SAND2020-9930R

Asset Management: Beyond

2020
September 2020

Leadership

Mission •Foundation
•Culture
•Platform
•Requirements

Landscape Management
•Structu re •AM Strategies
•Collaboration •Direction

Implementation
•Lifecycle AM
•Pla nning &
Execution
•PME & CI

eg. DEPARTMENT OF

NATS0 Page 1

Sandia National Laboratories is a multimission laboratory managed and operated by National Technology & Engineering Solutions of Sandia, LLC, a
wholly owned subsidiary of Honeywell International Inc., for the U.S. Department of Energy's National Nuclear Security Administration under contract
DE-NA0003525.
Facilities September 2020

Table of Contents
Page

1.0 Asset Management: Beyond 2020 1

1.1 Executive Summary 1

2.0 Asset Management System and Asset Management 2

2.1 Asset Management System and Asset Management— Maximizing the Asset's
Value to Meet Business Objectives 2
2.2 Asset Management System and Asset Management Benefits 4

3.0 International Standards Organization Overview 4

3.1 ISO 55000 — Asset Management Overview, Principles, and Terminology 4
3.2 ISO 55001 — Asset Management: Management Systems Requirements 4
3.3 ISO 55002 — Asset Management: Management Systems — Guidelines for the
Application of ISO 55001 4

4.0 Asset Management Architecture Team — Overview 5

4.1 Asset Management Architecture Team 5
4.2 Asset Management Architecture Team Goals 5
4.3 Asset Management Architecture Team Objectives 5
4.4 Asset Management Architecture Team Responsibilities 6

5.0 Asset Management: Beyond 2020 - Closing the ISO 55001 Gap 6
5.1 ISO 55001 Gap Analysis 6
5.2 ISO 55001 Gap Analysis Scope 7
5.3 ISO 55001 Gap Analysis Approach 7
5.4 ISO 55001 Gap Analysis Summary 8
5.5 ISO 55001 Gap Closure Recommendations Summary 15

6.0 Asset Management: Beyond 2020 - Asset Management Architecture

Recommendation 16
6.1 AM Architecture(AMA)Overview 16
6.2 Navigating through the Asset Management Framework of Elements 20

Asset Management:Beyond 2020 Page A-1

7.0 Asset Management: Beyond 2020 - Asset Management
Recommendations 29

Appendix A: Abreviations/Acronyms and Definitions

List of Figures
Figure 1: AMS and AM in Perspective 3
Figure 2: Asset Management Framework 16
Figure 3: Asset Management Framework — Interrelated Components 17
Figure 4: Asset Management Framework — Hierarchy of Component Elements 18
Figure 5: Asset Management Architecture(AMA) Model 19
Figure 6: Asset Management Framework — Organizational Line of Sight 19
Figure 7: Asset Management Policy Framework 21
Figure 8: SAMP Framework 22
Figure 9: Asset Management Objectives Framework 23
Figure 10: Asset Management Strategies Framework 24
Figure 11: Lifecycle Asset Management Framework 25
Figure 12: LCAM Planning Framework 26
Figure 13: LCAM Execution Framework 27
Figure 14: LCAM Performance Monitoring and Evaluation Framework 28
Figure 15: LCAM Continuous Improvement Framework 29

List of Tables
Table 1: ISO 55001 Alignment Ratings and Results Summary 2
Table 2: Asset Management Architecture (AMA)Team 5
Table 3: Asset Management Architecture Team ISO 55001 Section Leads 6
Table 4: Asset Management Architecture (AMA)Team ISO 55001 Element Leads 6
Table 5: ISO 55001 Alignment Ratings and Definitions 7
Table 6: ISO 55001 Gap Analysis Results 8

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1.0 Asset Management: Beyond 2020

1.1 Executive Summary

This Asset Management Beyond 2020 document provides:(1) an introduction to asset management(AM)
and an asset management system(AMS), along with insights to next steps,(2) an overview ofthe
International Standards Organization (ISO)55000 series documents,(3)an overview of the ISO 55001
gap analysis of Center 4700/4800 ("Facilities") organizations at Sandia National Laboratories, hereafter
referred to as Sandia, with observations, gaps, and gap closure recommendations, and(4)an asset
management architecture(AMA)recommendation aligned with the ISO 55001.
The AMS and the AM are different but related. ISO 55000 cites AMS as "a management system for AM"
to "direct, coordinate, and control AM activities." ISO 55000 cites AM as translating "the organizational
objectives into technical and financial decisions, plans and activities."1 Essentially, the AMS begins with
all levels of leadership to enable a structured and consistent approach to AM culminating in lifecycle asset
management excellence.
Why is AM important at Sandia? Sandia is entrusted with the stewardship of nearly 700,000 real
property-related assets (i.e., building components like air handling units, transformers, carpeting, etc.),
with a replacement value of more than $22.5 billion. This is exclusive of nearly all programmatic-related
real and personal property assets. Assuring our partners and taxpayers that the value ofthese assets is
maximized to ensure the success of Sandia's mission is a requisite that is both resource-intensive and
challenging. The importance of AM and the mandates related to it are embedded in federal executive
orders, DepaiIntent of Energy(DOE)and National Nuclear Security Administration(NNSA)agency
directives, supplemental directives, guidance, and planning documents. Subsequently, the requirement for
AM is rightfully embedded in the Sandia Prime Contract.
Is AM being performed today? Yes, but there is growing interest in developing a structured and
disciplined approach to AM that promotes cross-functional collaboration and that can be implemented
consistently to arrive at the same common corporate AM goals and objectives. AM implies a formalized
structured approach implemented to manage assets through their entire lifecycle. Today, assets are being
managed. However, a documented approach that integrates AM functions within Facilities that are
involved in the entire asset lifecycle does not exist. In addition to this interest, the fact that AM executive
sponsorship is necessary and essential to ensure a successful common approach to AM is being
increasingly recognized AM executive sponsorship will demonstrate that AM is an important cornerstone
in providing a stable and secure platform to accomplish its national security mission. Moreover, executive
sponsorship will signify the importance of AM and begins a path to a sustainable AM culture of
excellence.
Does an AMS exist at Sandia? Although the term itself is not common vocabulary within Sandia, an
AMS does exist and continues to be developed. However, challenges remain relative to a structured and
consistent approach to the implementation of AM activities. An example is the manner in which asset
information is monitored and reported. The monitoring and reporting structures are not consistent.
Information is managed with varying degrees of maturity and through various reporting structures.
Moreover, institutional knowledge of asset information resides with the subject matter experts(SME)and
is not readily available, much less captured in any asset management information system.
What is the status of AM and the AMS at Sandia? Although there are AM working groups internal to
Sandia to promote knowledge sharing related to AM activities—along with an AM joint working group

1 International Standards Organization ISO 55000:2014(E)Section 2.4 — Overview of an Asset Management,

2.4.2(b)

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promoting AM collaboration across NNSA sites—there are no efforts comparing Sandia's AMS to
industry best practices. Therefore, while knowledge sharing and collaboration are essential from a
lessons-learned perspective, improving AM is difficult without knowing the AMS current state or having
a vision for AM.
With all these considerations taken into account, where should Sandia begin in implementing a successful
AMS program? A gap analysis provides an understanding of an organization's AMS current state and
identifies opportunities for improvement in developing an AMS end state. With AM planning for physical
real property assets being performed in Center 4800, Group 4850 conducted a gap analysis to ascertain
the alignment of the current state of Facilities' AMS to the AMS requirements outlined in the ISO 55001
Asset Management. The results of the gap analysis are reflected Table 1: ISO 55001 Alignment Ratings
and Results Summary and is discussed in detail in Section 5. Alignment rating definitions can be found in
Table 5: ISO 55001 Alignment Ratings and Definitions. The alignment ratings in Table 1 are not meant to
demonstrate that Sandia does not have an AMS or that AM is not being performed. Rather, the
understanding should be that AMS improvements are necessary to continue aligning with ISO 55001.
Table 1:ISO 55001 Alignment Ratings and Results Summaiy
ISO 55001 Description Alignment
ISO 55001 (overall) Lagging
ISO 55001 Section 4 — Context *Lagging — immediate attention NOT required
ISO 55001 Section 5 — Leadership **Lagging — immediate attention is required
ISO 55001 Section 6 — Planning Lagging — immediate attention is required
ISO 55001 Section 7 — Support Lagging — immediate attention is required
ISO 55001 Section 8 — Operation Lagging — immediate attention is required
ISO 55001 Section 9 — Performance Evaluation Lagging — immediate attention is required
ISO 55001 Section 10 — Improvement Lagging — immediate attention NOT required
* Immediate attention "NOT"required is intended to convey that there was evidence ofpartial alignment with ISO 55001.
** Immediate attention required is intended to convey that that there is very little evidence of alignment with ISO 55001.

