Abstract: A fault detection and isolation (FDI) scheme for dynamic system proposed. This study deals
with the design of discrete-time linear system using delta operator approach and the hybrid least
squares (HLS) algorithm. A third residual generation based on statistical local approach and the
derivative of the normalized residual on a small temporal window investigated. This new technique
meets the desired FDI performance specifications by increasing the faults magnitude and decreasing
the noise effects. Some simulation results were provided to evaluate the design.