Asset
Management
Policy
January 2018
Introduction
Our Asset Management Policy was last published in 2014. It is being
updated to reflect our commitment to regularly review and improve
all of our Asset Management documentation. It should therefore
be considered in context with other asset management documents
including the latest version of the Asset Management System
handbook.
We have made continued progress in our asset management capability
since 2014. Benchmarked comparisons show we have consolidated our
position as an example of best practice amongst European railways and
UK utilities in our strategic planning. Emerging best practice is evident
in the areas of competency, asset management planning and life cycle
costing analysis. Work continues on improving our asset information,
our approaches to sustainable development and adapting to climate
change, and furthering the analysis to move towards eliminate, predict
and prevent maintenance routines. Embedding the progress and
creating an asset management focused culture is vital, if we are to
continue to realise further benefits.
This document supports devolution within Network Rail, in particular
the transfer of accountability for implementing an effective Asset
Management System from the central organisation, to the Route
Businesses. This is a fundamental requirement as the Route Businesses
commit to align their asset management activities with ISO55001.
Purpose
This Asset Management Policy defines the key principles and
requirements which we will apply to the assets. Through this we will
make sure that the assets are managed in a way that contributes
towards a better railway by delivering the outputs expected safely,
sustainably, and efficiently.
The policy plays a key role in creating an overall ‘Line of Sight’ between
our asset interventions and the overall Network Rail objectives.
Specifically, it provides the Asset Management Framework and the
document hierarchy used to disseminate our overall output and funding
specification into both an effective asset management plan, and the
associated interventions on the assets.
Good practice alignment
This document has been developed based on good practice guidance
from internationally recognised sources. It has been developed to
comply with the requirements of the ISO55000 series of standards.
The extent of the discipline of asset management has been defined
to adopt the 39 subjects within the Asset Management Landscape
developed by the Global Forum for Maintenance and Asset
Management (GFMAM) and the Institute of Asset Management (IAM).
Asset management definition and aim
We have adopted the definition of asset management as included in the international suite of standards, BS ISO
55000 series (2014):
The coordinated activity of an organisation to realise value from physical assets
Asset management is therefore about aligning the way we manage our assets with our corporate objectives. In
the case of Network Rail our principle aim is the delivery of our outputs in a safe and sustainable way, balancing
life cycle costing with initial affordability. Our decision making always considers whole system and lifecycle
costs and is subject to continual refinement from our experience. We recognise that improvements from asset
management arise through long term concerted effort.
Our aim is to meet our obligations in a manner that is demonstrably world class, with capabilities appropriately
matched with the needs of ourselves and our industry partners. We recognise that the principles of the discipline
of asset management will help us deliver these. This policy defines how we will develop our overall approach to
asset management.
We have set targets to guide our work:
• By April 2019 we will provide a benchmark against which organisations throughout the world
assess their own asset management capabilities and will hold high quality asset information,
readily available and system wide to support the operation of the network.
• By 2024 we intend to extend our use of asset management to achieve industry-wide systems
and processes.
Network Rail’s vision is to be a trusted leader in the rail industry. Asset management underpins our ability to
realise our key purpose to generate outstanding value for taxpayers and customers. It is also fundamental in
enabling the delivery of our longer term vision for the railway.
Our purpose
To generate outstanding value for taxpayers and customers
(Why we exist)
Our role
A better railway for a better Britain
(What we do)
Our vision
To be a trusted leader in the rail industry
(What we want to do)
Our strategy To work with our partners and use our full potential to improve safety,
(How we’re going to do it) reliability, capacity and value for customers and tax payers
Our behaviours Customer
Accountable Challenging Collaborative
(How we need to work) driven
To support the wider Purpose, Role and Vision, Network Rail has also published a transformational plan, known
internally as the 5Cs. These are organisational characteristics designed to aid the transformation of Network Rail
into a public sector body that behaves like a private sector business. To achieve this aim, asset management needs
to support this transformation to make sure we as a business:
• Achieve a relentless Customer focus
• Ensure we are Cost competitive and efficient
• Become more Commercial, to attract third party investment
• Instill a Culture that embraces diversity, continuous improvement, efficiency and safety
• Find solutions to the biggest problem facing the railways, ‘the lack of Capacity to meet growing
passenger demand’
Scope
The framework we use to define the scope of activities has drawn heavily from the ISO 55000 guidance, as
covered by this policy is shown in Figure 3:
Figure 3, Network Rail’s Asset Management Framework
This policy applies to all assets that constitute the operational railway, including those associated with:
• track
• signalling
• civils (structures and earthworks)
• buildings (stations and depots)
• electrical power
• drainage
• telecommunications
• and mobile plant fleet1
It does not cover non-operational assets such as offices, road fleet or IT equipment.
