a clear documentation requirement if any incident or non-compliance is

identified (via 10.1).
Presentation Slides
10.3 – Continual Improvement
• Asset Management is dynamic

• AMS must evolve
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The continual improvement requirement applies to two levels:
20
1:
a) Asset management i.e. processes and activities
00
b) The AM system 55
O
Undertaking a regular management review provides top management with an opportunity to

IS
‘stand back’ and critically analyse asset management processes, capabilities and activities, and
S
the operation of the AMS as a whole and determine where improvements are required.
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fo
This covers all aspects of asset management and of the AMS, from creation and review of
g
tin
policy, strategy, objectives, and planning through to delivery of the plans, resourcing,
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competencies, outsourcing, communications and consultations, performance monitoring,

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identification and evaluation of issues and incidents, audits, improvement activities,

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information and risk management activities. It is helpful, therefore, to use the 4 audit themes
to
for assessing the rigour of such reviews:

di
Theme 1 – Purpose
Au
Theme 2 – Alignment
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Theme 3 – Continual Improvement (of which this requirement forms part)

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Theme 4 - Enablers
During an audit, key aspects to be checked include:

• Checking the management commitment to the review process
• Checking example agendas, minutes and actions of management review meetings for
evidence that the review:
• Covers at all elements of the AMS (use the 4 themes)
• Results in improvement actions (which may exist in more than one activity plan)
• Ensures that appropriate resources are available to make the improvements
identified within the required timescales
• Tracks improvement actions to completion
Presentation Slides
Exercise 12
• Theme 3 – Continue Improvement
15 minutes
Click here
to start
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Activity 4: Theme 2 – Alignment: Management of Outsourced Activities
20
1:
Purpose:
00
Understand the controls needed for use of contractors in asset management activities.
55
O
Duration:
IS
15 minutes table group discussion

S
10 minutes feedback
rB
fo
Directions:
g
tin
If the organization uses a contractor to provide maintenance services for a range of critical
di
assets;
Au
r/
How would you assess that the contractor was being provided with sufficient and up-to-date
to
information?
di
Au
What controls and feedback mechanisms would you look for in relation to the outsourced
ad
activities?
Le
Record your key points on a flip chart.
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Presentation Slides
Enabling Objectives
Theme 4 – Enablers
Leadership,
Resources, Training and Competence
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The final auditing Theme addresses the Enablers for the management system – Leadership,
1:
Resources, Training and Competence.
00
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Presentation Slides

context
Enablers
stakeholder
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 Resources
7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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Asset management enablers are the generic elements that facilitate integration, co-
20
1:
The management system is one such enabler (so 4.4 and 6.1 comprise part of this
00
55
theme). However the more specific requirements lie in a combination of section 5
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(leadership, roles and responsibilities) and the ‘Support’ section 7 (resources,

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competencies, communications and information management).

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fo
Note that the actions to address risks and opportunities in the AMS (6.1), along with
g
the requirements emerging from the SAMP (including AM objectives), the AM Plans
tin
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and continual improvement actions all contribute to the planning process for
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developing, acquiring or improving the Support elements (section 7).

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In turn, the support elements facilitate (‘enable’) development of AM plans,

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implementation of these plans. However they also (not shown on diagram) enable
alignment of all AMS elements (especially awareness, communications and
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information) sustainability of the AMS and processes of continual improvement.

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Presentation Slides
5 Leadership
A. ‘Top Management’ Commitments
B. Roles, responsibilities and authorities
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A. In the context of Theme 4 – Enablers, Top Management commitment (5.1) is one of the
20
most important requirements.
1:
00
Evidence should be sought that top management enables (provides or commits to the 55
provision of) adequate communication, resources, clarity of roles, cross-functional
O
collaboration and other supportive elements are provided.

IS
S
It is common to find a mismatch between the stated objectives or priorities (e.g. approach
rB
to costs and risks), and the actual operational activities or resources provided. Look
fo
for evidence of the leaders ‘walking the talk’.

g
tin
di
In contrast, look for warning signs that top management have conflicting agendas (e.g.
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short-termism, despite endorsing whole life cycle value realization) or behaviours that
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undermine stated principles (e.g. consultation and cross-functional working).

to
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B. Clear roles, responsibilities and decision-making authorities are also essential Enablers.
Separate responsibilities for asset management activities are inevitable, but auditors should
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look for evidence that cross-functional collaboration contributes to development of the

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strategic plan (SAMP), AM objectives and AM plans.
• No specific requirement these points to be documented but the organization should

be strongly challenged if roles and responsibilities documentation is not made available
(e.g. organization charts, job descriptions, RACI diagrams). Whilst they may be included in
personal objectives these may not be generally visible or communicated within the business
Presentation Slides
Exercise 13
• Theme 4 – Enablers: Delegation of

Responsibility and Authority
5 minutes
Click here
to start
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Activity 5: Theme 4 – Enablers: Delegation of Responsibility and Authority
20
1:
Purpose:
00
Identify how appropriately top management has delegated responsibilities and authorities.
55
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Duration:
IS
5 minutes working individually

S
10 minutes feedback
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fo
Directions:
g
tin
Working individually, identify what evidence there should be within an organization that top
di
management has appropriately delegated responsibilities and authorities for asset

Au
management decisions and activities.

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to
Make sure you consider different types of decision-making, levels of planning and different
di
types of asset life cycle activity – and for different organization scales (e.g. scope of asset
Au
portfolio) and geographical spread.

