A method implemented using at least one processor includes receiving a plurality of measured operational parameters of a turbo machine having a rotor and a stator. The plurality of measured operational parameters includes a plurality of real-time operational parameters and a plurality of stored operational parameters. The method further includes generating a finite element model of the turbo machine and generating a plurality of snapshots based on the finite element model and the plurality of stored operational parameters. The method further includes generating a reduced order model based on the plurality of snapshots. The method also includes determining an estimated clearance between the rotor and the stator during operation of the turbo machine, based on the reduced order model and the plurality of real-time operational parameters.