An adhesive dispensing system includes a pump and at least one sensor positioned to sense movements of a component of the pump and produce signals based on the sensed movements. The dispensing system also includes a controller communicating with the at least one sensor to collect information regarding operational cycles of the pump based on the signals. As a result, one or more diagnostic processes are enabled at the controller during operation of the adhesive dispensing system. These diagnostic processes may include a leak rate test for the dispensing system, an overspeed detection test for the pump, and expected life cycle monitoring of the pump or other components.