Strategic Assets Life-cycle Value Optimization
THE SALVO PROJECT
The SALVO Project was a 4-year, multi-industry R&D programme which developed innovative approaches to decision-making about the management of aging physical assets. This included determination of the optimal expenditure and timings for equipment replacement plus life extension, modification, refurbishment and disposal options and their optimal timing. In particular, it was to join up the disciplines of what data is worth collecting in the first place, how it should be used, which assets warrant attention on what timescales of urgency and criticality, and how to evaluate the different intervention options on a common cost/benefit/risk basis. For more information go to www.SALVOproject.org.
The SALVO Project incorporated appropriate elements of best practices for asset management decision-making developed within the European MACRO Project. The MACRO Project was a 5-year, $2.5 Million R&D programme exploring and developing best practice in risk-based industrial decision-making. Leading European companies from many sectors collaborated to find and share the best methods for setting asset management strategies, particularly when hard data is limited or unavailable.
“you can evidence the decisions you make using the output of SALVO, and that evidence not only helps you to justify your decisions but also audit the results” Keith Hamer (VP Engineering & Asset Management, Sodexo)
THE SALVO PROCESS
The SALVO Process is a 6-step ‘Smiley’ (see diagram below) that leads us through the top-down stages of focusing on the right problems to solve, identifying what can be done (including ‘lateral thinking’ options that may not involve a technical intervention), and the quantified cost/benefits/risk evaluation of the different options. The Smiley guides us upwards in combining the most worthwhile activities into the optimal total programme, which can be presented to stakeholders with full justification, ‘what-if?’ flexibility and quantified value.
The SALVO Process | 6-Step Smiley
The results from the project comprise a combination of public domain guidance (including the guidebook), case studies, detailed procedures and templates (a technical ‘Playbook’), and decision-support software tools (DST). The Playbook and DST software tools (DST ASSET STRATEGY EVALUATOR suite) are now available under commercial license, along with a full range of training courses and an international network of expert facilitators.
Asset management decision-making | The SALVO Process
The SALVO guidebook, Asset management decision-making: The SALVO Process written by John Woodhouse, explains what it takes to make the right decisions in the management of assets, not just in the steps and disciplines required, but also how to create a clear ‘business case’ to justify and communicate the outcomes so that everyone can agree on what is worth doing, when and why.
The cost of each book is £29.50 plus post and packing.