Adaptive time dynamic model for production volume prediction

Data from a continuously operating high volume lathe were collected over a period of a number of months. This machine would periodically fail and unplanned maintenance was often necessary. Failures were due to a myriad of causes. At the beginning of each month, management was required to estimate production output for the month. This paper shows how this goal might be facilitated via a sequence of Bayesian models analysing previous data. The validity of the procedure is justified by an empirical study.