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Diagnostics and prognostics have a significant role in the reliability enhancement of systems and are focused topics of active research. Engineered systems are becoming more complex and are subjected to miscellaneous failure modes that impact adversely their performability. This ever‐increasing complexity makes fault diagnostics and prognostics challenging for the system‐level functions. A significant number of successes have been achieved and acknowledged in some review papers; however, these reviews rarely focused on application to complex engineered systems nor provided a systematic review of diverse techniques and approaches to address the related challenges. To bridge the gap, this paper first presents a review to systematically cover the general concepts and recent development of various diagnostics and prognostics approaches, along with their strengths and shortcomings for the application of diverse engineered systems. Afterwards, given the characteristics of complex systems, the applicability of different techniques and methods that are capable to address the features of complex systems are reviewed and discussed, and some of the recent achievements in the literature are introduced. Finally, the unaddressed challenges are discussed by taking into account the characteristics of automotive systems as an example of complex systems. In addition, future development and potential research trends are offered to address those challenges. Consequently, this review provides a systematic view of the state‐of‐the‐art and case studies with a reference value for scholars and practitioners.

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Reliability is an important phase in durable system designs, specifically in the early phase of the product development. In this paper, a new methodology is proposed for complex systems’ design for reliability. Specific test and field failure data scarcity is evaluated here as a challenge to implement design for reliability of a new product. In the developed approach, modeling and simulation of the system are accomplished by using reliability block diagram (RBD) method. The generic data are corrected to account for the design and environment effects on the application. The integral methodology evaluates reliability of the system and assesses the importance of each component. In addition, the availability of the system was evaluated using Monte Carlo simulation. Available design alternatives with different components are analyzed for reliability optimization. Evaluating reliability of complex systems in competitive design attempts is one of the applications of this method. The advantage of this method is that it is applicable in early design phase where there is only limited failure data available. As a case study, horizontal drilling equipment is used for assessment of the proposed method. Benchmarking of the results with a system with more available failure and maintenance data verifies the effectiveness and performance quality of presented method.

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