2.0 Asset Management System and Asset Management

2.1 Asset Management System and Asset Management— Maximizing
the Asset's Value to Meet Business Objectives
The concepts of AMS and AM are simple. Yet, their breadth of cross-cutting functional integration and
required resources—coupled with the timeframe to implement and realize value—are the primary
implementation challenges. There are many AMS frameworks founded on philosophies suited specifically
for the organizational business need. ISO 55002 guidance indicates that the application ofISO 55001
requirements, as it relates to the AMS,"should be scalable."2 This provides flexibility in applying the
AMS requirements ofISO 55001 to be commensurate with business needs. Ultimately, no "right"
framework exists to meet every organizational business need, and the only "wrone framework is one that
does not exist. Regardless of the AMS framework chosen and level of implementation, the purposefor
an AMS is to provide a structured, disciplined, and consistent approach to AM,giving assurance that
the asset's value is maximized and enabling thefulfillment ofbusiness objectives and, ultimately,
mission success.
The terms AMS and AM,along with the framework relative to these terms, are related and thus are often
used interchangeably. However, as previously mentioned, AMS and AM are different. ISO 55000 cites

2 International Standard ISO 55002:2014(E), Subsection [Link]

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AMS as "used to refer to a management system for AM."3 "An AIVIS is used to direct, coordinate, and
control AM activities."4 Adding some context, ISO 55000 cites an AMS "as a set of tools, including
policies, plans, business processes and information systems, which are integrated to give assurance that
expected outcomes of AIVI activities will be delivered."5 Therefore, think ofthe AMS as toolbox with all
the "righe' tools needed to enable AM,a process, to yield a desired output. ISO 55000 cites AIVI as
translating "the organizational objectives into technical and financial decisions, plans and activities."6
Think of AM as the overarching process where AM subprocesses are working cohesively to realize the
desired output(maximizing the asset's value). Therefore, an AMS whose role is defined in a Strategic
Asset Management Plan(SAMP), coupled with AM,provides reasonable assurance that assets will fulfill
their intended purpose to meet AM objectives. The SAMP should include "structures, roles and
responsibilities necessary to establish the AMS and to operate it effectively."7 Hence, the AMS enables
AM to yield asset value and collectively enable mission success. Figure 1: AMS and AM in Perspective
provides a visual representation of how the AMS enables the AM process to yield asset value.

1 Asset
Management
System (AMS)
Corporate-
Wide
E> Lifecycle Asset
Management
(LCAM)
Asset Value

Leadersh p

I LCAM
Execution

LCAM
Performance
Monitoring &
AM Policy I Evaluation
and SAMP

LCAM
Continuous
Improvement

Figure 1:AMS and AM in Perspective

3 International Standard ISO 55000:2014(E), Asset Management — Overview, principles and terminology, Section
1, Note 3
4 International Standards Organization ISO 55000:2014(E)Section 2.4 — Overview of an Asset Management,2.4.3
International Standards Organization ISO 55000:2014(E)Asset Management — Overview, principles and
terminology, Section 2.5.1
6 International Standards Organization ISO 55000:2014(E)Section 2.4 — Overview of an Asset Management,
2.4.2(b)
International Standards Organization ISO 55000:2014(E)Section 2.5 — Overview ofthe Asset Management
System [Link]
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2.2 Asset Management System and Asset Management Benefits

ISO 55001 cites the following AM benefits: improved financial performance, informed asset investment
decisions, managed risk, improved services and outputs, demonstrated social responsibility, demonstrated
compliance, enhanced reputation, improved organization sustainability, and improved efficiency and
effectiveness.8 To place some context to these benefits, AMS and AM collectively provide reasonable
assurance that assets are planned and acquired to meet mission requirements, sustained in an effective and
efficient manner to meet mission requirements, and eventually dispositioned. Assets that perform to
design specifications, perform reliably, are capable and available, are sustainable (maintained, rebuilt,
and/or recapitalized), and are dispositioned in a timely manner are indicators of AM success. The
intangible benefits are building credibility through customer satisfaction, asset stewardship excellence,
fiscal and environmental responsibility, and justifiable data-driven risk-based decisions.

3.0 International Standards Organization Overview

3.1 ISO 55000 — Asset Management Overview, Principles, and

Terminology9
The ISO 55000 international standard provides an overview of AM and the AMS. It discusses the benefits
of AM,outlines AM fundamentals (asset value, alignment with organizational objectives, leadership, and
assurance), describes the purpose and elements of an AMS,emphasizes the importance of an integrated
approach to AM,and provides definitions to AM terms to form a common language that drives a
consistent understanding of [Link] 55000 "provides the context for ISO 55001 and ISO 55002."10

3.2 ISO 55001 —Asset Management: Management Systems

Requirements11
ISO 55001 outlines the overarching requirements for the development of an AMS framework. It provides
the "whar to be included in the framework, and the requirements are delineated in seven sections as
follows: Context, Leadership, Planning, Support, Operation, Performance Evaluation, and Improvement.
ISO 55001 neither provides the specifics of how to develop an AMS framework nor does it provide
specific direction on AM activities.

3.3 ISO 55002 — Asset Management: Management Systems —

Guidelines for the Application of ISO 5500112
ISO 55002, as the standard's title implies, provides guidance and considerations to implement each ofthe
seven sections ofISO 55001. It provides context and meaning to the requirements ofISO 55001 that
reasonable assurance can be provided, demonstrating that the intent ofthe requirements is fulfilled. Given

8 International Standards Organization ISO 55000:2014(E)Subsection 2.2 — Benefits of Asset Management, 2.2(a)
thru (i).
9 International Standard ISO 55000:2014(E) Standard Title
1° International Standard ISO 55000:2014(E), Subsection 0.1 — Purpose
11 International Standard ISO 55001:2014(E)Standard Title
12 International Standard ISO 55002:2104(E) — Standard Title
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that ISO 55002 provides guidance, it should not be interpreted as being a minimum nor exhaustive set of
factors to be considered when implementing ISO 55001.

4.0 Asset Management Architecture Team — Overview

An ISO 55001 gap analysis is the initial step in reviewing the AMS to continually improve and sustain a
long-term, structured, disciplined, and consistent approach to AM. To begin the gap analysis effort, an
AMA team was formed consisting of managers, strategic planners, an engineer, and operations and
engineering leads, each with varying levels of Sandia experience.

4.1 Asset Management Architecture Team

The AMA team was composed of representatives from Sandia National Laboratories-New Mexico(SNL-
NM)(Depts. 4700 & 4800)and Sandia National Laboratories-California(SNL-CA)(Dept. 8547). Table
2: Asset Management Architecture Team, identifies the team members and the represented organizations.

Table 2:Asset Management ArchitectureTeam

Site/Department Name Title
SNL-NM/4744 — Facilities Mechanical Chris Evans Manager, Mechanical Services
Services
SNL-NM/4851 — Systems Engineering Gabriel Martinez Mechanical Engineer
SNL-NM/4852 — Infrastructure Jeremy Michaels Manager, Infrastructure Engineering
Engineering
SNL-NM/4853 —Asset Management Birgitta Foster Strategic Planner
SNL-NM/4853 —Asset Management John Zavadil Strategic Planner
SNL-NM/4853 —Asset Management Pete Otero Manager, Asset Management
SNL-NM/4853 — Asset Management Waylon Clark Operations & Engineering Lead
SNL-NM/4854 — Strategic Planning Diane Sholtis Strategic Planner
SNL-CA/8547 — Partnership & Jennifer Herrington (ad hoc) Operations & Engineering Lead
Planning

4.2 Asset Management Architecture Team Goals

The AMA team gap analysis goals are to:(1) determine the ISO 55001 alignment rating with the current
state of Facilities' AMS,and (2)recommend an AMA that promotes cross-functional AM collaboration
with emphasis on a data-driven risk-based approach to AM decision making 13

4.3 Asset Management Architecture Team Objectives

The AMA team gap analysis objectives are:(1)to crosswalk ISO 55001 AMS requirements to the current
state of Facilities' AMS,as well as identify gaps and gap closure recommendations; and (2)to develop an
AMA based on an AMS framework as outlined in the ISO 55000 AM series documents.

