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Understanding reliability is critical in design, maintenance and durability analysis of engineering systems. A reliability simulation methodology is presented in this paper for vehicle fleets using limited data. The method can be used to estimate the reliability of non-repairable as well as repairable systems. It can optimally allocate, based on a target system reliability, individual component reliabilities using a multi-objective optimization algorithm. The algorithm establishes a Pareto front that can be used for optimal tradeoff between reliability and the associated cost. The method uses Monte Carlo simulation to estimate the system failure rate and reliability as a function of time. The probability density functions (PDF) of the time between failures for all components of the system are estimated using either limited data or a user-supplied MTBF (mean time between failures) and its coefficient of variation.

Reliability and resiliency (R&R) definitions differ depending on the system under consideration. Generally, each engineering sector defines relevant R&R metrics pertinent to their system. While this can impede cross-disciplinary engineering projects as well as research, it is a necessary strategy to capture all the relevant system characteristics. This paper highlights the difficulties associated with defining performance of such systems while using smart microgrids as an example. Further, it develops metrics and definitions that are useful in assessing their performance, based on utility theory. A microgrid must not only anticipate load conditions but also tolerate partial failures and remain optimally operating. Many of these failures happen infrequently but unexpectedly and therefore are hard to plan for. We discuss real life failure scenarios and show how the proposed definitions and metrics are beneficial.

Reaching a system level reliability target is an inverse problem. Component level reliabilities are determined for a required system level reliability. Because this inverse problem does not have a unique solution, one approach is to tradeoff system reliability with cost and to allow the designer to select a design with a target system reliability, using his/her preferences. In this case, the component reliabilities are readily available from the calculation of the reliability-cost tradeoff. To arrive at the set of solutions to be traded off, one encounters two problems. First, the system reliability calculation is based on repeated system simulations where each system state, indicating which components work and which have failed, is tested to determine if it causes system failure, and second, the task of eliciting and encoding the decision maker's preferences is extremely difficult because of uncertainty in modeling the decision maker's preferences.

The reliability theory of repairable systems is vastly different from that of non-repairable systems. The authors have recently proposed a ‘decision-based’ framework to design and maintain repairable systems for optimal performance and reliability using a set of metrics such as minimum failure free period, number of failures in planning horizon (lifecycle), and cost. The optimal solution includes the initial design, the system maintenance throughout the planning horizon, and the protocol to operate the system. In this work, we extend this idea by incorporating flexibility and demonstrate our approach using a smart charging electric microgrid architecture. The flexibility is realized by allowing the architecture to change with time. Our approach “learns” the working characteristics of the microgrid. We use actual load and supply data over a short time to quantify the load and supply random processes and also establish the correlation between them.