A method and monitoring system for tracking operational parameters of a drive train of a monitored system includes a sensor unit affixed to the drive train. The sensor unit includes a sensor for generating an analog signal in response to an operating condition of the monitored system and an integrated local processor for processing the analog signal generated by the sensor. Actions of a sensor unit associated that is mounted from movement of a component of the drive system may be initiated via wireless receipt of instructions from another processing unit. FFT analysis may be performed by the sensor unit directly under certain speed conditions for alarm generation.