Introduction

In the business operation of a company, establish and maintaining the assets and keeping track of the assets adds value to the business functions of the company as well as saves money and time. It is the process of maximizing the number of assets of the company which they return back to the stakeholders in the best possible way. Asset recovery is also a part of asset management (Arthur et al. 2014). The ISO 55001 in this respect is an asset management framework which helps an organization to create a superior asset management system, achieve the financial goals and fulfil regulatory demands (Godau and Mary McGeoch 2016). The present report will draw a comparison between a conventional asset management system and ISO 55001 framework in an organizational context. The report will also highlight the importance of this framework and how it differs from conventional frameworks. The chosen company is Toyota Motors in this report.

Discussion

The ISO asset management framework is the international standard which facilitates the organizations to determine their capital investment, update, expand or replace their existing infrastructure, generate maintenance strategies within low budgets. It helps to associate asset management with the achievement of organizational goals (Hotti 2014). It ensures that the organization experience the optimum benefit and shape the standard upon which the organization is based. Higher customer satisfaction, health and safety requirements, life –time value of the asset are also optimized by the help of this framework. The organizational risks can be mitigated, performance levels can be heightened and bottom line can be improved by the help of this framework. The basic steps to implement ISO 55001 in an organization are context, leadership, planning, support, managing the project, performance evaluation and improvement (Yates 2015).

The Toyota company has utilized the ISO 55001 process for acquiring new asset. The life of an asset is the natural evolution of the asset, its application and value starting from the inception to retirement. The Toyota company has implemented the ISO 55001, just in 7 steps. The company has first taken care of the nature and purpose of the asset as well as their organization. They have judged its operating contexts, regulatory, financial and legal constraints. The needs and expectations of the stakeholders have also been focused fir better results. The engagement of a perfect leadership to stay committed to the asset management project have been ensured. It is highly advantageous because the Toyota company can promote this big support by displaying that the asset management project and the benefits are completely aligned with their objectives and priorities. The Toyota company has understood that certain resources are essential initially. The human resources can be arranged from the middle of the entire process but certain resources are important and therefore, they must be kept available for the external and internal services, additional information system and training.

The ISO 55001 says that adopting the standards can facilitate the possibility to achieve the objectives by efficient management of its assets. The Toyota company has aligned the asset management project with the organizational objectives. They have maintained a clear ‘line of sight’ into their management policies, strategies and objectives. They have also aligned the requirements of the asset management system with the business processes. There are so many processes such as business and financial planning, risk framework, talent and competence in strategic management, information system governance, stakeholder engagement and many others (Nowakowski, Tubis and Werbi?ska-Wojciechowska 2017). The company also has developed suitable policies for the asset management. In the entire process of acquiring new assets the roles of different individuals have been distributed. The company has kept in mind to only assign the important roles to suitable people (Parida 2016). The organizational risk framework of the Toyota company. It becomes difficult when risk framework of asset management is developed independently and later it has to align with the corporate level risk framework.

The asset management used by the Toyota Company previously was the enterprise asset management system. The company used to apply lean manufacturing principles. Such tools support to determine the downtime of the processes and managing the risk at the same time. However, the only remedy is not technology. The reliability of the critical assets need to be improved in the plant maintenance department (CO?KUN and AKYÜZ 2017). The risk management stage receives the greatest emphasis in the Toyota company. It is because there are so many risks associated with the acquisition of new assets such as political, social, governmental and economical.

Conclusion

Therefore, from the above discussion it can be concluded that asset management is a part of business operation. It is essential to keep track of the assets, machines so that they can be arranged in a proper manner. It enhances and facilitates the software and hardware management, regulatory compliance, security and many others. The time and money a company invests on the asset can be saved by adopting a suitable asset management. ISO 55001 is one such asset management system or framework that reduces many additional headaches. It is more like a framework that specifies some requirements for a proper asset management in an organizational context. This framework can be applied to all types of assets, of all types and sizes and firms. This framework helps to manage the lifecycles of the asset starting with acquisition to decommission. The variety of risks associated with costs while owning a new asset can be reduced by implementing such frameworks. Continual improvement and on-going value chain is improved by ISO 55001. In this report the implementation of this framework in the Toyota company has been displayed. The company has become successful by adopting this framework while the acquired some assets.

Reference

1. Arthur, D., Hodkiewicz, M., Schoenmaker, R. and Muruvan, S., 2014. Asset planning performance measurement framework. In CEED Seminar Proceedings 2014, Crawley, Australia, 24-9-2014. Cooperative Education for Enterprise Development (CEED).
2. CO?KUN, ?. and AKYÜZ, G.A., 2017. ISO 55001 STANDART IN ASSET MANAGEMENT AND THE ROLE OF INFORMATION TECHNOLOGIES. Business & Management Studies: An International Journal, 5(2).
3. Godau, R. and Mary McGeoch, F.A.H.R.I., 2016. ISO 55001 Ready–Focus on improving Asset Management Maturity. Change.
4. Hotti, V., 2014. Framework-based data requirements for IT top management. International Journal of Digital Information and Wireless Communications (IJDIWC), 4(3), pp.299-304.
5. Nowakowski, T., Tubis, A. and Werbi?ska-Wojciechowska, S., 2017. ISO 55001 and difficulties of its ecommerceimplementation in polish enterprises. Journal of KONBiN, 42(1), pp.209-234.
6. Parida, A. and Stenström, C., 2016. Asset performance evaluation: A recipe for success or failure. In 29th International Congress on Condition Monitoring and Diagnostic Engineering Management, Xi'an, China, 20-22 August 2016.
7. Parida, A., 2016. Asset performance measurement and management: Bridging the gap between failure and success. Measurement, 9000(14000), p.55.
8. Yates, S., 2015. What does a good strategic asset management plan look like?. Asset Management & Maintenance Journal, 28(2), p.7