Prognostics and health management (PHM) has become essential to guarantee aware and safe system operation and to inform economic decision-making. However, due to the nature of detection, diagnostics, and prognostic methods, applications have mainly been limited to the component level. In practice, most industrial systems consist of multiple interacting components whose partial degradation could lead to the system's failure (or subsystems).This research addresses the limitations of traditional component-level PHM techniques by proposing a novel system-level framework. By implementing a hierarchical structure of components and subsystems, we will select an optimal method for each subsystem to aggregate its component health assessments. The overall system health can then be estimated by further combining the obtained estimates. The research considers simplified and holistic modeling techniques, margin-based methods, and hybrid graphical models. This approach aims to provide reliable system health predictions and online components' sensitivity measures to enhance maintenance decision-making. We consider an application in the context of the nuclear industry, characterized by strict safety and economic requirements. Using a SIMULINK model to approximate a Pressurized Water Reactor (PWR) with real industrial inputs, we plan to add component degradation modules and use simulated sensor data and reliability information to test the proposed framework. Initial results on artificial case studies show the feasibility of integrating component-level health predictions.
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