How heterogeneity influences condition-based maintenance for gamma degradation process

In many applications, units from the same population exhibit heterogeneity that they degrade with different rates due to random factors. This article studies how this heterogeneity in degradation influences condition-based maintenance (CBM) policy. Many CBM polices are developed based on gamma process because it is popularly used to characterise monotone degradation processes. In this study, we also model the unit’s degradation by gamma process. To account for the heterogeneity among units’ degradation, we incorporate a random effect parameter in the gamma process. Then the optimal policy for CBM is obtained through Markov decision process. We show that when heterogeneity exists, the transition probability of degradation state depends on both unit’s age and observed degradation level. And consequently, the optimal maintenance policy is a monotone control limit policy. We conduct extensive numerical experiments to validate and demonstrate our findings in depth.