Health monitoring based liability

PHM has the potential to drive future warranty strategies for companies to increase their competitive advantage. PHM methods are able to prevent a system from degrading by isolating it from inappropriate conditions or failing parts. PHM will permit companies to offer longer warranties at lower prices, which can further enable lifetime warranties in industry. Availability-based warranties can be implemented with the adoption of PHM, which will guarantee the availability of a system or a fleet and reduce life cycle costs. Reliability evaluation through PHM will enable flexible extended warranties and bring various benefits for both warranty providers and customers.