13 NNSA Supplement Directive(SD)430.1 as incorporated into the SNL Prime Contract requires SNL to implement
real property asset management in accordance with industry best practices. ISO 55000 Asset Management —
Overview, principles and terminology (2.4.2)(b)(1)re-emphasizes the importance of a data-driven risk-based
approach to asset management.
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4.4 Asset Management Architecture Team Responsibilities

M/IA team members were assigned ISO 55001 sections to lead the gap analysis and provide gap analysis
guidance. Table 3: Asset Management Architecture Team ISO 55001 Section Leads, identifies the ISO
55001 section and the respective AMA team member section lead.
Table 3:Asset Management Architecture Team ISO 55001 Section Leads
ISO 55001 Section Description Team Member Section Lead(s)
Section 4 — Context Pete Otero
Section 5 — Leadership Chris
Section 6 — Planning Diane Sholtis/Gabe Martinez
Section 7 — Support Jeremy Michales
Section 8 — Operation John Zavadil
Section 9 — Performance Evaluation Waylon Clark
Section 10 — Improvement Birgitta Foster

Within each ISO 55001 section, there are subsections with many cross-cutting-related factors, which
made the gap analysis cumbersome. To provide clarity on the approach to the gap analysis, elements were
created that best represented the overlapping factors. These elements are listed in Table 4: Asset
Management Architecture ISO 55001 Element Leads.
Table 4:Asset Management Architecture(AMA) Team ISO 55001 ElementLeads
ISO 55001 Element Description Team Member Element Lead
Culture Pete Otero
Continuous Improvement Birgitta Foster
Integrated Asset Management Birgitta Foster
Leadership & Commitment Chris
AMP/LCAMP/SAMP/Org Plan Diane/Gabe
Risk Management Diane Sholits/Gabe Martinez
Resources/Roles & Responsibilities Jeremy Michaels
Data/Process Documentation John Zavadil
Asset Management Context John Zavadil
AM & Org Objectives/AM Policy Pete Otero
AM Performance Monitoring & Evaluation Waylon Clark
Asset Scope/Portfolio Requirements Waylon Clark

5.0 Asset Management: Beyond 2020 - Closing the ISO 55001

Gap

5.1 ISO 55001 Gap Analysis

The ISO 55001 gap analysis leveraged the Institute of Asset Management(IAM)assessment
methodology to determine gaps between and alignment with the current state of Facilities' AMS relative
to ISO 55001. The IAM maturity ratings guidance was used in determining an alignment rating. Because
the IAM maturity rating guidance differed for many ofthe assessment questions, gap analysis alignment

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ratings of Lagging, Aligning, and Leading were developed and are derivatives of the IAM14 maturity
ratings. These alignment ratings versus the IAM maturity ratings provide a common intuitive alignment
definition along with a qualitative description ofthe alignment of the current state of AM relative to ISO
55001. The alignment ratings are shown in Table 5: ISO 55001 Alignment Ratings and Definitions.

Table 5:ISO 55001 Alignment Ratings and Definitions

ISO 55001 Alignment Rating Alignment Rating Definition
At least 50% of the IAM questions evaluated suggested that the current state
Lagging
of the AMS alignment with ISO 55001 is lagging.
Greater than 50% but less than 80% of the IAM questions evaluated
*Lagging — immediate
suggested that the current state of the AMS alignment with ISO 55001 is
attention NOT required
lagging.
**Lagging — immediate At least 80% of the IAM questions evaluated suggested that the current state
attention required of the AMS alignment with ISO 55001 is lagging.
* Immediate attention "NOT"required is intended to convey that there was evidence ofpartial alignment with ISO 55001.
** Immediate attention required is intended to convey that that there is very little evidence of alignment with ISO 55001.

5.2 ISO 55001 Gap Analysis Scope

While the FY20 D4K Facilities Balanced Scorecard Objective P&P-02 limited the scope of the ISO gap
analysis to Group 4850, the scope of the ISO 55001 gap analysis was extended to perform the following:
1. Identify gaps between deployed AMS elements in Facilities Centers 4700/4800 and the ISO
55001 AMS requirements.
2. Provide gap closure recommendations to eliminate the identified gaps. It is important to note that
the gap analysis neither reviewed the effectiveness and efficiency ofexisting AM activities nor
identified what activities should be performed. Rather, the gap analysisfocused on the
existence ofthe ISO 55001 requirementsfor an AMS to effectuate AM.
3. Develop an AMA proposal that could lay the groundwork for a structured, disciplined, and
consistent approach to AM.

5.3 ISO 55001 Gap Analysis Approach

The approach to the gap analysis proceeded as follows:
1. Review the ISO 55000 AM documents.
2. Crosswalk the ISO AMS requirements to the current state of Facilities' AMS.
3. Use questions from the IAM assessment tool and ISO 55001/55002 as guidance:
a. Determine and document the ISO 55001 AMS gaps;
b. Provide an alignment rating for each ofthe seven ISO 55001 sections; and,
c. Provide gap closure recommendations to further align the current state of the AMS with
ISO 55001 AMS system requirements.
4. Recommend an AMA.

14 IAM — Institute of Asset Management is a registered trademark.

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5.4 ISO 55001 Gap Analysis Summary

The ISO 55001 gap analysis focused on the current state of the AMS and its alignment with the ISO
55001 AMS requirements as outlined in the following sections: Context, Leadership, Planning, Support,
Operation, Performance Evaluation, and Improvement.15
The AMA team's common observation throughout the gap analysis is the absence of a structured,
disciplined, and consistent approach to AM. The underlying causal factors for this observation are the
absence of an executive leadership sponsor for AIVI, an AM policy, a SAIVIP, an AM-specific vision and
mission, organizational and tactical level AM objectives, and an AM communication plan. Moreover, the
AMA team concluded that their absence creates unclear AM roles and responsibilities, competing AIVI
objectives, different AM direction and/or implementation approaches, and AM activities that do not
support common AM goals and objectives, as well as hinders an AM culture where everyone understands
how their contributions affect AM and ultimately the mission. As a result, the overall ISO 55001
alignment rating was lagging. The lagging rating indicates that the alignment ofthe current state of the
AMS relative to ISO 55001 is in development as compared to an organization that is either ISO 55001
certified or is seeking certification. The lagging rating does not indicate that an AMS does not exist or
that AM is not being performed to some degree. Table 6: ISO 55001 Gap Analysis Results provides the
overall ISO 55001 alignment rating along with qualified alignment ratings for each ISO 55001 section.

Table 6:ISO 55001 Gap Analysis Results

ISO 55001 Overall Alignment Rating *86% Lagging Lagging

ISO 55001 Section Alignment Rating with Qualification

i
**Lagging — immediate
4 Organization Context 65% Lagging
attention NOT required
***Lagging — immediate
5 Leadership 95% Lagging
attention required
Lagging — immediate
6 Planning 100% Lagging
attention required
Lagging — immediate
7 Support 82% Lagging
attention required
Lagging — immediate
8 Operation 86% Lagging
attention required
Lagging — immediate
9 Performance Evaluation 100% Lagging
iiltion required
Lagging — immediate
10 Improvement 70% Lagg in g
attention NOT required
• % Lagging is an indication oflagging rating given as compared to other alignment ratings given.
** Immediate attention "NOT"required is intended to convey that there was evidence of partial alignment with ISO 55001.
*** Immediate attention required is intended to convey that that there is very little evidence of alignment with ISO 55001.

15 International Standard ISO 55001:2014(E)

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5.4.1 ISO 55001 Section 4 — Context of the Organization: Purpose, Gap Analysis
Summary, and Gap Closure Recommendations

Purpose: ISO 55001 Section 4 identifies the requirements that would demonstrate an organization's
understanding of the AMS coupled with the overall strategic approach to AM and the factors that "affect
its ability to achieve intended outcomes."16 These factors include the organization's purpose (vision,
mission, and core values), asset requirements, risk-based decision making criteria, asset portfolio, the
AMS scope, and the application of integrated environment, safety, security, and health(ESS&H), quality,
and risk management systems.
Gap Analysis Summary: While the term AMS is not used within Sandia, an AMS exists within Division
4000(D4K). D4K centers have AM planning and execution functions for managing physical assets.
However, executive asset management sponsorship, corporate-specific AM objectives, an AM strategic
vision, AM mission expectations, an AM policy, a SAMP,AM objectives, asset management plans
(AMPs), and AM strategies were the noted gaps. While AMPs—specifically area plans and lifecycle asset
management plans(LCAMPs)—are in the development stages, these planning documents must be aligned
with each other and with the AM policy, SAMP,AM objectives, and AM strategies. The absence ofthese
ISO 55001 requirements hinders a common approach to AM,thus preventing cross-cutting AM functions
from collaborating and working cohesively to meet AM objectives. To install a culture of AM excellence,
corporate-wide AM awareness, and a clear understanding ofthe AM vision, policy, SAMP,corporate and
organizational AM objectives, and AM strategies is essential. As a result of the noted gaps, the alignment
rating for Section 4 was "Lagging."
Gap Closure Recommendations:
1. Obtain corporate-level AM sponsorship and include AM expectations, goals, and objectives in the
Corporate Strategic Plan.
2. At the Associate Laboratory Director(ALD)Division Leadership level, champion AM and
develop an AM policy, SAMP,and a strategic AM vision aligned with corporate-specific AM
strategic goals and objectives.
3. At the Center Leadership level, develop AM objectives and mission aligned with the SAMP and
ALD strategic AM vision.
4. At the Group and Department Leadership levels, define AM strategies to be aligned with the
Sandia Corporate Strategic Plan, the ALD strategic AM vision, the AM policy, the SAMP,and
AM objectives.
5. At the Group and Department Leadership levels, develop an AM communication plan that aligns
with the communication strategy.

