The condition monitoring of multi-component systems utilizes multiple sensors to capture the functional condition of the systems and allows the sensor information to be used to reason about the health information of the systems or components. Chapter 3 considers the situation when sensor signals capture unknown mixtures of component signals and proposes a two-stage vibration-based methodology to identify component degradation signals from mixed sensor signals in order to predict component-level residual lives. Specifically, we are interested in modeling the degradation of systems that consist of two or more identical components operating under similar conditions. Chapter 4 focuses on the interactive relationship between tool wear (component degradation) and product quality degradation (sensor information) that widely exists in multistage manufacturing processes and proposes a high-dimensional stochastic differential equation model to capture the interaction relationship. Then, real-time quality measurements are incorporated to online predict the residual life of the system. Chapter 5 develops a strategy of dynamic workload adjustment for parallel multi-component systems in order to control the degradation processes and failure times of individual components, for the purpose of preventing the overlap of component failures. This chapter opens a new research direction that focuses on the active control of degradation rather than only the modeling part.