PID Controller philosophy for Distributed controlled systems


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What should be controller status ( AUTO/MANUAL) in case of failure of the process input being controlled? Are there any standards defining it?

For example, in case of a flow controller (PID) if the flow transmitter fails, what should be the Controller status? Should it be in Auto or go to manual? As the DCS has facility to hold the last value of the transmitter, is it a good practice to keep the controller in AUTO?