An attempt has been made to analyze a single-unit system with the concepts of preventive maintenance (PM) and degradation. A single server is provided immediately to rectify the faults whenever occur in the system. The operating unit is shutdown after a maximum operation time for conducting its preventive maintenance. The unit is repaired at its failure and works with reduced capacity and so called degraded unit. Server inspects the degraded unit at its failure to see the feasibility of repair. If the repair of the degraded unit is not feasible, it is replaced immediately by new one. The preventive maintenance of the unit is perfect. All distributions for different transition rates are taken as arbitrary. The regenerative point technique is adopted to drive the expressions for several reliability measures in steady state. Giving particular values to various parameters and costs, the numerical results for mean time to system failure (MTSF), availability and profit function are obtained considering exponential distribution for all random variables.