It also applies to all asset-related activities including inspection, maintenance and renewal of existing assets,
design and installation of new assets to enhance the capability and reliability of the network, and the asset
data requirements associated with these activities. Finally, the scope of asset management includes relevant
infrastructure activities such as capacity planning, and railway operational control and timetabling.
The policy applies to all Network Rail personnel involved in asset management activities, and all relevant suppliers
of services.
1
Asset managed nationally by Route Services. All policy statements and principles apply, and are supported by the equivalent strategic and
asset management plans.
Corporate outputs are determined as part of the periodic review process. Specific asset condition, capability and
route reliability targets, funding and output measures are included in the individual Route Strategic Plans.
The Asset Management Policy, its relationship with other key documents and processes, and key questions/
outcomes at each stage are shown in table 1:
Key
Framework Accountable
Key questions Outcome supporting
stage business unit
documents
Plan 1 - Organisational What do we want to achieve? Establishing the right objectives Executive Strategic
Strategy and Why are we trying to achieve it? and how these relate to specific Committee Business Plan
Objectives What is our funding availability? routes
2 - Corporate What protocols have we established The principles and mandated STE Asset
policies from experience and future foresight? requirements applicable to our Management
asset management system Policy
3 - Rules and Which asset interventions deliver the Best practice advice to guide STE Discipline-
standards required performance at lowest whole asset management planning specific Asset
lifecycle cost? Policies
4 - Route Strategic What do we need to do in outline? The medium term funding and Route Business Route
Plan What funding do we need? overall activity levels required to Strategic Plan
What outputs should we expect? achieve the objectives
What capability do we need to
achieve it?
5 - Annual delivery What assets? What condition is it in? Specific activity and project Route Business Route Asset
plan What do we need it to do and when? plans over 1, 3 and 5 years Management
How much will it cost? Plan
Have we got enough access to the
assets and the right resources?
Do 6 - Detailed How will we get it done? The annual work programmes Route Business
delivery schedules What is the detailed design - defined maintenance and
requirement? project plans
Have we secured resources?
7 - Execution of Is the work proceeding as planned? Delivering the annual Route Business
work Has new information varied the task? programme of work successfully
Review 8 - Performance How will we make sure we deliver the Evaluating what we are STE Business
measurement, right outputs and outcomes? achieving to derive learning Performance
analysis, How do we deal with emergencies? and support continuous Management
assurance and How will we get better? improvement Framework
improvement
Enabler Organisation What overarching skills do our Everyone understands STE Competency
i and people people need to operate the asset the boundaries of their framework
competency management system? responsibilities
management How can we configure the Individuals know what part Learning
organisation to ensure asset they play in the AMS, and they hierarchy
management objectives are delivered? deliver to a high standard
Enabler Data collation, What mechanisms do we need to Agreed approach to defining STE Asset
ii management and collate accurate, high quality data? data standards Information
sharing How can we share this in such a way Systems that work for the user, Strategy
that is both effective and efficient? both intuitively and completely
Enabler Procurement How can we ensure alignment The development of mature STE
iii and supply chain between our procurement systems capabilities and efficiencies.
management and our AMS? Transparent relationship
What do we mandate on our suppliers between supplier performance,
to better deliver against our asset and asset value.
management targets?
