Change is like lightning then thunder. If we see the lightning and hear the thunder we have time to react. Most people in the orthopedic professionals agree that the industry is in for some major changes, which are being driven by better patient outcome, industry consolidation and pricing pressures.

lighting

In adapting to these shifts preparation is key. We can learn from other industries — airline, automotive, banking — that experienced major changes in recent decades and saw the lightning strike but did not react to the thunder. Take the automotive industry. It had ISO 9000 to control manufacturing. It had ISO 16946 to control quality. It had managers and bankers looking over its shoulder. What could go wrong?

They weren’t using a “Unified plan to manage day to day financial success”. Industry managers around the world had plans.   Banks had plans. Employees were implementing these plans.  Everyone got up in the morning, turned the key, hit the gas and went. The problem was everyone was using different cars and different road maps.  Coming up with a unified plan that works an industry with complex goals, banking systems, work standards and multilingual challenges is not easy. However it is essential.

What do all companies have in common?   They need to bring value to their customers.  If they are successful, this will add value to their own company.   Managing risk and opportunity is the best way to bring value to your company.  Value can be measured by how well you handle your assets, whether physical, financial or human.   It is critical to develop a “Unified plan to manage your day to day financial success”

Where can we find such a plan that will lead to cost reductions that add directly to the bottom line?

The answer is the set of ISO standards released January 15, 2014 ISO 55000, 1 and 2 for asset management.   They consist of three components;

  • The Why – ISO 55000 Overview, Principles and Terminology.
  • The What – ISO 55001 Management Systems – Requirements.
  • The How – ISO 55002   Management Systems – Guidelines on the Application of ISO 55001.

ISO 55000 evolved from PAS (Publicly Available Specification) 55 and offers CEO’s, CFO’s and operating managers a unified plan to manage success on the asset side of the business model, similar to the ISO 9001 and ISO 13485 standards on the manufacturing side. Asset management with ISO 55000 allows companies to fund a fully developed plan that will create cost reductions that fall directly to the bottom line.

Assets touch many benchmarks: banking systems, work standards and multi lingual boundaries.

Managing assets can bring a “Unified plan to manage day to day financial success”.

ISO 9001 and ISO 13485 are on the manufacturing side of the business model. ISO 55000 is similar but on the asset side of the business model.   Asset management with ISO 55000 will create cost reductions that can fall directly to the bottom line.

These direct cost reductions will fund the full development of the long term cost savings to develop the “Unified Plan to Manage day to day Financial Success”.

Countries that are full participants in ISO 55000: Argentina, Australia, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Ireland, Italy, Japan, North Korea, Mexico, the Netherlands, Peru, Portugal, South Africa. Spain, Sweden, Switzerland, USA, United Arab Emirates and United Kingdom   Observer status: Armenia, Austria, Belgium, Hong Kong, Iraq, Israel, Malaysia, Morocco, New Zealand, Norway, Slovakia and Thailand

Now, let’s go back to the coming storm.   Think of this discussion like the raindrops that precede the storm. First the forward thinkers and those that want to get ahead of the competition will be reviewing. A few early adopters will start. Then the followers will start pouring in. The storm is building.   Don’t get caught in the downpour.

running

To discuss a “Unified plan to manage day to day financial success” contact:

Randy.Rapin@RLTLive.com   937-477-8604
www.RLTIndustries.com
www.RLTGold.com
www.linkedin.com/in/RandyDayton

Content republished with permission from ORTHOWORLD, a highly specialized publishing firm serving the global orthopedic market. www.orthoworld.com

RLTGold 2014, Volume 102B updated 20150202

Randy W. Rapin
About Randy W. Rapin

Randy W. Rapin has worked in design and process manufacturability since 1965. He founded www.RLTIndustries.com in Dayton Ohio in 1995. RLT Industries offers design and process manufacturability services to the orthopedic and automotive industry. He has extensive experience in metal, plastics and rubber component design. Originally from Detroit, Michigan he worked in the design and fabrication of automotive parts. He now offers bio-mechanical design and engineering support to the orthopedic industry. His current focus is on spinal implants. RLTGold (a division of RLT Industries) opened in 2015.