In general, this report discusses the techniques and applications of failure diagnosis and performance monitoring and provides a case study to demonstrate condition monitoring of a mechanical system and associated controls. Relationships with respect to system reliability, availability, safety, and maintenance and the impact of good failure diagnosis performance on several operational characteristics of mechanical systems are presented in this report. Guidelines are provided for the development and design of reliability and maintenance data banks and the use of data collected. Failure analysis is discussed in a descriptive manner and covers not only diagnostics but also performance monitoring and statistical analysis of failure information. The objective of the report is to provide an overview and understanding of the activities and practices of the subject matter and familiarize the reader with this rather broad topic. / Master of Science