This graduate three credit hour course focuses on the treatment of processing the data at the point of origin thus avoiding huge amounts of data storage. The approach taught in this class compresses the data to its minimal image since the physics based models are adapted in real-time. Recursive least squares methods augmented with adapted pre-filters will be presented thereby minimizing the impact of sensor noise. Methods that map the adapted model coefficients to remaining useful life estimates will be covered. A capstone design project will be required in this class where the students will demonstrate their knowledge on CPM.