Enabler Expert analytics How can we better analyse complex Complex problems are fully STE Whole Life
iv system problems? analysed and solutions put Cost Manual
How can digital technology facilitate forward are relevant.
the collection to support real-time Data is collected efficiently, and
decision making? converted into information that
brings real benefit.
Table 1, Network Rail’s Asset Management Framework and its relationship with other key processes
Asset Management Policy statements
This Asset Management Policy is based on a set of policy statements aligned to corporate objectives that reflect
company role, purpose and vision;
1. We will reduce safety risks for passengers, the public and our workforce
2. Activity on our assets will be carried out in compliance with relevant legislative and statutory
requirements
3. The management of asset related risk will be undertaken in accordance with the corporate
Risk Management Policy; and controlled through Network Rail’s standards and ‘Business
Critical Rules’
4. Assets, systems and networks will be managed in accordance with sustainable development
principles including due consideration of long-term financial, societal and environmental
impacts
5. The asset management approach will be supported by the Network Rail Technology Strategy.
This defines Network Rail’s contribution to the wider Rail Technical Strategy
6. The asset management approach will be appropriate to the scale and relative importance of
the assets and asset systems to achieving the overall organisational objectives
7. We will proactively seek structured continuous improvement of our asset management
capabilities and activities and assure value for money for customers and stakeholders
Asset Management Principles
In order to deliver these policy statements, Network Rail will apply an asset management system approach,
consistent with the requirements of ISO55001 that will form part of a wider Integrated Management System for
Network Rail. The Asset Management System will encompass the following principles. We will:
1. Ensure that the safe continued operation of all assets is paramount in any decision-making
process, and that all infrastructure is managed in a safe manner and within critical limits.
2. Undertake asset management in a consistent way working to align organisational and
functional approaches to develop a truly integrated approach with a clear ‘Line of Sight’
linking activities to organisational objectives.
3. Manage our assets in a systematic way and one which is in line with the approved asset
management system. We will apply this Route, ‘asset system’ and on an individual asset
basis. This management system will adopt the control framework as defined by the Technical
Authority in Safety, Technical Engineering.
4. Strike the appropriate balance between stakeholder expectations regarding system
reliability, risk and cost which will be determined reflecting reasonable requirements
of operators and funders including regulated outputs set out in our plans and other
commitments. All critical assets will be risk assessed, and records will be kept up to date.
Additionally, any risks to operations and maintenance plans introduced as a consequence of
other intervention works will be assessed, and controlled appropriately.
5. Align all asset management interventions to the principles defined in our asset policies for
all operational assets, that set out the major requirements and decision making criteria for
the work we do to deliver the required network and route outputs for the funding available;
these policies will be continuously improved to:
• Be based on whole life, whole system costs and underpinned by appropriate facts from
enhanced asset information
• Define and have plans in place to detail and record the most appropriate approach to asset
maintenance, inspection and renewal, supported by reliability, availability, maintainability
and safety requirements
• Define a risk-based approach to determining intervention requirements to specified levels of
reliability for specified assets
• Define resilience requirements as a specified range of weather conditions, taking account of
emerging knowledge of climate change
6. Develop technology, tools and methods to support fact-based whole life cycle decisions on
maintaining, renewing and enhancing the infrastructure and improving our capability for
predicting and preventing failures. These tools will include forecasts of the outputs that
are expected as a result of the decisions, including documenting all assumptions made and
benefits anticipated.
7. Balance the trade-off between efficiency of work through longer possessions with access to
the network for the delivery of the timetable.
8. Create an environment where our asset management teams are motivated, driven
by customer needs, and proud of their work; this will be supported by investment to
professionalise our competency in asset management.
9. Develop the asset management capabilities of the organisation and our supply chain to
an appropriate level of maturity, in order to deliver efficient outcomes for customers and
stakeholders including a commitment to share best practice, on lowest first cost solutions.
10. Undertake benchmarking to establish best practice and adopt relevant findings through our
Asset Management System.
