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Testing complex systems, such as the ASML TWINSCAN lithographic machine, is expensive and time consuming. In a previous work, a test sequencing method to calculate time-optimal test sequences has been developed. Because complex systems are composed of several subsystems, which are again composed of several modules, there exists a need to hierarchically model test sequencing problems. Such a hierarchical test sequencing problem consists of a high-level model that describes a test sequencing problem at the system level, and one or more low-level models that describe the test sequencing problems at the subsystem or module level. The tests at the system level correspond to the solutions of low-level problems. This paper describes a hierarchical test sequencing model and proposes two algorithms to compute an optimal test sequence. The benefits of hierarchically modeling a problem are less computational effort and less modeling effort, because not all relations are needed. This is illustrated by a small example. The industrial relevance of this method is illustrated on a case study related to a manufacturing testing phase of a lithographic machine.