5.4.2 ISO 55001 Section 5 — Leadership: Purpose, Gap Analysis Summary,and

Gap Closure Recommendations

Purpose: ISO 55001 Section 5 identifies the requirements that would demonstrate at all
leadership/management levels the willingness, commitment, and support of an AMS and subsequent AM
that fosters a culture of lifecycle AM excellence. The focus ofthe requirements is embedded in the
development and sustainment of an AM policy, a SAMP,and AM objectives.
Gap Analysis Summary: The AM principles and overarching guidance to achieve AM objectives are not
explicitly defined in any existing Sandia planning or procedural document. In the absence of an AM

16 International Standard ISO 55001: 2014(E) Asset Management Section 4.1 — Understanding the organization and
its context.
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policy, SAMP,and AM objectives, the underlying message is that AM is not as important as other
business needs. In turn a culture of lifecycle ATVI excellence is difficult to promote and sustain. Lifecyle
AM will be mediocre at best, and resulting asset failures will eventually have adverse effects on the
ability to meet mission deliverables. As a result ofthe noted gaps, the alignment rating for Section 5 was
"Lagging."
Gap Closure Recommendations:
1. Currently, ISO 55001 is not supported at the corporate, D4K, or all subsequent D4K levels at Sandia.
Many elements ofISO 55001 exist and are being practiced in various forms, but they exist in stand-
alone AM documents. Sandia D4K leadership should develop a SAMP document that will tie current
AM documents together. Being that facilities is divided into two Centers, the SAMP needs to be
developed at the division level and then allowed to flow down to the center levels.
2. AM planning activities are heavily centered around Center 4800 with minimal input/representation
from Center 4700. Collaboration between AM planning and execution is a requisite and therefore
must be communicated and driven at the Division level. In addition, AM should be included as a part
of the corporate strategic objectives.

5.4.3 ISO 55001 Section 6 — Planning: Purpose, Gap Analysis Summary and Gap
Closure Recommendations

Purpose: ISO 55001 Section 6 identifies the requirements that would demonstrate how asset management
objectives are developed from and aligned with corporate objectives, communicated and implemented
through asset management plans, monitored, and have risk management provisions put in place to assure
the success of the mission.
Gap Analysis Summary: As it pertains to planning, AM organizational objectives need to be established
and further developed through the AM objectives. While there are internal planning documents and work
improvement plans, they are at the system level and do not address criteria outlined in ISO 55001, nor are
they consistent across the systems. LCAMPs exist to some degree, but they are inconsistent at best. They
lack both support from SMEs and a structured system ofreporting and are therefore inconsistent. There is
an additional lack of consistent alignment of NNSA capabilities and asset data management and
reporting. Area plans will be driven by NNSA capabilities, but assets do not necessarily align with those
capabilities. An AM policy and AM objectives are nonexistent, and therefore the items that follow, such
as planning, documentation, information management, and risk management, are disjointed and lacking
integration. Furthermore, no AM documents exist to convey AM objectives at relevant functions and
levels. As a result of the noted gaps, the alignment rating for Section 6 was "Lagging."
Gap Closure Recommendations:
1. Create an AM architecture complete with policies, objectives, resources(RACI), and systematic
approaches to planning and reporting. Future lifecycle area and lifecycle AMPs should strictly
follow this new framework and apply all principles that lie within to better align with ISO 55001.
Planning activities should include information identified by the risk management process through
structured data monitoring and evaluation, incorporate recommendations and evaluations from
the LCAMPs,and align with corporate objectives, NNSA capabilities, and the newly established
AM policies and objectives. The synthesis that would occur from the alignment of NNSA
capabilities and assets would be reflected in the area plans and LCAMPs. A SAMP would further
align the recommendation. These policies, plans, and objectives should be communicated from
upper management to all lower levels and disseminated across the organization for consistent
implementation.

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2. Information and data should be consistently managed and reported by all stakeholders and
administered to be effectively synthesized for reporting to NNSA. Furthermore, some alignment
with NNSA capabilities will be necessary.

5.4.4 ISO 55001 Section 7 — Support: Purpose, Gap Analysis Summary,and Gap
Closure Recommendations

Purpose: ISO 55001 Section 7 identifies the requirements that would demonstrate that adequate and
competent resources exist and asset information requirements are known, documented, and available to
support the necessary processes that enable asset management. In addition, communication requirements
to promote asset management awareness is also outlined.
Gap Analysis Sumrnary: The team considered existing Facilities' processes and resources in the ISO
Support section ofthe analysis. The analysis considered the following questions and statements: How
does the organization ensure that resources required to establish, implement, maintain, and improve the
asset management system are determined and provided? How does the organization ensure that persons
performing work under the organization's control are aware ofthe how they impact the achievement of
asset management objectives? How does the organization determine internal and external communication
requirements related to assets and asset management systems? Finally, what has the organization done to
determine what asset management information is required to support its management of assets, the AM
system, and organizational objectives.
Facilities has committed resources to AM and retains key staff that are knowledgeable and competent in
their subject areas of influence. They understand their influence on the operations of systems, role in
planning projects and identifying risks, and routinely make strong contributions to manage our assets.
One of the shortcomings is that our organization still needs to define the AM strategy, the AM objectives,
and the expectations for the AMPs. The concept of AM is not currently connected or integrated across the
Facilities organizations. The roles and responsibilities for AM are not developed across 4700/4800;
however, many individuals know they have a role in AM.
The organization has made a commitment to the development of LCAMPs. It should be noted that the
development of these LCAMPs are not always the priority for the assigned resources and that it has been
difficult to gather related asset information. The current state within the organization is that we have
many elements ofthe AMS. The organization could improve AM and realize efficiencies through
improved integration of AM elements.
Facilities has several processes and deliverables through which asset information is comrnunicated and
reported. Information is communicated through tier boards, planning documents, and in focused efforts.
The exchange of information with external stakeholders typically consists of planning efforts,
presentations, and documents. Strategic planning activities with line customers gather customer
requirements through facilities and infrastructure planning activities and similar efforts. This exchange of
information is typically at a higher level and may not always consider detailed asset information. Our
organization could benefit from improving how and when asset information is collected, analyzed, and
evaluated.
We began our journey to improve AM,and the LCAMP templates are identifying information and
process gaps as we work to develop LCAMPs. The organization has not determined information
requirements to support its AMS, AM,assets, and the achievement of its organizational objectives beyond
contract deliverables. There are several processes and asset information systems in place that can be
leveraged to form our AMS such as Facilities Information Management System (FIMS), BUILDER,
Maximo, and ProjectWise. Each of these asset information systems play a role in information
requirements and the management ofinformation in support of an AM program. The information has not
been integrated into a program.
Asset Management:Beyond 2020 Page 11
Facilities September 2020

The gaps that were identified include:

• Specifically looking at ISO 15001 Section 7.2. The organization has not completed a SAMP that
would help determine the resource needs ofthe program.
• There are activities within the organization that can add value to the AM program; however,these
activities are not integrated. Observations and results from work activities completed by maintenance
and Facilities Area Management teams may not roll up into the AMS
• The integration of maintenance data, test reports, and related condition information could drive
efficiency in the AM program.
• Preventive maintenance plans, condition assessments and other components of an AMS are siloed.
Results of are not integrated into AM.
• Our FCS and Building Automation System could be utilized to better inform our AMS. Look for
opportunities to improve integration.
• The staff awareness within the organization and the understanding of how their role affects AM is not
consistent. Staff members in pockets of the organization may lack awareness of how their job role can
support and impact AM.
• The organization does not consistently communicate the significance of the identified risks through
an AM structure. We do effectively communicate risks through our tier board structure.
As a result ofthe noted gaps, the alignment rating for Section 7 was "Lagging."
Gap Closure Recommendations:
1. Facilities should consider developing the AM objectives, an AM policy, and documenting them in a
SAMP. The SAMP would help communicate our asset management strategy to our organization and
be beneficial in the evaluation ofthe resource needs to support AM. The development of LCAMP
documents will define in detail the type of information that is required to support AM. We also have
BUILDER and other systems that provide information. The first action may be to simply perform a
self-assessment of asset information and identify gaps. It is recommended that the organization would
complete a self-assessment of required asset information and data to determine where gaps exist
supporting the development of the SAMP.
2. Create an AM culture and ensure that our AMS clearly communicates roles and responsibilities.
Ideally, support for AM would be incorporated into our culture so that each person understands how
their efforts are related to AM.
3. Our organization should develop a process to oversee and communicate the effectiveness and value of
the AM program. The effort should include financial analysis and cost avoidance to help justify the
resources supporting AM.
4. Develop an AM communication strategy at the corporate level that communicates AM progress, risks,
financials, and related information. The communication strategy could be integrated into the
laboratory operating system, or flow down from divisions, to centers and to departments, to allow for
information to be integrated and communicated efficiently.