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Presentation Slides
• 7.1 Resources
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The next key ‘enabler is the resource needed to perform all AM activities and the
20
establishment, implementation, maintenance and continual improvement of the AM system.
1:
00
When auditing the availability of appropriate resources, you should consider: 55
• Human and non-human resources (e.g. physical equipment, finance, information)
O
• Internal and external resources (i.e. including supply chain dependencies and
IS
outsourcing)
S
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The organization should be able to demonstrate:

fo
g
tin
• Evidence of matching the resources to the plan (sufficient to provide confidence of

di
ability to deliver the AM objectives)

Au
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• HR functions are geared to anticipate and fulfil these resources in a sustained manner
to
(recruitment, professional development, projections of leavers/retirement)

di
Au
• Procurement functions have adequate market and supply chain relationships,

ad
particularly for critical items such as spare parts, or specialist skills. A proactive, risk-
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based approach should be evident in the management of such dependencies (e.g. what
spares to hold)
• How lead-times (e.g. procurement, recruitment or training), resource inadequacies

(volume or quality) and work backlogs are actively monitored and used to adjust
resourcing decisions
It is not a specific requirement for these to be documented but the organization

should be strongly challenged if such documentation is not made available as documentation
is implied and fundamental to the delivery of the objectives.
Presentation Slides
• 7.2 Competence
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Competency is another essential ‘enabler’. 7.2 requires the organization to determine competence
20
requirements for all asset management roles. This should be evidenced in job specifications,
1:
recruitment processes, training records and outsourcing arrangements.
00
55
The organization should map current competencies against the role requirements and determine
any gaps. These gaps should be used for:
O
IS
• Training and development of existing staff

• Mentoring
S
rB
• Succession planning
• Training records and monitoring
fo
• Evaluation of training received

g
tin
di
Most organizations will have such arrangements for technical and functional competencies.
Au
However they may not include asset management-specific competencies. For example,
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good asset management requires personnel (in-house or outsourced) involved in delivery of AM

to
activities to be competent to perform the tasks but also to understand why the task is
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necessary/important (7.3). Similarly, leadership competencies must include communicating,

Au
directing and supporting elements (5.1).

ad
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Other common areas of weakness in this respect are:

• Business skills and understanding in technical staff
• Communications skills in technical staff
• Root cause analysis skills
The organization should also be considering future competency requirements (including the
impact of new technologies) due to the lead-time for developing or acquiring relevant
competencies.
Particularly in the case of outsourced activities, the monitoring of competencies should include
reviews of the impact of personnel changes.
There is a clear requirement for appropriate documents to be retained as evidence of

competence. This also applies to the use of contractors (outsourcing).
Presentation Slides
Enabling Objectives
Theme 4 – Enablers
Awareness, Communication & Information
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This section deals with the Awareness, Communication and Information elements of Theme 4
20
Enablers.
1:
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Presentation Slides
Awareness, Communication,
Information and Documented Information
• 7.3 Awareness
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ISO 55001 requires that ‘persons working under the control of the organization, who can have
20
an impact on the achievement of objectives, shall be made aware of AM policy and their role
1:
in contributing to the effectiveness of the AMS and the implications of non-conformance’.
00
This basically says that all staff must be aware of: 55
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• The AM Policy
IS
• How their roles contribute to the AMS, and the benefits that result
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• What they are responsible for (the work and associated risks/opportunities)
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• The inter-relationships between this work and other activities

fo
• What happens if the AMS requirements are not met

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tin
di
Auditors should check (on a sampling basis) that persons working under the control of the
Au
organization (in-house and outsourced service providers) are aware of all the areas specified
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above.
to
di
How this awareness is achieved is for the organization to determine (for example;
Au
newsletters, staff briefings, ‘toolbox talks’ etc.). Good practice would be to have records of the
ad
information disseminated to appropriate persons, with verification of the effectiveness of this

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communication (level of resulting awareness).
It is not a specific requirement for arrangements for ‘awareness’ to be

documented but the organization should be challenged if such documentation is not made
available to ensure that such awareness communication has been undertaken in line with the
requirements of the standard in a consistent way and to include all relevant persons.
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Presentation Slides
Awareness, Communication, Information and

Documented Information
• 7.4 Communication
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The communication requirement is that ‘the organization shall determine the need for
20
internal and external communications relevant to assets, asset management and the
1:
asset management system’. The organization is also required to determine what, when, to
00
whom and how such communications will be undertaken. 55
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Certain key communication elements should be audited for relevance and adequacy:
IS
• External stakeholders: understanding their expectations (4.2) and providing relevant

S
planning and performance information in a timely manner

rB
• Leadership: communicating Purpose (Theme 1), ensuring Alignment (Theme 2) and

fo
facilitating Continual Improvement (Theme 3)

g
tin
• Cross-functional collaboration: information sharing and transfers between groups

di
responsible for different life cycle activities (e.g. asset suppliers, procurers,
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developers/constructors, commissioners, operators and maintainers)

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• Information technology support of communications: effectiveness and appropriate

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usage (e.g. email)

di
• Vertical and horizontal communications: to reduce distortions of messages and

Au
blockages
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• Informal communications methods and networking

Le
Good practice would be to document communication arrangements and keep records of

communications undertaken (information content, audience, intended outcome, verification of
understanding etc.). Communications often need to be 2-way, so verification of
understanding is needed, and feedback mechanisms should be checked.
It is not a specific requirement for ‘communication’ to be documented but the

organization should be challenged if such documentation is not made available to ensure that
communication is undertaken in a effective way and includes all appropriate stakeholders.
Presentation Slides
Awareness, Communication,
Information and Documented Information
• 7.5 Information
• 7.6 Documented Information
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These ‘enabler’ requirements relate to information needed support its “assets, asset
20
management and asset management system and the achievement of the organizational
1:
objectives”. In practice, this means mostly the asset management (i.e. processes and
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activities) and management system requirements. Nevertheless, the requirement also55
applies to the cases where assets themselves require information for their correct function –
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The organization needs to determine the data attributes (‘meta data’), quality
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requirements and timely provision in relation to the information usage: this should also
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The organization is required to have documented processes for managing the information
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(which is, itself, an ‘asset’), for aligning terminology, and for appropriate documentation
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(7.6).
Auditors should check (on a sample basis) that up-to-date information exists in line with the
documented requirements, particularly in relation to its completeness, quality and how the
information is used.
There is a requirement for the information requirements to be documented as part

of documented information.
Presentation Slides
If information is held in multiple places (for example in departmental databases, spreadsheets

and other documents), how is it shared and reconciled? Asset management is best enabled
with a ‘single source of truth’ and good communications. Auditors should challenge any
evidence that information within functional ‘silos’ is adequately available to other functions
that might benefit from having access to it.
Relevant data and information management processes should normally be supported by

usage of an Enterprise Asset Management (EAM) or other software systems (for example;
asset register, work management, risk management and document management systems).
These systems have very varied histories of implementation success: auditors should verify
that the systems are used, used appropriately, and that the necessary processes are in place
to ensure that data and information contained within them is fit for purpose.
And there is also a risk of staff becoming purely reactive to the information demands of such
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Updates: notification of new and updated information and documents may be communicated
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by different means. However, checks should be made to ensure the appropriate persons are
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notified when new or revised information and documents become available.
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Exercise 14
• Theme 4 – Enablers:
Information Systems
10 minutes
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to start
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Activity 6: Theme 4 – Enablers: Information Systems
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Directions:
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How would an auditor assess that data and information recorded about a type of asset was
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appropriate?
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An oil sample is collected and tested by a maintenance fitter during routine maintenance of an
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oil circuit breaker, where the oil is routinely changed.