11. Provide an annual statement of the outcomes delivered through our asset management, and
how these relate to sustainable development.
Communication
Communication to relevant internal and external stakeholders, service providers and other relevant parties who
require knowledge of the Asset Management Policy is via the following mechanisms:
• Available to external stakeholders by inclusion on Network Rail’s public site
• Available to our staff through the Network Rail intranet
• Referenced and used as part of asset management training and development programmes
Implementation
The overall Asset Management Framework is defined and controlled by the Asset Management Technical
Authority, part of the Safety, Technical and Engineering (STE) Directorate under the leadership of the Safety,
Technical and Engineering Director.
The Technical Authority provides guidance on the mechanisms, accountabilities and responsibilities for how this
policy will be implemented across the entire network. It also leads on any review process, which will be undertaken
in line with established business protocols.
Accountability for the implementation of this Asset Management Policy and related documents rests at Route
Business level. The Route Businesses are accountable for implementing a specific and effective Asset Management
System, itself based on the generic Network Rail Asset Management Framework. Route Businesses are also
accountable for ‘sponsorship’ of projects to enhance or renew the railway.
Measurement of asset management capability
We will continue to measure our corporate asset management capability through the use of recognised business
excellence models. This includes wider benchmarking work with leading rail and other sector organisations
throughout the world.
Furthermore, as part of our commitment to achieving our corporate asset management and wider business
aims, we will utilise in-house expertise to assess individual routes’ asset management performance. In order to
build improvement plans and frame any structured continual improvement initiatives, the Business Performance
Management Framework will be used to derive learning and to ensure consistency of future approach.
We will develop and maintain all documents required to operate our Asset Management System adopting
standard terminology and definitions. The Asset Management System will be used to:
• Document the processes by which our asset management responsibilities are delivered
• Identify key roles and accountabilities
• Identify the mandated asset management competences required for these roles and seek to
ensure that our teams meet these capability requirements
• Identify compliance with recognised infrastructure asset management standards, including
the ISO55000 suite of documents
Continuous review and improvement
The Safety, Technical and Engineering Director will arrange for the Asset Management Policy to be reviewed with
the Network Rail Executive Committee at least once every two years, or when the committee identifies a need to
do so.
Each review will include due consideration of:
• Alignment with Network Rail Vision,
Strategic Business Plan, wider policies and
the risk management framework
• Compliance of Asset Policies with all
relevant regulations, laws and accepted
best practice
• The ‘Line of Sight’ created by the Asset
Management Policy and the Asset
Management System, verified through
appropriate assurance review
• Opportunities for improvements in format,
communication and implementation of the
Asset Management Policy itself
• The rate of progress achieved towards our
goal to provide a benchmark against which
organisations throughout the world assess
their own asset management capabilities
• Opportunities for continual improvement
within the Asset Management System
• Alignment with established best practice
guidelines, including the ISO55000 suite of
documents
Representatives appointed by the Asset
Management Technical Authority will undertake
a formal annual review of the Network Rail Asset
Management System.
Definition of terms
The following items are extracted from the ISO55000 suite of documents and have been complemented by the
specific addition of Network Rail documents.
