This development idea is to allow settlers to break down parts, equipment, vehicles, and perhaps even buildings back into the parts and resources used to manufacture/construct them. Salvaging wouldn't be lossless and the amount of useful resources and parts recovered would be randomly determined based on the person's material science skill and how worn down the salvageable item is. Salvaging (for non-buildings) would require a manufacturing workshop and require the same work time, effort, skill, and workshop tech level as the comparable manufacturing process does.
The reason a person would choose to salvage something is if the value of the estimated recovered parts and resources is worth more to the settlement than the salvageable item. Salvageable items with a lot of wear would be worth less than a new item and there might be a point where its value is so low it makes sense just to salvage it.
Feel free to add more ideas to this page or add to its discussion.