A valve body has an elongated bore in communication with an inlet port and an outlet port. A valve element is movable within the bore between deactuated and actuated positions. A valve sensor generates a sensor signal indicative of an instantaneous parameter of the valve that changes between the deactuated and actuated positions. A logic unit receives the sensor signal and a pilot command signal that actuates the valve. A predetermined change in the pilot command signal causes the logic unit to determine a cycle parameter responsive to a time period between two predetermined events. At least the beginning or end of the time period corresponds to a predetermined value of the sensor signal. The individual determinations of the cycle parameter are accumulated to obtain an expected cycle parameter. The logic unit generates an indication signal when the cycle parameter exhibits a predetermined variance from the expected cycle parameter.