RAV
Maintenance
RAV (Replacement Asset Value)
Replacement Asset Value
Estimated cost to replace an asset or facility with equivalent new capability, often used to normalize maintenance cost.
Examples
- 01The RAV of the plant's equipment is EUR 80 million, the cost to replace it with new equipment of the same capability.
- 02Management uses RAV to compare maintenance spending between a small and a large plant, which would be misleading in absolute EUR.
- 03When a new line is installed, RAV is updated so maintenance benchmarks stay correct.