The SALVO Process (Strategic Assets: Lifecycle Value Optimization) is a comprehensive method for better decision-making in asset management. It is a unique combination of structured navigational guidance,data and expert knowledge capture, human psychology and analytical 'what if?' techniques to ensure that the best value decision is made,with clear audit trail to demonstrate why it is correct.
The SALVO Process can be used for any asset management decision such as evaluating a capital investment, optimising a maintenance or inspection interval, deciding what spares to hold, when to replace an aging or obsolete asset and over 40 other typical decision types in the management of physical assets.
SALVO is the product of a multi-sector collaboration programme over 4 years. It started by addressing the problems of managing aging assets but extended into the more generic challenges of decision-making with poor data, how to quantify 'intangibles' and how to make the right decisions in different phases of the life cycle.
"The management of aging assets will require vast amounts of investment globally to ensure they continue to meet the ever complex demands of society. It has never been more important to prioritise and justify how these scarce financial resources are invested and when.
The SALVO project is an influential piece of research; it goes beyond the theoretical by also developing practical methods for ensuring optimal investment and intervention plans. One of the significant and important features is that it has been developed with, and field tested by, some of the world’s leading practitioners and organisations.
This is an important piece of work that should be part of every asset manager’s and infrastructure investor’s tool kit. SALVO is a significant contribution to the development of the asset management discipline and body of knowledge."
Stephen Morris, President, Institute of Asset Management, 2014
Click on the image below for SALVOintroductory video (10 minutes):
SALVO has delivered practical methods and solutions to:
Identify and demonstrate the optimal timing for asset replacement
Evaluate optimal inspection, maintenance and refurbishment intervals
Establish decision-making disciplines & force the right questions to be asked
Identify decision-specific data needs and how to use the data correctly
Capture and quantify 'tacit’ knowledge, experience and expertise
Forecast expenditure, risk profiles and resource requirements based on clear business case justification
Evaluate instantly the cost/risk/performance impact of deferring actions or reprioritizing activities
The total process and individual components of SALVO are now available commercially under license (see www.decisionsupporttools.com) and are already being used successfully in many industries.