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MFM (Multilevel Flow Models) is applied to build up a system for monitoring and fault location diagnosis of distributed facilities in power plant. In this system, all data acquisition unit composed of PLCs are linked together as a network through CAN bus to realize early root fault searching by applying MFM fault diagnosis algorithm. A PC connected to network is responsible for system modeling and model loading to PLCs. An initial system hardware has been set up in laboratory and a software for fault diagnosis of power plant is developed by using C++ Builder to realize the intelligent network monitoring and real-time fault diagnosis.