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Enabling Objectives
AMS integration and AM Maturity
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We have now considered all 4 themes that enable an auditor to check compliance with ISO
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55001 requirements.
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However there is a final stage to the audit – the consideration of the overall fitness-for-
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purpose of the AMS and it’s elements in total combination. This is particularly important in
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the case of an asset management system, since the effectiveness of the AMS is so dependent
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upon the linkages and alignments of the different elements. We will now look at the total
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picture, therefore, in terms of the Plan, Do, Check, Act integration, and in the overall maturity
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10 Improvement
 Nonconformity and corrective 4 Context of the organization
action  Understanding the organization and its context
 Preventive action  Understanding the needs and expectations of the
 Continual10 Improvement
improvement stakeholders
 4 Context ofthe
Determining the organization
scope of the AM System
Act
Plan
7 Support
9 Performance Evaluation  Resources 55 Leadership
Leadership
 Monitoring, measurement,  Competence  Leadership and commitment
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analysis and evaluation  Awareness  Policy
 7
Communications
 9 Performance
Internal audit  organizational role, responsibilities
 Support
Information
 evaluation
Management review and authorities
requirements
 Documented
information
Check 66Planning
Planning
 Objectives
8 Operation 8 Operation  Planning to achieve AM objectives
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 Outsourcing
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As revisited at the start of this course, the ISO 55001 requirements follow the Annex SL
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structure, and this also maps onto the Plan, Do, Check, Act (‘Deming’) cycle. The expanded
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detail of requirements in sections 4 & 5 demonstrate the importance of the Purpose theme
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is that of the section 7 Enablers that provide Support to all the other elements.
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asset management system include the:

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• Whole asset life cycle planning (including management of risks & opportunities,
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performance monitoring and cross-functional collaboration)

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• Clear decision-making criteria (e.g. cost/risk/performance optimization)

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The combined effect of good asset management practices has been turned into a maturity
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scale by the Institute of Asset Management – we will next consider how ISO 55001
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certification fits into this scale.

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IAM/TWPL maturity ‘bow-tie’
Convergence to a joined-up, managed Divergence ‘best appropriate

system for asset management practices’ (context-dependent)
Putting the Development Optimization and

basics in place & Integration Innovation
Competent Asset Management

(to independently certifiable standard)
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The Institute of Asset Management (IAM) has been developing a maturity scale and
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assessment methodology (SAM) for the ISO 55001 elements. The new model contributed by
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The Woodhouse Partnership Ltd (TWPL) in the UK, takes the form of a ‘bow-tie’ rather than
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the more conventional linear scale of ‘innocence to excellence’. 55
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This maturity scale ranges from isolated, chaotic activities (left-hand extreme) that need to be
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better integrated and aligned. This is a convergent stage, culminating in a recognisably

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joined-up management system for asset management and recognised as a distinctive feature
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of “competent asset management” (the knot in the bow-tie).

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Thereafter, however, the higher levels of maturity and sophistication that are worthwhile for
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the organization are highly dependent upon the context of the organization. This is why the
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model shows divergence – because different aspects of asset management will have
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differential significance and represent different opportunities for realizing additional value.
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Using the bow-tie

0 1 2 3 4 5
Developing Optimizing
Roadmap
1.Understand the context
Initial ISO55001 2.Identify relevant leading practices
systematic Certification 3. Challenge, innovate, & stretch limits
4.Roadmap & implement
review 5.Review & repeat
(“gap analysis”)
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ISO 55001 certification aligns with level 3 of the maturity scale.
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improvement. 55
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innovation, further integration and optimization will vary across different asset management
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activities and elements of the management system. Leading edge or world-class processes
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that are necessary and worthwhile in one industry sector, or in one area of activity, may be
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very inappropriate for others. And in some cases, level 3 ‘competent’ capabilities will be
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appropriate for good governance and value realization – there is not organizational benefit to
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be obtained from doing more.

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The factors that determine the upper levels of appropriate maturity (e.g. definition of
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‘Excellence’ to which an organization should aspire) have been found to be determined

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principally by three ‘context’ attributes:

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• Scope and complexity of the asset portfolio: the AMS and degree of integration and
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optimization must be appropriate to the volume, diversity, interconnectedness and

geographical dispersion of the assets.
• Asset systems criticality: the consequences of functional failure strongly influence the
level of governance that is worthwhile, the sophistication of necessary risk management,
and methods and levels of optimization that are appropriate.
• Business sector volatility: the agility of decision-making, the asset life cycles and
planning horizons, the change management and supply chain (e.g. outsourcing)
arrangements are strongly affected by the stability or volatility of the organization’s
Presentation Slides
customer demand, commercial, regulatory, supply chain and technology environments.

