What is SALVO? - TWPL

1 what is SALVO? A multi-national, multi-industry consortium of leading organisations has spent 3 years researching, developing and refining a flexible process for better asset management decision-making. The resulting techniques have been field-tested and proven to make substantial cost savings, increase transparency and consistency in critical decisions, and provide much better control of risks, planning and whole life cycle asset helps us to identify which problems are worth solving and how urgently, what tactical or strategic options should be considered, how to evaluate and optimize their timing (including quantifying their business case justification)

2 , and developing a fully optimized Strategic Asset Management Plan, in line with the requirements of ISO overall salvo process comprises 6 vital steps (see overleaf), and an extensive toolbox of recommended best practices, analysis aids, guidance and templates. The consortium has developed methods for quantifying risks and economic impact, and making better decisions even when hard data is limited or unavailable. And it has developed a flexible set of what if? evaluation tools to explore different asset management options instantly for cost/benefit and optimal processes are now available worldwide under license as a combination of:> Process guidebook (with worked examples)> Modular training courses at basic, expert and facilitator levels> Modular suite of decision-support software tools> Detailed technical playbook of step-by-step guidance> Library of case studiesImprove consistency, transparency & confidence in decision-makingSALVO has mapped decision-making processes for a wide range of decision types.

3 These define the steps needed to answer questions such as When should I replace my aging asset? or Is it worth refurbishing to extend its life? . These processes and steps for over 40 common decision types have been arranged into a storyboard approach, to make navigation simple and enable options to be compared in value-for-money Asset Strategy Evaluator software, developed by the salvo project, presents these storyboards so that all relevant influences on a decision are assembled, quantified and used for instant what if? exploration of with rough estimates and assumptions, scenarios can be explored for different intervention choices and timings, to identify the optimal strategy and the key decision drivers.

4 Constraints, alignment opportunities, intangibles and data uncertainties are all considered and quantified in their strategies and alternative scenarios can be directly compared for total business impact to find and justify the best value mix of actions, with clear evidence of why they are salvo deliversSALVO reveals big financial and risk reduction opportunities, by breaking down departmental silos, capturing knowledge, quantifying risks and intangibles, calculating the optimal time for interventions and providing a clear audit trail for strategy decisions.> Enables quantified cost/risk-based strategies and demonstrably optimized asset management plans.

5 > Identifies optimal timing for asset replacements.> Evaluates opportunities for asset life extension.> Integrates optimal inspection, maintenance and renewal strategies for whole life cycle value.> Forces the right questions to be asked.> Identifies specific asset data needs and correct usage.> Captures and quantifies tacit knowledge .> Brings together, in a structured way, technical, financial and other stakeholder interests.> Forecasts expenditure and resource requirements based on clear, risk-based business case do you determine and prove which projects, maintenance or asset replacement tasks are really worthwhile, and when?

6 Sorting the confusing data evidence and asset knowledge into two clear dimensions, ensures that the most pressing, highest value issues, rather than be distracted by short-termism or local vested interests. salvo Step 1 provides the targeting and prioritising guidance to make the best use of asset health and criticality information, and define the best way of grouping assets for shared attention and management intervention programmes to evaluateDiscrete intervention option to be evaluatedDiscrete asset-related problem or improvement opportunitySystematic review of asset needs and optimal management strategiesInputs.

7 Asset Registers, CMMS/EAM, condition/performance data, asset experts and commercial/business context Structured methods for relevant data selection, knowledge capture and data usage, templates for asset health & criticality definition, root cause analysis, FMEA and risk pattern quantification, deterioration modelling, quantifying value of intangibles and real-time testing of data sensitivities and and optimize timing of asset management optionsStoryboard capture of information for different decision types, range-estimating any uncertain cost/risk/performance trade-off for whole life cycle modules & applicabilitiesAny step-change, with level of cost/risk/ performance Before and new level After Condition monitoring and/or functional testing activitiesPeriodic planned maintenance (preventive and/or corrective)

8 Renewals, 1-off refurbishments and all total life cycle cost optionsBusiness case for the optimal decision> Proves the value of timely intervention> Quantifies the impact of delays or the wrong decision> Builds ownership in participants and commitment to the conclusions> Identifies big improvements in cost, risk, performance and sustainability> Identifies key dependencies and future information worth collectingClearer and more credible plans, supply chain aligned Outputs:Capex/Opex requirements > budgeting systemsResidual risks > ERM (risk management) systemResource requirements > HR planning and Procurement systemsDowntime reduced, productivity raised, stakeholders assuredOutputs:Optimal whole life asset management strategies > governance and stakeholder confidenceOptimal total work programme > EAM/CMMS work planning and controlOptimal shutdown cycle and strategy > Operations planning, contracting and resource planningBig reductions in costs and risks, better planningOutputs.

9 Cost/risk justified actions & timings > CMMS/EAM systemsInspections, maintenance tasks, project and asset replacements: export to CMMS and EAM systems for work scheduling and delivery management.>>Evaluate and optimize timing of discrete options- Life Cycle cost/benefit/risk- Optimal intervals/timing- Premium paid for compliance- Premium paid for shine- Cost of uncertainty>Evaluate and optimize combinations or interventions- Optimal blending- Optimal bundlingAssemble total programmeCapital investment plans, resourcing needs, risk and cost forecasts>Identity and prioritise problems/opportunities- Decision criticality- Decision urgency>Define the problemIdentify- Problem boundaries- Underlying causes- Related cases for improvement>>>>Identify potential solutions - Asset ( maintenance.)

10 Modification, renewal) and - Non-asset ( process, mitigation, insurance) >4. Asset management options are not limited to just technical interventions. salvo Step 3 forces us to think of a wider range of potential solutions, ranging from design, procurement, operations, maintenance, renewal and various mitigation strategies. It is important to identify all the viable options and evaluate them for their cost-effectiveness, risks, sustainability and optimal ASSETS: LIFE-CYCLE VALUE OPTIMIZATIONC reating a good problem definition helps to focus attention on the core issue. Root Cause Analysis (RCA) methods can help us to understand the combination of factors that need to be addressed, and solving these underlying issues might eliminate other problems as well.