Asset(s): Plant, machinery, property, buildings, vehicles and other items that have a distinct value to the
organisation
Asset Information Strategy: the activities Network Rail is undertaking to ensure that our definition,
collection and use of asset information meets current and future requirements
Asset management: coordinated activities of an organisation to realise value from physical assets
Asset Management Competency Framework: defines the competencies required to successfully
implement asset management
Asset management information: Meaningful data relating to assets and asset management NOTE:
Examples of asset management information include asset registers, drawings, contracts, licences, legal,
regulatory and statutory documents, policies, standards, guidance notes, technical instructions, procedures,
operating criteria, asset performance and condition data, or all asset management records
Asset Management Information System: A system for the storage, processing and transmission of asset
management information
Asset Management Objective(s):
• specific and measurable outcome or achievement required of asset system(s) in order
to implement the asset management policy and asset management strategy; and/or
• detailed and measurable level of performance or condition required of the assets;
and/or
• specific and measurable outcome or achievement required of the asset management
system
Asset management performance: measureable results of an organisations management of its
assets and /or asset system(s)
Asset Management Policy: Principles and mandated requirements derived from, and consistent with, the
organisational strategic plan, providing a framework for the development and implementation of the asset
management strategy and the setting of the asset management objectives
Asset Management Strategy: Long-term optimised approach to management of the assets, derived from,
and consistent with, the organisational strategic plan and the asset management policy, including a high
level, long-term action plan
Asset Management System: organisation’s asset management policy, asset management strategy,
asset management objectives, asset management plan(s) and the activities, processes and organisational
structures necessary for their development, effective communication, implementation and continual
improvement
Asset Policy: Specified approach, rules and boundaries that provide direction and the framework for the
control of specific asset-related processes and activities such as capital investment and maintenance
Asset portfolio: Complete range of assets and asset systems owned by an organisation
Asset system: Set of assets that interact and/or are interrelated so as to deliver a required business
function or service
Contingency plans: These confirm how we identify and respond to incidents and emergency situations,
including the maintenance of critical activities and services. These confirm competence requirements,
arrangements for communication, access to resources and means to revert to business as usual
Critical limits: A maximum and/or minimum value to which a parameter must be controlled to prevent,
eliminate or reduce the risks of an undesirable event occurring.
Critical assets: Equipment (assets) which if degraded would affect the safety, reliability and/or operability
of a specific route.
Enablers (asset management): Supportive systems, procedures, processes, activities and resources that
enable an organisation to operate its asset management system efficiently and effectively
Life cycle: Time interval that commences with the identification of the need for an asset and terminates
with the decommissioning and disposal of the asset or any associated liabilities
Maintenance strategy: A defined approach to the undertaking of maintenance including approaches to
planning, delivery, outsourcing and improvement priorities, including mechanisms to continuously improve
and acquire feedback.
Optimise: Achieve by a quantitative or qualitative method, as appropriate, the best value compromise
between conflicting factors such as performance, costs and retained risk within any non-negotiable
constraints
Organisation: Company, corporation, firm, enterprise, authority or institution, or part or combination
thereof, whether incorporated or not, public or private, that has its own functions and administration
Route Asset Management Plan: Document specifying activities and resources, responsibilities and
timescales for implementing the asset management strategy and delivering the asset management
objectives. Applicable as either a network wide plan or Route level
Route Delivery Plan: Detailed plan to optimise the delivery of renewals, maintenance and enhancement,
grouping works spatially and where complementary in form with the coordination of people, other
resources, track access and supplier capability to deliver in the most efficient and effective way
Route Strategic Plan: These define at high-level, requirements now and how these are intended to change
over 10 and 30 year timelines for capability, capacity and availability of infrastructure to deliver planned
services, aligned to the strategic business plan this incorporates chapters that form a Strategic Route Asset
Management Plan (SRAMP)
Strategic Business Plan: Overall long-term plan for Network Rail
that is derived from, and embodies, our Role, Purpose, Vision: Key
strategic programme themes, stakeholder requirements, objectives,
management of its risks and funding requirements for the 5 year
regulated control period
Sustainable: Achieving or retaining an optimum compromise between
performance, costs and risks over the life cycle, whilst avoiding adverse
long-term impacts to the organisation from short-term decisions
Sustainable development: Achieving an enduring balanced approach
between environmental responsibility, social progress and economic
aspects of activities
Technical Strategy: Identifies the technical barriers that prevent us
from achieving our corporate objectives and the R&D activities that will
allow us to overcome these. With this Strategy in place, technology will
be able to function as a key driver for our business
Related corporate documents
This Asset Management Policy should be read in conjunction with the following:
• Corporate Responsibility Report
• Diversity and Inclusion Policy
• Health and Safety Policy
• Network Rail Strategic Business Plan
• Sustainable Development Policy
• Technical Strategy
• The Network Operating Strategy
• Network Rail Transformation Plan