5.4.5 ISO 55001 Section 8 — Operation: Purpose, Gap Analysis Summary,and Gap
Closure Recommendations

Purpose: ISO 55001 Section 8 identifies the requirements that would demonstrate that change
management systems exist to control and manage risks associated with changes to AM roles and
responsibilities, policies, plans, and objectives.

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Facilities September 2020

Gap Analysis Summary: The team looked at Facilities' processes for controlling the implementation of
AMPs,how well they are being implemented, and how effective they are, for both in-house and
outsourced activities. This includes risk assessment and management before and during implementation
of changes, as well as mitigation of any negative effects.
Facilities does have a Quality Management System(QMS)in place for controlling and implementing
some AM activities. The QMS is managed by Department 4801, Strategic and Technical Operations.
However, because Facilities does not have comprehensive AMPs,the team could not assess the
effectiveness of the QMS to control and manage changes to AM activities. For the most part, QMS is
used to plan for business needs, support major initiatives, and provide centralized resources for
requirements management, risk management, publications, process design, training, measures and
metrics, audits and assessments, corrective actions, lessons learned, communications, information
technology, records, and continual improvement. Once an AMP has been developed, Facilities will use
QMS to track and manage its objectives. Specific observations include:
• Facilities does not have a comprehensive SAMP or AMPs,and formal objectives related to AM are
minimal
• Sandia does have methods in place to identify internal and external issues at the corporate level, but
these mainly deal with high-level missions and flowdown to AM is inconsistent.
• Facilities has not developed a systematic approach to address or mitigate the risk of changes that
affect the entire AMS. Risk management is dealt with on a case-by-case basis.
• Metrics are kept estimating the overall condition of assets (deferred maintenance, Facility Condition
Index, etc.), but these are mainly lagging and not proactive.
• Facilities outsources some AM activities, such as condition assessment survey inspection, but the
drivers behind these decisions are resource capability and availability driven. Risk is not considered
when making outsourcing decisions.
• Performance monitoring is not consistent across contracts. Sandia-Delegated Representatives must
assess the contractor in Oracle after approving each invoice, but Facilities has not developed
guidelines for doing these assessments, nor are any ofthe assessment questions specifically related to
AM.
• Many of Facilities' contracts are one deep. If the contractor shuts down or decides to stop supporting
Sandia, it would take several months to find a replacement and put a contract in place.
As a result of the noted gaps, the alignment rating for Section 8 was "Lagging."
Gap Closure Recommendations:
Facilities should formalize the AMS and develop a SAMP whose inputs are aligned with Error! Reference
source not found.. Depaitment 4801 should help develop and implement this plan using QMS,and then
use existing processes once the system is in place to determine whether objectives are met, processes are
implemented, risks of planned changes are properly assessed and managed, and outsourced activities are
properly identified, managed, and controlled.

5.4.6 ISO 55001 Section 9 — Performance Evaluation: Purpose, Gap Analysis

Summary, and Gap Closure Recommendations

Purpose: ISO 55001 Section 9 identifies the requirements that would demonstrate asset performance
monitoring, and evaluation processes exist to assure asset performance and asset management objectives
are being fulfilled. Note that while the performance evaluation requirements apply to the AMS,including
the assets themselves, the focus ofthe gap analysis was on performance of assets.

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Facilities September 2020

Gap Analysis Summary: As it pertains to the performance of assets, it was noted that there are programs
in place that could be leveraged to help meet the intent ofISO 55001 (Reliability-Centered Maintenance
and the Predictive Maintenance teams within 4700), none of which are currently geared toward the most
noted gaps. The two gaps are the lack offormal documented processes that answer the following:
• How has the organization determined what assets need to be monitored and measured?
• How has the organization determined what information generated via its monitoring and
measurement processes need to be analyzed, evaluated, and reported?
As a result of the noted gaps, the alignment rating for Section 9 was "Lagging."
Gap Closure Recommendations:
1. Provide structure within the AMS that dictates the flow ofinformation from assets that are
monitored (i.e., identify who analyzes the data [Center, Group, Department], how it is evaluated,
and to whom the determinations made from the evaluations are reported [Center, Group,
Depaitment]).
2. Leverage the creation of the SAMP and AMPs to provide a clear rationale as to which assets
require monitoring and measurement with concurrence and participation from all affected entities
within Facilities.
3. Leverage audits from top management to ensure that they are both a champion for asset data-
driven decision making and championing an overall effort toward asset health
monitoring/condition-based monitoring methods for Facilities assets.

5.4.7 ISO 55001 Section 10 — Improvement: Purpose, Gap Analysis Summary and
Gap Closure Recommendations

Purpose: ISO 55001 Section 10 identifies the requirements that would demonstrate a process for
continuous improvement exists for the AMS and AM. The focus on improvement affect asset anomalies
and process failures.
Gap Analysis Summary: Even within its corporate behaviors, Sandia advocates a Continuous
Improvement(CI)culture. There are existing CI processes embedded in corporate programs for
DOE/NNSA reportable activities such as ES&H accidents and Physical Security incidents. These
programs have staffed, robust processes for recording, resolving, and reporting
incidents/deficiencies/process failures, developing preventative/corrective actions plans, and performing
follow up assessments. Currently, there are no similar formal CI programs for an AMS and AM within
Facilities. The primary gap for the development of a valued AM CI program was conclusively identified
as a lack of established D4K AM Policy, SAMP and AM objectives that align with Sandia's annual
Corporate Goals and Objectives.
Although credit was considered for the existing Corporate CI programs, the alignment rating as a result of
the noted gaps for Section 10, is "Lagging."
Gap Closure Recommendations:
The critical initial step is for D4K top management to commit to Facilities' AMS and AM program
structured around ISO 55001 framework, followed by the establishment of an AM Policy, SAMP and
Facilities' AM objectives that is aligned with Sandia's Corporate goals and objectives. Once those are
launched, AMPs can be developed providing the required components for a robust CI program for the
AMS. These components must include:

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Facilities September 2020

1. Corrective action processes for nonconformities, failures, and incidents on assets and AIVIS with
defined roles, responsibilities, and fundamental criteria for identifying and investigating
nonconformities and incidents.
2. Preventative action processes for assets utilizing proactive monitoring procedures of asset
performance and evaluation processes for determining an asset's need for preventative actions.
Roles, responsibilities and monitoring criteria must also be defined.
3. Follow up procedures for asset nonconformities, failures, or incidents that require corrective and
preventative actions, processes established to document the identified actions on the asset or
changes to AMS. The recording of results should have a review process to assess their
effectiveness.
4. Processes established on how to control nonconformities and their consequences and to minimize
any adverse effects.
The SAMP should consider an AM configuration management process for reporting, tracking,
monitoring, and documenting changes in AM activities including CI processes. Additionally, the SAMP
should address staff support needs to maintain and sustain a robust CI Program.
Review of existing Corporate ES&H and Security CI Program processes and staffing for nonconformity
and/or incidents reporting/investigating/recording should be performed to evaluate how to adapt for the
AMS and AM needs.

5.5 ISO 55001 Gap Closure Recommendations Summary

Below is the compilation of gap closure recommendations from each ISO 55001 section:
1. Obtain Executive Leadership sponsorship for AM.
2. Develop Corporate AM specific objectives.
3. Develop an AM Policy, SAMP and AM Vision at the Division leadership level
4. Develop AM objectives at the Center Leadership level aligned with the Corporate AM objectives,
AM Policy, SAMP and D4K Vision.
5. Develop an AM communication plan at the Group and Department Leadership levels.
6. Develop AM strategies at the Group and Depai hilent Leadership levels.
7. Align Area-Plans with LCAMPs and further align with the AM Policy, SAMP and AM
Objectives.
8. Develop an Asset Health Monitoring Program aligned with the performance monitoring and
evaluation requirements ofISO 55001.
9. Apply QMS to ensure the AMS is enabling AM and to validate AM objectives are being fulfilled.
10. Develop an AM configuration management process.

