The theory and techniques applicable to the on-line diagnosis of sequential systems, were investigated. A complete model for the study of on-line diagnosis is developed. First an appropriate class of system models is formulated which can serve as a basis for a theoretical study of on-line diagnosis. Then notions of realization, fault, fault-tolerance and diagnosability are formalized which have meaningful interpretations in the the context of on-line diagnosis. The diagnosis of systems which are structurally decomposed and are represented as a network of smaller systems is studied. The fault set considered is the set of faults which only affect one component system is the network. A characterization of those networks which can be diagnosed using a purely combinational detector is achieved. A technique is given which can be used to realize any network by a network which is diagnosable in the above sense. Limits are found on the amount of redundancy involved in any such technique
