| SPCR | p-value range (when beta > 1) | Narrative |
|---|---|---|
| 1 | p ≥ 0.20, or beta ≤ 1 | No significant evidence or improving / stable. |
| 2 | 0.10 ≤ p < 0.20 | Weak evidence. |
| 3 | 0.05 ≤ p < 0.10 | Some evidence. |
| 4 | 0.02 ≤ p < 0.05 | Evidence. |
| 5 | p < 0.02 | Strong evidence. |
The Non-Homogeneous Poisson Process (NHPP) power-law model describes how the expected cumulative number of failures grows over time. When β > 1 the failure intensity is increasing (degradation); when β < 1 it is decreasing (improvement); β = 1 is a constant-rate HPP.
MCF(t) = expected cumulative failures by time t from the first observed failure. η is the scale parameter; β (shape / trend parameter) drives the curvature.
Record the calendar date of every functional failure event for the asset group. Sort all m dates in ascending order: t₁ ≤ t₂ ≤ … ≤ tm.
T is the total span from the first recorded failure to the last. It is measured in days.
Re-index so that t₁ = 0 (the origin). All subsequent failure ages tᵢ are then days elapsed since that first failure. T = tm in this reference frame.
For every event after the first, compute the log ratio of the total span to the event age:
First event (i = 1, t = 0): excluded — ln(T/0) is undefined.
Last event (i = m, t = T): included but contributes ln(T/T) = ln(1) = 0.
Events on the same calendar date as the first failure also have t = 0 and are excluded.
n = m − 1 effective observations (the m − 1 events that contribute to this sum, including the last which adds 0).
The maximum-likelihood estimator for the failure-terminated Crow-AMSAA model:
If β̂ ≤ 1 the system is improving or stable — set SPCR = 1 and stop. No chi-squared test is needed.
η is in units of failures · day−β. Together with β it fully defines the fitted power-law MCF.
Under the failure-terminated model, 2n · β_true / β̂ ~ χ²(2n). Inverting this pivot:
A CI that straddles 1.0 means the data are consistent with a stable system despite β̂ > 1.
Under H₀ (β = 1, homogeneous Poisson process), the test statistic follows a chi-squared distribution:
β̂ ≤ 1 → SPCR 1 regardless of p. Otherwise band on the two-sided p as per the table above.
This extrapolates the fitted trend forward. Planning aid only — not a precision forecast.