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Facilities September 2020

6.0 Asset Management: Beyond 2020 - Asset Management

Architecture Recommendation
6.1 AM Architecture(AMA) Overview
As previously introduced in Section 2.1, the AMS coupled with AM is the framework, hereinafter
referred to as the AM framework, for providing a structured, disciplined, and consistent approach to AM.
The AM framework's purpose is to maximize the asset's value in support of mission requirements. The
AM framework consists ofthe mission, which is the platform that establishes an understanding of asset
requirements; leadership, which develops the foundation setting the AM culture of excellence; the
landscape, which is a roadmap identifying AM principles and expectations that promote collaboration
across the organization; management, which defines AM strategies that provide direction on AM
implementation; and implementation of lifecycle [Link] 2: Asset Management Framework shows
the basic concept of an AM framework. The components ofthe AM framework (Platform, Foundation,
Structure, Strategies, Lifecycle AM)and the Asset Scope are interrelated, and Figure 3: Asset
Management Framework — Interrelated Components shows these interrelationships

Mission` Leadership
•Platform •Foundation
•Requirements •Culture

Landscape
•Structu re Management
•Collaboration •AM Strategies
•Direction

Implementation
•Lifecycle AM
•Pla nning &
Execution
•PME & CI

Figure 2:Asset Management Framework

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Facilities September 2020

Asset Management
Platform

Asset Management
Foundation

Asset Management
Structure

Asset
Management
Strategies

Lifecycle Asset
Management

Asset
Scope

Figure 3:Asset Management Framework — Interrelated Components

An AIVIA is the systematic layered construct of components and elements forming the AM framework
that drives a structured, discipline,d and consistent approach necessary to sustain lifecycle AM
excellence. The sequence of the AMA construct is as follows:
1. AM Platform: The AMA begins with a platform, which is the premise of an organization's
existence. In Sandia's case it is national security (the mission) and the core values of ESS&H.
The AIVI platform is about understanding the asset requirements needed to meet
stakeholder/partner expectations and ultimately mission goals and objectives.
2. AM Foundation: The AM foundation is then built on this platform with emphasis placed on all
levels of leadership and management being committed to an AM vision, mission, corporate AM
plan, goals, and objectives. The foundation is a roadmap providing direction and expectations that
foster a culture oflifecycle AM excellence.
3. AM Structure: The AM structure consists of the development and sustainment of AM-specific
policies, guiding principles, roles, and responsibilities that are engrained in the AM culture. It's a
continued leadership commitment to establish and support an AM policy, a SAMP,and AM
objectives that are aligned with corporate AM goals. The AM structure builds a culture of
collaboration across the organization and promotes the importance of AM.
4. AM Strategies: The AM strategies are then developed and define approaches to enable lifecycle
AM (LCAM). AM strategies include resource and LCAM strategies. A resource-planning
strategy focuses on the right-sized skilled workforce, funding, tools, asset information and related
information systems, and integrated management systems inclusive ofESS&H core values,
quality (continuous improvement), and risk management. The LCAM strategy focuses on LCAM
planning and execution guiding principles that are aligned with the AM policy, the SAMP,and
AM objectives.
5. Lifecycle AM:LCAM focuses on the AM planning, execution, performance monitoring and
evaluation(PME), and continuous improvement(CI) during the asset lifecycle phases of

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Facilities September 2020

planning, sustainment, and disposition. The AM strategies are then deployed to:(1)implement
LCAM planning, which culminates in the creation of area and lifecycle asset management plans
(referenced herein as Area AMPs and LCAMPs), and (2)to execute the identified plan activities
to meet AM objectives.
6. AM Scope/Portfolio: Finally, the AM scope/portfolio is the inventory of assets to which AMS
and the AM will be applied.
Figure 4: Asset Management Framework — Hierarchy of Component Elements shows the AMS and AM
elements and flow ofinputs.

•National Security Mission, ESS&H Core Values

•AM Corporate Plan, Goals & Objectives
Asset
•Leadership, Culture, Vision, AM Policy & SAMP
Management
• AM Objectives and AM Mission
System (AMS)
•Resource and Lifecycle AM Strategies

•LCAM Planning (Plan)

(Lifecycle) Asset •LCAM Execution (Do)
Management •LCAM Performance Monitoring & Evaluation (Check)
(LCAM) •LCAM Continuous Improvement (Act)

•AM Boundaries
•Facilities (Real Property Assets)
•Line (Programmatic Real Property Assets)
•AM Portfolio
•Real & Programmatic Real Property Assets
•Asset Data & Information Systems

Figure 4:Asset Management Framework — Hierarchy of Component Elements

Figure 5: Asset Management Architecture(AMA)Model shows a "bottom-up" construct to an

AM framework approach.

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Facilities September 2020

Asset Management •Real and Programmatic Real Property Assets

Asset Management
Scope/Portfolio •Asset Data and Information Systems
•

I i ec c e • sset [Link] Exce enc:

+Mr
•LCAM Planning & Execution
Lifecycle Asset Management
•LCAM PME
(LCAM) •LCAM Continous Improvement(CI)

•Resource Strategies
Asset Management System

•Lifecycle Asset Management Strategies

•AMObjectives
Asset Management Structure
•Asset Management Mission

•AM Leadership, Culture, Vision & AM Policy

Asset Management Foundation
*Strategic Asset Management Plan (SAMP)

•National Security Mission, ESS&H Core Values

Asset Management Platform
• Corporate Strategic Plan, Goals & Objectives

Figure 5: Asset Management Architecture(AMA)Model

Figure 6: Asset Management Framework — Organizational Line of Sight provides a "top-down"

organizational perspective of the flowdown of the AMS components and the expected AM outcomes.

r Corporate — Asset Management Platform

Corporate Strategic Plan Corporate AM Goals & Objectives

Division — Asset Management Foundation

Asset Management Vision & Policy ♦ Strategic Asset Management Plan

AP
f Center — Asset Management Structure
Asset Management Objectives Asset Management Mission
1
Group — Asset Management Strategies
Asset Management Resource Strategies Lifecycle Asset Management Strategies

Department — Lifecycle Asset Management

LCAM Planning & Execution LCAM PME & CI

Figure 6: Asset Management Framework — Organizational Line ofSight

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Facilities September 2020

6.2 Navigating through the Asset Management Framework of Elements

Navigating through the AM framework of elements provides an understanding of the composition of the
elements. As referenced in Section 5.2, the gap analysis did not focus on AM activities. Therefore, the
focus on navigating through the AM framework of elements is on the "what," not the "how." The "how"
is equally if not more important than the "whar and should be developed by the SMEs who are engaged
daily with AM activities.

6.2.1 Asset Management Policy

ISO 55000 places the responsibility for developing the AM policy on leadership and emphasizes that the
policy should be driven by an AM vision and mission also created by leadership. The AM policy should
list the principles for meeting organizational and subsequently AM objectives.17
ISO 55001 identifies the minimum AM policy requirements, offers flexibility for the AM policy to be
developed in a manner that is commensurate for the organization, and identifies the AM policy as the
"framework for developing the AM objectives." The general requirements are that the AIVI policy shall be
consistent with the corporate plan and relevant corporate policies. Additionally, the AM policy shall be
documented, communicated, made readily available, and periodically reviewed.18
ISO 55002 guidance on the AM policy is that the policy should contain statements that convey the AM
principles, commitment, and expectations for decisions and activities and culture relative to AIVI.19
To provide assurance that the AM policy communicates the importance of AM and begins developing the
path to a consistent approach to AM,Figure 7: Asset Management Policy Framework identifies inputs
that should be considered when developing the AM policy framework.

