Life consumption monitoring involves monitoring the operating and environmental conditions to predict the remaining life. This thesis presents a life consumption monitoring process that applicable to the system level. Failure Modes, Mechanisms and Effects Analysis (FMMEA) is introduced as a new step in the life consumption monitoring process that systematically identifies potential failure mechanisms and models for all potential failures modes, and prioritizes the failure mechanisms to identify the high priority mechanisms. High priority mechanisms help in determining right suite of product parameters that need to be monitored for determining the damage and life consumed. A case study describing the FMMEA process for a simple electronic circuit board assembly is presented. A new methodology for remaining life prediction has been introduced in the life consumption monitoring process and is validated from a previous life consumption monitoring case study. A discussion on uncertainty and accuracy of prediction is also presented.