The integrated fault diagnosis and fault-tolerant control problem is studied in this paper for linear systems subject to control input constraints. By using an adaptive observer to estimate the constant actuator fault magnitudes and the states simultaneously, a feedback controller is designed to stabilize the closed-loop system. With upper bounds of the fault amplitudes being proportional to the control limits, the admissible initial conditions and estimation errors are given and bounded by a contractively invariant ellipsoidal set. Matrix conditions are presented for the design of both observer and controller. For computation of the controller gain, a nonlinear programming algorithm is proposed. The ADMIRE (Aero Data Model In Research Environment) model is used to verify the effectiveness of the proposed design techniques.

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