For example, manufacturers of mobile phones have very different dependencies (and
performance opportunities) in such elements of their AMS compared to utility infrastructure
owner/operators.
The ‘frontier’ of level 5 maturity is also constantly moving as innovations and expectations
rise, so the definition of ‘Excellent’ is a moving target. The IAM/TWPL model therefore
incorporates iterative updating of the target, across 39 subject areas of the asset
management ‘Landscape’ as defined in the Global Forum of Maintenance & Asset
Management (GFMAM).
The IAM is also currently developing guidance and a tool for self-assessment against this
maturity scale – and auditors can expect to see self-assessments using the IAM’s Strategic
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Assessment Model (SAM) in the course of their work.
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Enabling Objectives
Audit planning & execution
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The final task of the course is the planning and execution of an ISO 55001 audit, and the
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interpretation of the evidence obtained.
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This we will do through a case study.
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Relationship with other management systems
OHSAS 18001
Health & Safety
Management
(ISO 45001)
ISO 31000
Risk Management
guidelines ISO 55001
Asset
Management
ISO 14001
Environmental ISO 9001
Management Quality Management
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The ISO 55001 audit should make maximum usage of pre-existing audits and
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certifications of related management systems within the organization. So it is
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important to check which exist, how recently they have been certified and their degree of
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integration. This will have a significant impact on the resource planning for the ISO 55001
55
audit.
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ISO 55001 Requirements for Documentary Evidence
4.1 4.2 4.3

Understanding the Understanding the needs and Scope of the asset
organization and its context expectations of stakeholders management system
4.4 & 6.2.1 5.2

Asset management Asset Management
objectives & SAMP Policy
6.2.2 6.1
Asset Management Actions to address risks 8.3 7.2
Plans and opportunities
Outsourcing Competence
7.6.1 & 7.6.3

8.1 8.2 Documented
Operational planning Management of Information
9.1 and control Change
Monitoring,
measurement, analysis 9.3
and evaluation 9.2.2
Internal audit
Management 7.5
review Information
requirements
10.1 10.2
Nonconformity and
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Preventive action
corrective action
Direct requirement
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Indirect requirement
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Documentation preparedness. Although documentation is only one part of verifying the
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existence and appropriateness of asset management processes and AMS requirement
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compliance, it is a good preparatory aid to both planning the audit and to understanding the
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local context, terminology and business processes of the organization. 55
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This picture and the specific checklist on page 12 can help to identify explicit documentation
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that should be available but remember also the 7.6.1 and 8.1 requirements for appropriate
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other documentation to exist and be available.

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AMS themes Stakeholder and organisational

context
stakeholder
and organisational
objectives
policy
objectives
Strategic asset
management plan
Asset management
system
plans systems and
relevant support
control
7.1 Resources
7.2 Competence

9.2 Internal audit
10 Improvement
Source:
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ISO 55002
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When planning the audit, the 4 Themes help to ensure review of related elements in groups
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that reflect their combined role or essential interdependencies. As a reminder, these themes
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are:
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1. Purpose: understanding context, scope and organizational strategic objectives (defines
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values and direction for asset management)

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2. Alignment: traceable ‘line-of-sight’ connectivity between the strategic objectives, asset

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management plans and day-to-day work activities (ensures single-minded, collaborative

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delivery)
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3. Continual improvement: not just in good intentions and process capability, but in
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demonstrated normal practice (asset management needs to be dynamic and adaptive)

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4. Asset management enablers: the generic elements that facilitate integration, co-
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Activity 15
• Auditing ‘Scenarios’ -- Discussion
45 minutes
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to start
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Activity 7: Auditing ‘Scenarios’
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Duration:
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20 minutes working in pairs for scenario preparation

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60 minutes to present scenario(s) and whole class to assess

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Directions: (Part A)
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The tutor will provide each pair with a clause(s) from ISO 55001, worthy of specific focus
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from the list below.

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You should choose and describe a scenario that is subject to the given requirements clause(s)
but has a major, minor or OFI (your tutor will specify which).
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Describe your scenario, in note form, on a flipchart for the rest of the class to assess. Do not
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record your own findings on the flipchart! Please ensure you record sufficient objective
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evidence for an evaluation to take place and ensure you focus on AMS considerations and
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not just High Level Structure (HLS) or generic criteria.
Topics and ISO 55001 clauses of particular focus for this activity:
(1) Scope of the AMS: Clause 4.3
(2) Leadership: Clause 5
(3) Strategic Asset Management Plan (SAMP): Clauses 4.1 & 6.2.2
(4) Risk management: Clauses 6.1 & 8.1
(5) Outsourcing: Clause 8.3
Presentation Slides
18/02/2022
Asset Management Verification Scheme -Process
• The process used will follow that established for Carbon verification which has
been designed to comply with accreditation requirements (Note This is an unaccredited Certificate)
• The Process involves the following
• Determination of Assurance level
• Materiality level
• Risk Assessment during the Contract review (Two stage process)
• Verification Planning
• Pre-Assessment / Gap Analysis (optional)
• Strategic Analysis:
• Risk Assessment
• Verification Plan
• Verification of Assertion
• Verification Reporting
• Technical Review (certification decision)
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A scenario example for clause 7.3 might be:

“Interviews with representative staff who can have an impact on the achievement of asset
management objectives, reveals that 1 out of 5 interviewees was not aware of the risks and
Your own anticipated finding might be: “Minor non-conformity: Clause 7.3 Awareness” – but
do not include this on the flipchart
Directions: (Part B)
Having considered the specific requirements of your given clause(s), now also consider the
consistencies and interrelationships you would expect across other areas of the
requirements. Consider the 4 themes in identifying important links and dependencies and
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record your assessment of the scenario with respect to these interrelationships.
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For the scenario example for clause 7.3:
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“Interviews with representative staff who can have an impact on the achievement of asset
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management objectives, reveals that 1 out of 5 interviewees was not aware of the risks and
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Necessary conformance linkages for this awareness Enabler (Theme 4) would include: 8.1
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requirements, 6.1 (if the interviewees are involved in planning activities) and 8.3 (if
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interviewees are involved in outsourcing or are, themselves, service providers).

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Do not add these linkages to your flipchart (you will share them after discussing the
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scenario with the class).

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Directions: (Part C)
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C.1 The tutor will now invite each pair to present their scenario to the class, and ask the
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whole class for their assessment of the objective evidence provided.

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Please record the class assessment on the flipchart.

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C.2 The pair will then share their own findings and also their observations about required
conformance linkages.
The tutor will facilitate the discussions and co-ordinate the conclusions/learning.
Presentation Slides
Course Content

Day 5 Examination
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Audit meetings
• End-of day meetings
• Progress meetings
• Team meetings
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Auditors should be focused on the intended result of the management system throughout the
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audit process. While processes and what they achieve are important, the result of the
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management system and its performance are what counts.
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It may be helpful to the auditee, and management, to provide a summary of the days
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auditing progress – in particular progress against the audit plan, positives encountered,
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areas of non-conformance encountered, and anything that is/could affect the audit objective,
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or the plan the next day.