17 International Standards Organization ISO 55000:2014(E)Asset Management — Overview, principles and

terminology, subsection [Link]
18 International Standard ISO 55001: 2014(E)Asset Management-Management Systems — Requirements, subsection
5.2
19 International Standard ISO 55002:2104(E) — Asset Management-Management Systems — Guidelines for the
application ofISO 55001, subsection 5.2
Asset Management:Beyond 2020 Page 20
Facilities September 2020

AM Commi men
Statement

( Asset
Scope/Portfolio
ExpectaCions
AM Vision &
Mission
)
Statements

\\*\

Risk Management)
Expectations

Resource
PME &51
Management
Expectations

Planning &
Execution
Expectations

Figure 7: Asset Management Policy Framework

6.2.2 Strategic AM Plan

ISO 55000 indicates that the SAIVIP should convey how the AIVI principles will be implemented to meet
organizational and subsequently AM objectives. Additionally, the "SAMP should be used to guide the
setting of its AM objectives, and describe the role of the AMS in meeting these objectives." So as not to
confuse the roles of the AM policy and SAMP relative to the development ofthe AM objectives, the AM
policy defines the considerations for "what AM objectives to develop" and the SAMP defines "how to
fulfilr the AM objectives. The SAMP is also used "to guide its AMS in the development of its asset
management plans(AMPs)."2°
ISO 55001 places responsibility with leadership for assuring that a SAMP is established and aligned with
the AM policy, AM objectives, and AMPs.21
ISO 55002 guidance on the SAMP is that they should explain the relationship between organizational and
AM objectives and reiterate that these objectives should be aligned. The SAMP should document the AM
objectives and define the framework for achieving the objectives to include the organizational structure,
roles and responsibilities, and resources. The SAMP should incorporate stakeholder's expectations and
requirements, document the decision-making criteria, and be used for the development of AMPs.22 Figure
8: SAMP Framework identifies inputs that should be considered when developing the SAMP framework.

20 International Standards Organization ISO 55000:2014(E)Asset Management — Overview, principles and

terminology, subsection [Link]

21 International Standard ISO 55001: 2014(E) Asset Management — Management Systems — Requirements,

subsection 5.1 and subsection 6.2.2

22 International Standard ISO 55002:2104(E) — Asset Management — Management Systems — Guidelines for the

application ofISO 55001, subsections [Link] and [Link]

Asset Management:Beyond 2020 Page 21
Facilities September 2020

( DOE/NNSA) AM
Related Plans

( AM Decision-
Making Principle) ( fDOE/NNSA AM)
Related Directives

AM Strategi.
r Sandia
(Corporatestrategic)
Plan

(AM Policy
)

AM Organization
)11 Mission
)
and R&R Requirements

Figure 8:SAMP Framework

6.2.3 AM Objectives

ISO 55000 says very little on AM objectives other than that they are needed to articulate a particular
outcome or "result to be achieved" and that the AM objectives should be aligned with AM policy and the
SAMP.23
ISO 55001 provides prescriptive requirements to manage the objectives but does not delineate the make-
up of the AM objectives. The requirement to align the AM objectives with organization objectives AM
policy and SAIVIP is reiterated. ISO 55001 also indicates that AM objectives' performance shall be
measurable, monitored, reviewed, and communicated.24
ISO 55002 guidance on AM objectives is that they be SMART (specific, measurable, achievable,
realistic, and time-bound) and that the objectives should be linked with the AMPs. Additional guidance is
that the AM objectives should consider asset risks and "importance of assets related to their intended
outcomes"(i.e., asset criticality).25

23 International Standards Organization ISO 55000:2014(E)Asset Management - Overview, principles and

terminology, Section 3-Terms and definitions, subsection 3.1.12
24 International Standard ISO 55001: 2014(E) Asset Management-Management Systems-Requirements, subsection
6.2.1
25 International Standard ISO 55002:2104(E) — Asset Management-Management Systems-Guidelines for the
application ofISO 55001, subsections [Link] and [Link]
Asset Management:Beyond 2020 Page 22
Facilities September 2020

To assure that the AM objectives are aligned with Sandia's Corporate Strategic Plan & Objectives,
Figure 9: Asset Management Objectives Framework, identifies inputs that should be considered when
developing the AM objectives.

Corporate
Objectives

Continuous Organizational
improvement Objectives

( Performance
Monitoring &
Evaluation
b ective

AM Policy

4k
Mission/Stakeholder
Requirements

Figure 9:Asset Management Objectives Framework

6.2.4 AM Strategies

ISO 55000, 55001, and 55002 are all but silent on the requirement for or the development of AM
strategies. However, AM strategies provide guidance on how to achieve the AM objectives and are
necessary to drive a common approach to [Link] AIVI strategies provide approaches to drive what AM
activities (i.e., planning and execution) are necessary to successfully achieve the AM objectives and
ultimately the corporate AM objectives. To assure a common approach to AIVI, Figure 10: Asset
Management Strategies Framework identifies strategies that promulgate a structured approach to AM.

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Facilities September 2020

r
( Resource

r
( Continuous
Improvement
Management
Strategy
.._.
IsAanagement
Strategy
Asset .-
Information
Management
Strategy

Performance
Strategic
Monitoring & AM
Planning
Evaluation Strategies
Strategy

(R isk Lifecycle
: sset
(Management)
Strategy

(
Capabilities
Demand
Strategy
Management
S
)

Figure 10: Asset Management Strategies Framework

6.2.5 Lifecycle Asset Management

ISO 55000, 55001, and 55002 are silent on the framework for LCAM. However,throughout these
documents, there are many references indicating that managing assets throughout their lifecycle phases is
required. The most common description for the lifecycle phases of physical assets are planning,
acquisition, sustainment, and disposition. The planning and acquisition phases are often combined into
the planning phase. The acquisition phase is often separated into construction and commissioning phases.
Additionally, the sustainment phase is often separated into operations and maintenance phases.
DOE 430.1C identifies asset lifecycle phases as planning a ndbudgeting, acquisition, sustainment, and
disposition. The Contracts Requirements Document in the NNSA 430.1 Supplemental Directive lists the
asset lifecycle phases as planning, maintenance and modernization, and disposition. Additionally, the
NNSA Real Property Asset Management(RPAM)Guide identifies the asset lifecycle phases as
acquisition, sustainment, and disposition. Regardless of the definition chosen for asset lifecycle phases,
managing an asset using the cradle to grave concept is inclusive of all the lifecycle phases. For the
purpose of the AM architecture, asset lifecycle phases will consist ofthe planning (cradle), sustainment
(maturity), and disposition (grave).

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Facilities September 2020

The overarching LCAM activities inherent in the asset lifecycle phases include planning and execution,
performance monitoring and evaluation, and continuous improvement. Figure 11: Lifecycle Asset
Management Framework shows the relationship between asset lifecycle phases and LCAM.

LCAM
Continuous LCAM Planning
Improvement

LCAM
Performance LCAM
Monitoring & Execution
Evaluation
Disposition Sustainment

Figure 11:Lifecycle Asset Management Framework

[Link] LCAM Planning

LCAM planning is an AM activity necessary to ensure new assets are acquired to meet mission
requirements, existing assets are managed to minimize lifecycle cost while maximizing the asset's value,
and assets are properly dispositioned in a timely manner LCAM planning focuses on the requirements for
the assets, the assets' purpose, the timeframe the assets are needed, the assets' abilities, condition of
existing assets, sustaining the assets, and disposition ofthe assets. The outputs from the LCAM planning
efforts are executable AMPs specifically Area AMPs(Area Plans) and Lifecycle AMPs or LCAMPs. The
Area Plans and LCAMPs are integrated (linked) working documents.
The Area Plans are considered strategic plans that focus on infrastructure capabilities needed to meet
mission requirements. Area Plans define the "what needs to be done and when it needs to be done for
acquiring new and disposing of existing major assets, and modernizing, recapitalizing, and rebuilding
major assets. Area Plans are coordinated with NA-50. LCAMPs are generally considered tactical and
operational plans but can have a strategic component as well. As with Area Plans, the primary focus of
LCAMPs is to address the "what needs to be done and when it needs to be done of sustainment efforts.
LCAMPs also have a role with the planning and disposition asset lifecycle phases but are more to ensure
that the existing assets' purposes are sustained for a time horizon aligned with the mission need. The
LCAMP's scope is the LCAM of existing infrastructure and building system assets with the goal of

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Facilities September 2020

sustaining the assets' capability, availability, and reliability throughout their useful lives. Figure 12:
LCAM Planning Framework shows the LCAM planning activities necessary for the development and
execution ofthe Area Plans as well as LCAMPs.

