The main purpose of this work is to model continuously monitored deteriorating systems by using Monte Carlo simulation and embedding the resulting model within an 'on condition' maintenance optimisation scheme that aims at minimising the expected total system cost over a given mission time. The simulation model is first introduced by considering a non-repairable single component subjected to stochastic degradation. The modelling is then generalised to multi-component repairable systems. To find the optimal degradation thresholds of maintenance intervention, the cost optimisation procedure employed is a simple search in the space of the maintenance thresholds. The sensitivity of the results to some of the driving cost parameters ahs also been examined.
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