The reliability model with covariates for machinery parts has been extensively studied by the proportional hazards model (PHM) and its variants. However, it is not straightforward to provide business recommendations based on the results of the PHM. We use a novel method, namely the Conditional Inference Tree, to conduct the reliability analysis for the automobile engines data, provided by a UK fleet company. We find that the reliability of automobile engines is significantly related to the vehicle age, early failure, and repair history. Our tree-structured model can be easily interpreted, and tangible business recommendations are provided for the fleet management and maintenance.
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Wang et al. (2018) studied this question.
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