Asset Management System: A Plan to Manage Obsolescence

Last week I did a consultancy work with a client and we raised an issue that I think is of great interest. How would an Obsolescence Management Plan be developed within the Asset Management System ISO 55001?

 It seems clear that correct management of obsolescence is necessary for the management of an asset, especially in long-life assets or in assets with rapid technological advances, let's see some ideas on how to raise it.

1. Assets Class Information.

Description of the assets covered by the Plan (that could be all) including description, role, criticality, quantity, and distribution. A good practice is to identify and classify them based on the ISO 14224: 2016 Standard.

In this section, targets of the Plan can be included.

2. Owners and Stakeholders.

Indicating roles and responsibilities related to the asset class and the application of the Plan.

3. Current Level of Obsolescence.

Defining the current situation of obsolescence of the assets covered by the Plan.

4. Factors Affecting Obsolescence.

Identifying factors that accelerate or reduce obsolescence, operational considerations and, mainly, safety, hygiene and environment factors related to the assets obsolescence.

5. Obsolescence Management Programs.

Describing programs used to manage the obsolescence of assets, they could include the following proposals:

• Creation of a list of assets subject to obsolescence risk, including details of risky elements.

• Creation of a technology observatory, in collaboration with other companies or universities, for trends to anticipate technological obsolescence.

• Programs to avoid obsolescence, in agreement with the manufacturers involved, could include carry out modifications and retrofits of assets to reduce risk, or Last Time Buy decision making and End of Life for both equipment and spare parts.

• Obsolescence mitigation programs, including measures for the asset to continue operating, such as the reserve or the manufacture of components that may increase the useful life of the assets.

• Programs to eliminate obsolete assets and inventory, either in the form of assignment, resale or, even, cannibalization of equipment.

6. Budget.

A summary of the required funding to carry out these programs.

7. Risks.

Identification, analysis, evaluation, and treatment of current risks associated with the application of the programs included in the Plan.

8. Support Elements.

Description of resources, competence, communication plans, information requirements, and documented information necessary to carry out the different programs.

9. Implementation deadlines.

Calendar of activities, with milestones and final deadlines, to carry out programs.

10. Controls.

Description of program performance indicators, as well as of the acceptability criteria.