Economic performance assessment with optimized LQG benchmarking in MIMO systems

Abstract

The objective of an economic performance assessment strategy is to quantitatively measure the effectiveness of a process in an economic framework. Such procedures typically involve the comparison of current operation with an appropriate benchmark to determine potential improvement through improved process control. In this work, a linear quadratic Gaussian (LQG) controller is used as a benchmark under conditions of uncertainty. By relating key process variables to a function describing the profitability of a process, the current and potential (with LQG control) modes of operation can be assessed in an economic framework. This work provides an approach to such an assessment for a MIMO system through economic optimization of an LQG controller weighting matrix, and illustrates results in the form of a case studies.