This paper studies online fault detection and isolation of modular dynamic systems modeled as sets of place-bordered Petri nets. The common places among the set of Petri nets modeling a system capture coupling of various system components. The transitions are labeled by events, some of which are unobservable (i.e., not directly recorded by the sensors attached to the system). The events whose occurrence must be diagnosed have unobservable transition labels. These events model faults or other significant changes in the system state. The existing theory of diagnosis of discrete-event systems is extended in the context of the above model. The modular structure of the system is exploited by a distributed algorithm for fault diagnosis. A Petri net diagnoser is associated with every Petri net and the diagnosers communicate in real time during the diagnostic process when the token count of common places changes. A merge function is defined to combine the individual diagnoser states and recover the complete diagnoser state that would be obtained under a monolithic approach. Strategies that reduce the communication overhead are presented. The software implementation of the distributed algorithm is discussed. Note to Practitioners-In the last decade, monitoring, fault detection, and diagnosis methodologies based on the use of discrete-event models have been successfully used in a variety of technological systems ranging from document processing systems to intelligent transportation systems. This paper was motivated by the problem of fault diagnosis for modular (distributed) dynamic discrete-event systems (DES). As a DES modeling formalism, Petri nets offer potential advantages in terms of the distributed representation of the system and the ability to represent coupling of the system components. The systems studied in this paper are sets of modules coupled with each other through various system components and modeled using Petri nets. We present a distributed fault diagnosis algorithm which allows each module in the distributed system to diagnose its faults independently unless completion of a task requires the use of coupled components. In the case of coupling, modules communicate with each other to accurately diagnose the fault. The distributed fault diagnosis algorithm recovers the monolithic diagnosis information at the cost of communication and growing communication overhead. To mitigate that problem, we present an improved version of the algorithm that significantly reduces the communication overhead. Finally, we introduce the software toolbox (written in Matlab and integrated with AT&T Graphviz) and we present a case study of an example of a heating, ventilation, and air-conditioning system where we use the software tool for modeling and analyzing the system
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