Structured Replacement Policies for Components with Complex Degradation Processes and Dedicated Sensors

  • Authors:
  • Alaa H. Elwany;Nagi Z. Gebraeel;Lisa M. Maillart

  • Affiliations:
  • Department of Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands;H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332;Department of Industrial Engineering, University of Pittsburgh, Pittsburgh, Pennsylvania 15260

  • Venue:
  • Operations Research
  • Year:
  • 2011

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Abstract

Failure of many engineering systems usually results from a gradual and irreversible accumulation of damage, a degradation process. Most degradation processes can be monitored using sensor technology. The resulting degradation signals are usually correlated with the degradation process. A system is considered to have failed once its degradation signal reaches a prespecified failure threshold. This paper considers a replacement problem for components whose degradation process can be monitored using dedicated sensors. First, we present a stochastic degradation modeling framework that characterizes, in real time, the path of a component's degradation signal. These signals are used to predict the evolution of the component's degradation state. Next, we formulate a single-unit replacement problem as a Markov decision process and utilize the real-time signal observations to determine a replacement policy. We focus on exponentially increasing degradation signals and show that the optimal replacement policy for this class of problems is a monotonically nondecreasing control limit policy. Finally, the model is used to determine an optimal replacement policy by utilizing vibration-based degradation signals from a rotating machinery application.