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A method to obtain Kalman gain independent of process noise and initial state estimate error covariances during system operation is developed through the adaptive control concept in case that output measurement matrix is non-singular square matrix. A failure detection scheme of the conventional GLR method is modified to overcome much time consumption in the failure identification. Therefore it is possible to accomplish the control purpose in the state of transients in real time. The computer simulation tests show that the on-line instrument failure detection and suboptimal control can be performed very successfully.