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Before the closing meeting, but immediately after the actual auditing process is
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completed, an audit team meeting should be held so that the team leader can plan the closing
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meeting in detail, and ensure the team knows what is going to be presented to the
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organization in the way of conformance, nonconformities and conclusion. The team meeting
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needs to be at least an hour before the closing meeting, less if some of the work has already
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been done the night before, for example.

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Some auditors try to ‘squeeze in’ a bit more auditing at this point. The law of diminishing
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returns operates, and very little will be gained by trying to rush through some more auditing.
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The team leader chairs the audit team meeting and only the audit team is present. The team
completes any nonconformity reports and reviews all findings. The team leader prepares the
audit report and final conclusions.
There is no set rule about who presents the information. The team leader may present
everything – all nonconformities and the report – or the team members may be asked to
present the nonconformities they have found. The review of nonconformities is
important, and members should be rigorous in their review of one another's statements. Are
all the facts there? Is it clear that it is a nonconformity? Can it be read easily? Is it
grammatically correct?
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As a result of the ‘review team’ findings the team leader prepares an audit report. This
report reflects the degree to which an organization is complying with its own QMS and the
relevant audit criteria.
As a suggestion, a team leader could do worse than answer three questions asked about the
system in any audit:
• Is there a system intending to address all the clauses of the relevant standard? To what
extent? (audit of intent)
• Has this system been put into practice? To what extent? (audit of implementation)
• Is the system achieving its intent/objectives? To what extent? (audit of effectiveness).
To answer these questions, the nonconformities raised will give some guide.
Further questions may be answered by the report:
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• Do the nonconformities raised indicate weakness in any particular area(s) of the
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organization?
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• Do the nonconformities raised indicate weaknesses in any particular sections of the
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management system?
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Please note: The content of audit conclusions should also address issues such as the
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identification of risks and the effectiveness of actions taken by the auditee to address risks
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and consider the level of the integration of different management systems and their intended
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results. The absence of a process or documentation can be important in a high risk, or

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The team leader will also prepare an agenda for the closing meeting and arranges, either
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through a team member or a guide, for copies of each nonconformity to be passed over to
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the organization's management at the appropriate time. It is ideal, but by no means possible
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on every audit, for the team leader to organize the seating arrangements for the closing
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meeting. This is not for any underhand reason, but they should try to ensure that the
arrangements suit the purpose, and, that no one is in an awkward position. Often, the closing
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Nonconformity
• Non-fulfilment of a requirement
• Specified requirements
• Conditions of contract
• Quality standard
• Requirements of QMS (both documented and undocumented
• Legal regulatory requirements
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Legal requirements, for instance auditors with specialist knowledge can

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engineering.
The audit must always be carried out to documented, agreed and
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Nonconformity
1. Documentation is not conforming with the standard

(intent)
2. Practice is not in line with the intent
(implementation)
3. Practice is not effective
(effectiveness)
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auditee time to address any weaknesses in the quality manual before

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The implementation audit is carried out by auditors interviewing

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employees who work to the system.

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Establish the Facts
• Get help from the auditee

• Discuss concerns
• Verify the information
• Record all the evidence
• Exact observation
• Where, what, etc...
• Establish why a nonconformity or otherwise
• State who (if relevant) – preferably by job title
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request their help to gain a better understanding.

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Verify with auditee the findings.

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Record in the notes all the relevant information.

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Remember, it is an audit of the quality management system, not of the

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people working to it. Only use names when it is clear that personal
criticism is not implied.
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Writing Statements of Nonconformity
• Use auditee’s terminology

• Make it retrievable
• Must be factual
• Make it complete
• Make it concise
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Without traceability to the actual evidence of a nonconformity the

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auditee will find it difficult (or impossible) to instigate the effective

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corrective action.
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3rd party auditors are restricted as to the advice they can give. A
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similar policy might prevail in some 2nd party audits. By making the
nonconformity clear, correct, complete and concise the auditors
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will be helping the auditee in determining the most effective corrective

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action.
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Do not make nonconformity reports concise at the expense of

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clarity, correctness or completeness.

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Presentation Slides
Consider the Seriousness
Three questions to be answered

1. What could go wrong if the nonconformity remains
uncorrected?
2. What is the likelihood of such a thing going wrong?
3. How likely is it to be detected if it did go wrong?
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The frequency of the nonconformity is often not enough to evaluate its
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significance.
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Enlist the auditee’s help in answering these two questions.

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When specialist knowledge by the auditor is necessary then this can

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help the evaluation of nonconformities, but the auditee’s help should

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also be enlisted.
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A nonconformity with moderate consequences but high probability

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could be a major.
A nonconformity with serious consequences but with negligible
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probability could only be a minor.

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Presentation Slides
Nonconformity
A single identified lapse, which would not in itself

either lead to nonconforming products or services
being delivered, or (for EMS & OHS) raise
significant doubt as to the capability of the
management system to achieve the policy and
objectives of the organization.
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Definitions of minor nonconformity might vary from one registration
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body to another. It is a good idea to communicate to the auditee, in

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advance of the audit, the criteria.

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It might be added that BSI have only two classifications of

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nonconformity:
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a) Nonconformity (NOT minor nonconformity).

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b) Major nonconformity – see next slide.

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Presentation Slides
Major Nonconformity
A breakdown in the management system to effectively

control the processes for which it was intended, or a
situation where nonconforming product or service would
be delivered, or for (EMS and OHS), a situation which
would, on the basis of objective evidence, raise significant
doubt as to the capability of the management system to
achieve the policy and objectives of the organization.
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As with the definition of a minor nonconformity, there are variations;
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this is the definition to which BSI operates.

