Joint optimization of monitoring quality and replacement decisions in condition-based maintenance

•Consider joint optimization of imperfect inspection and replacement decisions•Discretely formulate a continuous degradation process and observations•Propose an integrated quality-cost based imperfect inspection model•Develop a cost model integrating both inspection and maintenance•Compare the performance of different maintenance and inspections policies The quality of condition monitoring is an important factor affecting the effectiveness of a condition-based maintenance program. It depends closely on implemented inspection and instrument technologies, and eventually on investment costs, i.e., a more accurate condition monitoring information requires a more sophisticated inspection, hence a higher cost. While numerous works in the literature have considered problems related to condition monitoring quality, (e.g., imperfect inspection models, detection and localization techniques, etc.) few of them focus on adjusting condition monitoring quality for condition-based maintenance optimization. In this paper, we investigate how such an adjustment can help to reduce the total cost of a condition-based maintenance program. The condition monitoring quality is characterized by the observation noises on the system degradation level returned by an inspection. A dynamic condition-based maintenance and inspection policy adapted to such a observation information is proposed and formulated based on Partially Observable Markov Decision Processes. The use and advantages of the proposed joint inspection and maintenance model are numerically discussed and compared to several inspection-maintenance policies through numerical examples.