Survival Analysis / Counting Process Project

Machine Reliability Survival Analysis

Statistical analysis of censored survival times for ice cream machines using Cox proportional hazards models, Nelson-Aalen and Breslow estimators, time-dependent covariates, parametric relative risk regression, hypothesis testing, and simulation.

Course

Counting Processes

Data Type

Censored Survival Data

Main Model

Cox Model

Tools

R / Survival Analysis

Project Overview

This project was completed for the course Statistical Methods for Counting Processes at TU Dortmund. The task was to analyze survival times of ice cream machines and investigate how warranty period and manufacturer influence machine failure risk.

The analysis used censored survival data, meaning that some machines failed during observation while others were replaced at the end of a year before failure was observed. The project combines non-parametric survival estimation, semi-parametric Cox regression, time-dependent covariates, parametric relative risk modelling, hypothesis testing, and simulation.

Research Motivation

For manufacturers, machine reliability is directly connected to warranty costs, customer satisfaction, and product design. A key question is whether machines show different failure behavior depending on warranty length and manufacturer. Another important question is whether the failure risk changes after the warranty period ends.

Main research goal: evaluate the effect of warranty period and manufacturer on the survival time and failure risk of ice cream machines.

Dataset

The dataset contains censored survival times for more than 100 ice cream machines. Machines that were still functional at the end of a year were replaced, so censoring times occur at multiples of 365 days.

Each machine belongs to one of three manufacturers and has either a standard 2-year warranty or a premium 5-year warranty.

Variable Description Role in Analysis
id Unique identifier for each ice cream machine Machine-level index
days Days until failure or replacement Survival time
status Failed or replaced at the end of the year Event / censoring indicator
warranty Warranty period in years: 2-year standard or 5-year premium Main explanatory variable
manufacturer Manufacturer group coded as 1, 2, or 3 Group comparison factor

Problem Definition

The project treats machine lifetime as a survival analysis problem. The event of interest is machine failure, while machines replaced before failure are treated as censored observations.

The central statistical question is whether warranty and manufacturer affect the hazard rate, meaning the instantaneous risk that a machine fails at a given time, conditional on having survived until that time.

Statistical Methods

Several survival-analysis methods were used to understand the failure process from different angles. The project starts with diagnostic plots, then moves to Cox regression, time-dependent covariates, parametric relative risk regression, and simulation-based validation.

Method Purpose Why It Matters
Nelson-Aalen Estimator Estimate cumulative hazard non-parametrically Used for diagnostics and visual comparison
Cox Proportional Hazards Model Model hazard as a function of warranty and manufacturer Core semi-parametric survival model
Breslow Estimator Estimate cumulative baseline