The monetary value that would be required to replace the production capability of the present assets in the plant. Includes production or process equipment, as well as utilities, support, and related assets. It should not be based on the insured value or depreciated value of the assets. It includes the replacement value of the buildings and the grounds if these assets are maintainted by the maintenance expenditures. It does not include value of real esate - only improvements. Synonymous with estimated replacement value (ERV).

Tip excerpted from The Professional's Guide To Maintenance And Reliability