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Presentation Slides
Nonconformity Statement (1)
A project file was not available during the Audit.
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Presentation Slides
Nonconformity Statement (1)
Operational procedure OP-01 Rev 3 requires that all

project files are available in the general office.
Project file WP-08 was unavailable during the

Internal Audit carried out on 1/12/2004.
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Presentation Slides
Incident
During an audit of the personnel department the

auditor asks how the effectiveness of training is
monitored. The personnel manager replies that
only world-class training organizations are used by
the company so monitoring of effectiveness is not
required.
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Presentation Slides
Nonconformity
ISO 55001:2014 clause 7.2 requires that training

is evaluated for effectiveness.
The personnel manager stated that monitoring of

training effectiveness is not necessary.
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Presentation Slides
NONCONFORMITY REPORT AUDIT No. 7978

COMPANY UNDER AUDIT: SUDDON COMPONENTS NCR No. 001
ISO 55001 clause 7.5e
AREA UNDER REVIEW: MACHINE SHOP No 2
CATEGORY MAJOR / MINOR
DEFICIENCY
Calibration process flow chart cal 2 box3 shows only company instruments to be used.
Machine operator on line 15, machine No.106 was using own micrometer to measure part No.
954878/1 and to complete appropriate SPC chart. This micrometer was not in the calibration
system.
Personally owned equipment was being used due to failure of company equipment.
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Auditor’s signature Manager’s signature
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Date
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This slide can be shown after the previous slide, or at the discretion of
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the tutor after the extra sample NCR’s.

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This slide is included to show a sample completed NCR.

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Presentation Slides
Exercise 16 – Audit Scenarios
Review the 4 incidents carefully and for the first 3 answer the following
questions given
• What is the potential nonconformity implied in the incident?
• What is the potential impact of the incident for the auditee
organization?
• Do you have sufficient evidence to raise a nonconformity at this
stage?
• What further evidence would you need in order to establish the full
extent and significance of the incident?
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The 4th incident contains 1 nonconformity which you should write up
using the blank nonconformity form in the specimen exam paper.
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Presentation Slides
Keep the Auditee Informed
For the audit to be constructive, helpful and

professional
• Review audit progress and findings regularly
• Beat the grapevine or rumour mill
• Generate rapport
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Auditing must be an open book activity.
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When nonconformities are encountered, they must be discussed with

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the auditee. After confirmation the auditee will receive factual

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information.
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Openness breeds comfort on the part of the auditee. They will see
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that the auditor is a professional performing an activity designed to

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help them.
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Openness also ensures constructiveness and objectivity.

Remember that during a 3rd party audit many employees (and the
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management) will be in a stressed state and rumours could abound if

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Presentation Slides
Ethos of Auditing
• Positive approach
• Aim to help improve system
• Don’t look for blame
• Aid identification of solutions
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Auditing must be seen to be positive and not a process that looks for
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blame.
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The positive approach will identify by default weaknesses in the system

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which management can act upon to improve the system, thereby the
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overall performance of the company.

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Although 1st party, and in some instances 2nd party, auditors can
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suggest possible solutions a 3rd party auditor can only assist the
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auditee in identifying solutions.

All auditors should be as helpful as their remit allows.
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Presentation Slides
Judgement in the Audit Process
The auditee must be given the benefit of any doubt.
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Audit findings, both positive and negative, must be based on objective
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evidence.
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If the findings are inconclusive then no nonconformity can be reported.

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If there is doubt about whether a nonconformity is minor or major then

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a minor nonconformity must be the result.

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Presentation Slides
Auditee Reactions
• Enlisting help
• Continual challenge
• Volunteered information
• Diversionary or time wasting tactics
• Internal conflicts
• Authority
• Antagonism
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Some ‘quality managers’ experience difficulties in getting some aspects
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of their quality system improved and try to enlist the help of the
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auditor to achieve that. Often this is done by ‘volunteering’ information

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– such motives should be treated with scepticism.

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Some auditees might continually challenge the auditor’s findings.

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Others might resort to time wasting or diversionary tactics. Still others

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might resort to challenging the authority of the auditor and in rare

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instances try to antagonize the auditor.

The auditor’s authority is vested in the contract that the auditee’s
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management have entered into with the auditee’s organization.

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All other tactics must be dealt with calmly, firmly but politely.
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As organizations become more aware such tactics are becoming rare.

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Presentation Slides
Review Meeting
The review meeting, normally 15 to 20

minutes in duration, may be carried out at
the end of each auditing day or at the
beginning of next auditing day, with either
the management representative or guides to
• Review any nonconformities
• Resolve any problems
• Report audit progress
• Clarify any misunderstandings
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• Obtain signatures to any nonconformities
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At the review meeting findings are discussed for the second time with
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the auditee. The first time being when the nonconformity was
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discovered (and verified).

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Depending on the auditee’s approach, nonconformities can be signed

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by the auditee and, where applicable, any corrective action

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implemented, discussed and recorded.

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If corrective action has been taken during the audit the nonconformity
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still stands, as it existed at the time of observation.

Care should be taken by the auditor in respect of corrective actions
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implemented during the audit. All corrective actions must be effective,

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therefore it is probable that only minor nonconformities can be

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addressed in this manner.

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This concludes the tutorials for module 14 and day 3.

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The specimen exam paper to be discussed here, followed by the

introduction of the supervised evening work – case study as per
delegates’ exercise book page 28.
Presentation Slides
Lead Auditors Responsibilities
• Plan the audit and make effective use of resources

• Represent the audit team in communications with the
auditee
• Organize and direct audit team members
• Provide direction and guidance to auditors-in-training
• Lead the audit team to reach the audit conclusions
• Prevent and resolve conflicts
• Prepare and complete the audit report
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This and the next slide are to show the difference in responsibility
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between a Lead Auditor and an Auditor.

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Presentation Slides
Auditor Duties
• Support the team leader

• Prepare checklist
• Arrive on time
• Participate at opening meeting
• Carry out assigned tasks
• Keep to the timetable
• Document all findings
• Keep auditee informed
• Assist team leader with reports
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• Safeguard all documents
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• Maintain confidentiality
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The above information is from ISO 19011.
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Presentation Slides
Audit Team Meetings
• Item on the audit programme

• Audit team only present
• Controlled by team leader
• Plan for closing meeting
• Team leader prepares audit report
• Finalize overall judgement on system
• Team completes nonconformity reports
• Team reviews nonconformity reports
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The meeting must be an item on the programme discussed at the
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opening meeting.
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At this meeting the audit report which will be presented to the auditee
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at the closing meeting is prepared by the team leader.

