The Loose Parts Monitoring System (LPMS™) employs seven layers of alarm discrimination and decision tree logic to identify metal-to-metal impact while minimizing costly false alarms to the control room. LPMS™ monitors, detects and evaluates metallic loose parts in reactor systems by using transient acoustic signal analysis. Acoustic sensors/accelerometers are permanently located at strategic positions on the system being monitored (in direct contact with pipes and vessels), where loose parts are most likely to impact. The sensors detect the impact of any loose parts as they come in contact with the pipe or vessel wall and subsequently alert plant operators and/or control room personal with alarm discretion and logic.