A cost‐based importance measure for system components: An extension of the Birnbaum importance

In reliability engineering, component importance measures are used to prioritise components in a system for purposes such as reliability improvement and maintenance planning. Existing importance measures have paid little attention to the costs incurred by maintaining a system and its components within a given time period. Cost‐effectiveness analysis, however, is critically important in increasingly competitive markets. This paper proposes a new cost‐based importance measure which considers costs incurred by maintaining a system and its components within a finite time horizon. Possible extensions are discussed and examples are given to show the use of the new measure.