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The present paper discusses the performance model for various operating system of a thermal power plant using the concept of performance evaluation and analysis. To increase the up-time or maintain failure free operation of the plant for a long duration, it is necessary to maintain the plant at higher operational availability level. Thus up-time can be increased by implementing the stand by units parallel to active unit in plant. Formulation of the problem is carried out using Markov Birth-
Death process using probabilistic approach and a transition diagram represents the operational behaviour of the system. The availability model for a system has been developed with the help of differential equations using probabilistic approach. After that, steady state probabilities are determined. Some decision matrices are also developed, which provide various performance levels for different combinations of failure and repair rates of all subsystems.