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The team members will complete any outstanding nonconformity

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reports and perhaps critique all the reports in readiness for the final
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presentation to the auditee.

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The team leader will plan for the closing meeting by preparing an
agenda (for audit team use only) and establishing the general strategy,
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i.e. who and when team members should speak.

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The duration of the meeting will be dependent upon the amount of

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detail to be finalized.
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Presentation Slides
Overall Judgement on System
Conclusions to be drawn from all positive and

negative findings
• Nonconformities
• System intent
• System implementation
• System effectiveness
• Strengths and weaknesses of departments
• Strengths and weaknesses of the quality system
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As the audit progresses the auditors should correlate their findings for
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input into the assessment of the system effectiveness.

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An analysis of the findings can be made taking into account the

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significance, nature and the commonality of the nonconformities, which

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clauses of the standard were most often violated,and in which areas

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the greatest weaknesses were identified.

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A matrix of the nonconformities and the areas in which they were

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identified is a useful and powerful tool for the assessment of system

effectiveness.
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Remember, not only negative findings are to be taken into account,

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POSITIVE findings must also be considered.

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Presentation Slides
Audit Follow-up Options
• Evaluation of submitted corrective actions

• Evaluation by continuing assessment visit
• Partial re-audit
• Full re-audit
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At the end of the closing meeting when the recommendation is made
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to the auditee the follow-up actions will also be made known.

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When corrective actions relate to only minor nonconformities, and

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perhaps need only amendments to procedures, the corrective action

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can be evaluated without the need for a re-visit by the auditor.

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Other corrective actions relating to minor nonconformities can be

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verified at the first continuous assessment audit.

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If a large number of minor nonconformities, or perhaps when a single

major nonconformity has been identified, a partial re-assessment might
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be appropriate. The partial re-assessment will focus only on the

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reported nonconformities.
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Where a large number of connected minor nonconformities or perhaps

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more than one major nonconformity has been identified, then a full re-
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assessment might be the only option available.

There is no ‘magic’ number of nonconformities or formula used to
decide on the options available. Each case will be decided on its own
merits.
Presentation Slides
Audit Report
• Audit reference • Nonconformity reports

• Auditee details • Recommendation
• Objective, scope, • Approval
criteria • Circulation
• Auditors’ names • Ensure confidentiality
• Names of auditee’s of report
principals
• Audit programme
• Summary of findings
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(positive & negative)
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The audit report file will contain all the above. It will be a record and
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therefore shall be indexed to facilitate filing and retrieval.

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The method of providing a copy of the report will depend on the policy
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of the auditing organization.

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After the audit the report needs to be approved, normally by the

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management of the auditing organization.

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The audit report file is confidential.

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Presentation Slides
Closing Meeting
Team Leader prepares and works to an agenda

and controls the meeting.
1 Attendees 6 Summary of findings

2 Thanks 7 Agreement
3 Objective/scope 8 Recommendation
4 Reporting system 9 Clarification
5 Limitations 10 Depart
-ID
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No. 7 Agreement – this is obtaining the management signature for the
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nonconformance reports raised.

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Exercise 16 can be carried out at the appropriate time against this

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slide.
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TUTORS MUST ALWAYS COVER THE SCENARIO OF NO SENIOR

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MANAGERS BEING AVAILABLE FOR THE CLOSING MEETING.

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Presentation Slides
Follow-up Action
• Auditee receives nonconformity report

• Corrective action plan prepared
• Submit plan (where appropriate) to auditor
• Auditor evaluates response
• Auditee implements plan
• Auditee evaluates effectiveness
• Auditee revises plan if necessary
• Auditee documents the changes
• Auditor verifies implementation and effectiveness
-ID
• Records made of all actions taken (by auditor and auditee)
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It is the responsibility of the auditee to prepare a corrective action plan
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detailing the proposed corrective actions and the time scale for their
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implementation.
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It would not be necessary to submit a plan to the registration body if

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there was no recommendation made.

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If, after internal auditing, the corrective action is found to be not

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effective then the corrective plan must be revised, and the new
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corrective action re-audited by the auditee.

Records of corrective actions taken must be maintained, and affected
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documentation amended as appropriate.

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Presentation Slides
Exercise 17 – Closing Meeting
In teams, using nonconformities from the case

study, prepare to carry out a closing meeting.
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Presentation Slides
Exercise 17 – Audit Report
Evening Work
• Scope and objective
• Total number of nonconformities
• Number of MAJOR nonconformities
• Depts with MAJOR nonconformities
• Depts with NO nonconformities
• Greatest failure – clause
• Assessment of intent
• Assessment of implementation
• Assessment of effectiveness
-ID
• Recommendation
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Please place your name on the top of the page and sign the end of the
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Exercise 8 to be explained using above slide. Because of the change in
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the course hours the tutor must be present for 1 hour while delegates
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collect information on this exercise from the case study.

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A question and answer session can be added here.

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End of Day 4.
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Presentation Slides
Auditing to Root Cause Findings

A well written finding always tries to describe the ‘root cause’
behind the mere ‘symptoms’.
Why? Why? Why? Why?
Cause Cause Cause Root

Symptom
1 2 3 cause
6 instruments No Calibration No New

are found to calibration Engineer procedures equipment
have not been status not aware for that had not
calibrated; identified that they calibrating been included
Quality Manual on the had to be the on the
requires all equipment calibrated equipment calibration
instruments system
are calibrated
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Presentation Slides
Why? Why? Why? Why?

Symptom
1 2 3 cause
Nonconforming Final Manufacturing Sales Sales clerk

product has Inspection were unaware omitted to not aware
been failed to of key pass on a it was his
dispatched discover requirements key piece of job to do
to the the fault and made the information this
customer product to from the
conform to customer
standard
specifications
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Presentation Slides
Why? Why? Why? Why?

