With the aim of tracking the deteriorating process of a specific individual multi-state system consisting of more than one multi-state component, a dynamic reliability assessment method which can utilize system-level observation history to dynamically update the reliability function of multi-state degraded systems is developed in this paper. The current and future state probabilities of components in a specific multi-state degraded system can be updated via the proposed recursive Bayesian formula. The effectiveness and accuracy of the proposed method are demonstrated via a water piping system.