(•SAMP •Functiona l Assessment:

\
•AM Objectives •Condition Assessments
•AM Strategies •Capability Assessments
•Asset Portfolio •Ca pacity Assessments
•LCAM Execution Outputs •Demand Assessments
•Utilization Assessments
•Forecasting Assessments
•Risk/Criticality Assessments
•Reliability Assessments
*investment Assessments
Planning Planning
inputs Assessments

LCAM
Planning

lanning Project
utputs Planning

*Area Plans •Project Scoping

•LCAMPs *Analysis of Alternatives
•Sustainment Plans *Value Engineering
•Maintenance •Project Validation
•Rebuild •Investment Planning
•Recapitalization •Consolidation of Investments
•Modernization Plans

Figure 12:LCAM Planning Framework

[Link] LCAM Execution

LCAM execution responsibility resides within several depat ments within Center 4700, most
predominately the Maintenance Services Departments (electrical, mechanical, and structural) and the
Project & Construction Management Services Departments. The success ofLCAM requires crosscutting
integration between Facilities on multiple levels. The interrelationship and interdependencies are worth
noting.
Sustainment and modernization plans from Center 4850 Site Planning & Engineering efforts are inputs to
Center 4700's Project & Construction Management Departments, which then execute the projects. Group
4850's Reliability-Centered Maintenance and LCAMP efforts directly affect the Maintenance Services
Departments for modification and execution of maintenance activities. An aspect ofLCAM execution is
implementing the inputs from several different entities within the LCAM planning activity. Outputs from
the LCAM execution provide feedback into the LCAM planning activity. However,feedback rarely
occurs prior to execution completion. The feedback loop should explicitly exist in the LCAMP at all
phases of execution back to Center 4800 entities for LCAM to be successful.
Since the outputs of the LCAM planning activity only specify "what needs to be done" and "when it
needs to be done," the "how it needs to be done relative to implementing Center 4800 planning inputs
rests with Center 4700. Although project managers and maintenance personnel have a certain depth of
Asset Management:Beyond 2020 Page 26
Facilities September 2020

knowledge concerning Sandia's assets, a formalized asset ownership (a predominately missing link)
model needs to exist within Facilities. The "how it needs to be done of sustainment is as, if not more,
important than planning the "what."
LCAM planning and execution must be a collaborative and integrated effort within Facilities to ensure
that the effectiveness and efficiency of LCAM is optimized. LCAM planning and execution must work in
concert with the LCAM performance monitoring and evaluation to provide assurance that the AM
objectives are achieved. Moreover,if AM objectives are not being achieved, LCAM planning and
execution must work collectively to determine the underlying causal factor(s) and identify LCAM
planning and/or execution improvement opportunities. Therefore, LCAM planning and execution are
overlapping activities and must be performed in coordination with rather than in isolation from one
another. Figure 13: LCAM Execution Framework shows the LCAM execution activities necessary to
achieve the AM objectives and to contribute to the continual improvement of the LCAM planning
activities.

i:Facility Control System *Facility Control System

•LCAMPs(Systems Engineering) •Energy Management

/to
•Reliability-Centered Maintenance •Data Management System
•Failure Rate Analysis •Condition Assessment Surveys
•Original Equipment Manufacturer •Execution Feedback
Recommendations
•Sustainment Plans
•Modernization Plans
•Operations Engineering
•Execution Feedback Execution
Operations
Inputs

t LCAM
Execution

Execution
Sustainment
Outputs

•Asset Information •Work Planning & Scheduling

•Downtime, Failures, etc.
•Condition Information/Rating
•CMMS Data Integrity
*Execution Feedback *•0 •Work Execution & Close-Out
•Root Cause Failure Analysis
•Execution Feedback

Figure 13:LCAM Execution Framework

[Link] LCAM Performance Monitoring & Evaluation

ISO 55000 indicates that assets and the AMS should be continuously evaluated to determine if AM
objectives are being fulfilled in an effective and efficient manner 26

26 International Standards Organization ISO 55000:2014(E)Asset Management — Overview, principles and

terminology, subsection [Link]

Asset Management:Beyond 2020 Page 27
Facilities September 2020

ISO 55001 requires a method be developed to determine what to monitor, how to monitor, when to
monitor, and that monitoring data be evaluated to manage risk and identify opportunities for
improvement.27
ISO 55002 guidance recommends that a process be developed to regularly conduct performance
monitoring and evaluation to ascertain the performance of the AMS,AM,and assets. The results ofthe
analysis should be used to manage risk and continually improve the performance of the AMS,AM,and
assets.28 Figure 14: LCAM Performance Monitoring and Evaluation Framework identifies the inputs to
PME.

,0011111110..

Physical Condition
(Human Senses -
\0146.
Obseable)
ry

Maintenance
Information Systems Expertise
(Information-Based)
(Knowledge-Based)

\kin

LCAM
Performance
Monitoring &
Evaluation Asset Health
Reliability
Monitoring(AHM)&
Engineering
Data Analytics
(Engineering-Based)
(Technology-Based)

Equiprnent/Machine
Learning Asset Life
(Design/Operating
\(Artificial Intelligence- Context-Based)
Based)

‘1141ill

Figure 14:LCAM Performance Monitoring and Evaluation Framework

[Link] LCAM Continuous Improvement

ISO 55000 provides little information on CI other than to indicate that it applies to assets, AM,and the
AMS,and that improvements can be identified through the PME process and evaluation of non-
conformities.29
ISO 55001 requires that corrective and preventive action processes be in place to mitigate the
consequences of non-conformities and to prevent the recurrence. These processes should evaluate the
non-conformity to determine its cause and identify improvement opportunities to prevent recurrence.
Additionally, established processes shall "proactively identify potential failures in asset performance..."30

27 International Standard ISO 55001: 2014(E) Asset Management — Management Systems — Requirements,
subsection 9.1
28 International Standard ISO 55002:2104(E) — Asset Management — Management Systems — Guidelines for the
application ofISO 55001, subsections 9.1.1 and 9.1.2
29 International Standards Organization ISO 55000:2014(E)Asset Management — Overview, principles and
terminology, subsection [Link]
30 International Standard ISO 55001: 2014(E)Asset Management-Management Systems — Requirements,
subsections 10.1 and 10.2
Asset Management:Beyond 2020 Page 28
Facilities September 2020

ISO 55002 indicates that continuous improvement should be included in AM objectives and be a top-
down and/or bottom-up iterative process aimed at assuring that objectives will be achieved.31
Figure 15: LCAM Continuous Improvement(CI)Framework identifies the inputs to CI.

AM Policy

Performance
Monitoring &
Quality Policy
Evaluation
(PME)

KPIs/Metrics/
SIPOC
Measures

Internal
Independent
Assessments

Figure 15:LCAM Continuous Imp►^ovement Framework

7.0 Asset Management: Beyond 2020 - Asset Management

Recommendations
Efforts up to this point have focused on bridging the ISO 55001 AMS gaps. Equally important to the
AMS are AM activities that are essential to achieve the AM objectives. Below are four recommendations
supporting AM activities that should be developed and implemented. AM policy, SAMP,AM objectives,
and AM strategies shall serve as guidance in developing these recommendations to assure AIVI objectives
are achieved and to continue with the journey to LCAM excellence. Facilities' Group and Department
leadership should prioritize the importance and need ofthese AM activities and identify resources to
implement the recommendations. These recommendations and their purpose include:
1. Collaborate with Sandia line organizations to develop a corporate-wide AM approach.
2. Develop and implement an Asset Data Quality Assurance Program to ensure asset data fidelity.
3. Develop and implement an Asset Criticality Identification Program to promulgate a risk-based
AM approach.

31 International Standard ISO 55002:2104(E) — Asset Management-Management Systems — Guidelines for the
application ofISO 55001, subsections 9.3.1, 10.3.1 and 10.3.2
Asset Management:Beyond 2020 Page 29
Facilities September 2020

4. Develop and implement an Asset Health Monitoring(AHM)strategy centered around integrated

technologies and data analytics to support data-driven decision making.

Asset Management:Beyond 2020 Page 1

Facilities September 2020

Appendix A: Abreviations/Acronyms and Definitions

Abbreviation/Acronyms Definition
AHM Asset Health Monitoring
ALD Associate Laboratory Director
AM Asset Management
AMA Asset Management Architecture
AMO Asset Management Objectives
AMP Asset Management Plan
AMS Asset Management System
Area AMP = Area Plan Area Asset Management Plan
BUILDER BUILDER Sustainment Management System
CI Continuous Improvement
D4K Division 4000
DM Deferred Maintenance
DOE Department of Energy
ES&H Environment, Safety, and Health
ESS&H Environment, Safety, Security and Health
FCI Facility Condition Index
FCS Facilities Control System
FIMS Facilities Information Management System
IAM Institute of Asset Management
ISO International Standards Organization
KPI Key Performance Indicator
LCAM Lifecycle Asset Management
LCAMP Lifecycle Asset Management Plan
NNSA National Nuclear Security Administration
P&P Partnership & Planning
PM Preventive Maintenance
PME Performance Monitoring and Evaluation
QMS Quality Management System
RCM Reliability-Centered Maintenance
RAMP Real Property Asset Management
SAMP Strategic Asset Management Plan
SD Supplemental Directive
SIPOC Suppliers, Inputs, Process, Outputs, Customers
SMART Specific, Measurable, Achievable, Realistic, and Time-
bound
SME Subject Matter Expert
SNL-CA Sandia National Laboratories-California
SNL-NM Sandia National Laboratories-New Mexico

Asset Management:Beyond 2020 Page A-1