Symptom
1 2 3 cause
Incorrect Incorrect Purchase Purchase Engineering

materials materials order requisitions specifications
from sub- are not details are quote are incorrect
contractor identified at incomplete the wrong and have not
ABC Ltd are receiving specification been updated
continually inspection
detected
during
manufacture
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Presentation Slides
Exercise 18 – Reviewing Corrective Action
For the identified nonconformities review corrective

actions proposed to see if they address the root cause
of the problem and identify appropriate actions to be
taken.
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Presentation Slides
Issues Relating to Incident No 1
1. The company is not ensuring the work environment

prevents nonconformity
2. The company could be losing money or customers may
be dissatisfied if their accounts are inaccurate, resulting
in lost business. (It affect the stakeholders).
3. Yet a selection of cheques have shown inaccuracies. Clause 6.4
4. a. Are these incoming or outgoing
b. What are the values
c. Are there any other checking methods
d. Has this been reported to the Management Rep or Top Management
e. What if any corrective action is planned
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The following are extra nonconformances that may be used at the
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tutors discretion.
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Presentation Slides
Nonconformity Statement – Incident No 1
• ISO 55001:2014 Clause 6.1

requires organisation to have
actions to address risk and
opportunities for the asset
management system.
• In the back office several cheques
were identified with inaccuracies
due to the bright sunlight reflecting
from the screens of the computer
-ID
monitors
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• N.C to ISO 55001:2014
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Clause 6.1
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Presentation Slides
Incident
During the audit trial, in maintenance department,

the auditors find that the organisation do not have
predictive maintenance plan as what is stated in the
Asset Management Plan.
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Presentation Slides
Nonconformity Statement
• ISO 55001:2014 requires operational planning and

control
• The maintenance guy claim that he is not aware
of such requirement
• Minor NC Clause 8.1
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Presentation Slides
Issue Related to Nonconformity
1) It could also be related to training not provided or lack of

monitoring of performance evaluation
2) The company may have serious downtime that lead to serious
financial loss.
3) The auditors may need to find out more on
• Do the maintenance guys had their own way of predict failure
in the machines.
• Is preventive maintenance sufficient
• What is the history of machine breakdown
• Why is this not pick up during Internal audit
-ID
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Presentation Slides
Final Questions
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Course Objectives
1:
This course aimed to provide guidance and practical experience in planning, executing, and
00
reporting Management System audits of Asset Management. 55
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The learning objectives were to enable participants to:

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Explain the principles of auditing to BS ISO 55001:2014

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•
• Introduce and apply a four theme approach to assessing the elements of BS ISO
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55001 - and their integration

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• Recognize the role of maturity models for continual improvement in asset

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• Prepare and conduct Asset Management audits

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Delegates are were taken through a structured programme that includes a balance of theory
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and practice using a combination of collaborative learning and practical activities.

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Final questions?
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Presentation Slides
Benefits of our remote audit
• Stay on schedule
• Access BSI global network of experts more easily
• Decrease carbon footprint and expenses through reduced travel
for your team and BSI
• A flexible approach – BSI align the technology that works best for
you
• Engage your teams no matter where they are based
• It’s an immersive audit experience with the same trusted BSI
expertise
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Benefits of a BSI remote audit:
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• Stay on schedule
1:
• Access BSI global network of experts more easily
• Decrease carbon footprint and expenses through reduced travel for your team and
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BSI
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• A flexible approach – BSI align the technology that works best for you
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• Engage your teams no matter where they are based

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• It’s an immersive audit experience with the same trusted expertise

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Presentation Slides
Contact Information
Address: BSI
Telephone:
Fax:
Email: <general training email>@bsigroup.com
Links: http://<local web address>
Add local/country contact information
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Delegate Workbook - ISO 55001 5 Days Course-SHS-Jun

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Delegate Workbook - ISO 55001 5 Days Course-SHS-Jun

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Key Elements of Auditing BS ISO 55001:2014

Lead Auditor/ Auditing for BS ISO 55001:2014

Breakout rooms and whiteboards available

Raise hand and chat

• This course provides key guidance and

The delegates are expected to:

Explain the purpose of:

…an audit of a AMS to establish

be swapped around, to ensure valuable existing knowledge and experience is shared

Day 1 Audit Terms and Concept

with tutorials and exercises.

Unless otherwise stated, the material presented will be based on 3rd

party auditing practices.

Emphasize the need for delegates to fully participate in all discussions

Emphasize also that this is a lead auditor course being presented by

This concludes module 1.

Day 1 Audit Terms and Concept

with tutorials and exercises.

Unless otherwise stated, the material presented will be based on 3rd

party auditing practices.

Emphasize the need for delegates to fully participate in all discussions

Emphasize also that this is a lead auditor course being presented by

This concludes module 1.

Exercise 1 – Delegates Introductions

Work in pairs and interview each other to get information in

Name – check spelling for certificate.

Company – product or service they provide.

Position in the company and experience.

ISO knowledge to help tutors in group selection

1 = Very little knowledge

7+ = Has worked in QA etc.

Hobbies as an ice breaker and to put delegates at ease.

Quality : Degree to which a set of inherent

characteristics fulfils requirements

Sejauh mana seperangkat karakteristik yang melekat memenuhi

Process : Set of interrelated or interacting

activities which transforms inputs into outputs

Serangkaian kegiatan yang saling terkait atau berinteraksi yang

mengubah input menjadi output

Set of interrelated or interacting

INPUTS ACTIVITIES OUTPUTS

Audit definition - Reminder

organization, such as customers, or by other individuals on their behalf. Third party

audits are conducted by independent auditing organizations, such as those providing

certification/registration of conformity or governmental agencies.

certification/registration organizations subject to ISO/IEC 17021-1, IAF

Communication Technology (ICT) for auditing/assessment purposes, or IAF

Events or Circumstances etc.

INPUTS AUDIT ACTIVITY OUTPUTS

• Assessment of the degree of implementation (IMPLEMENTATION)

• Assessment of the QMS effectiveness (EFFECTIVENESS)

Conformance with the minimum documented information requirements of the standard; as

processes, policies, protocols etc.

• Conformance Auditing – a test of

low level and is frequently of low value to the business as a whole.

Process Assessment is an assessment; an evaluation of the process to

deliver what is required in business terms. It will identify areas for

This change is small but fundamental to all existing auditors. Auditors

will not be limited to yes/no but will be expected to add value by