In this type of machine, high pressure hydraulic fluid is transmitted throughout the machine to various hydraulic motors and hydraulic cylinders. The fluid is controlled directly or automatically by control valves and distributed through hoses and tubes.

The popularity of hydraulic machinery is due to the very large amount of power that can be transferred through small tubes and flexible hoses, and the high power density and wide array of actuators that can make use of this power.

In this type of machine, high pressure hydraulic fluid is transmitted throughout the machine to various hydraulic motors and hydraulic cylinders. The fluid is controlled directly or automatically by control valves and distributed through hoses and tubes.

The popularity of hydraulic machinery is due to the very large amount of power that can be transferred through small tubes and flexible hoses, and the high power density and wide array of actuators that can make use of this power.

The closed center circuits exist in two basic configurations, normally related to the regulator for the variable pump that supplies the oil:

Constant pressure systems (CP-system), standard. Pump pressure always equals the pressure setting for the pumpregulator. This setting must cover the maximum required load pressure. Pump delivers flow according to required sum of flow to the consumers. The CP-system generates large power losses if the machine works with large variations in load pressure and the average system pressure is much lower than the pressure setting for the pump regulator. CP is simple in design. Works like a pneumatic system. New hydraulic functions can easily be added and the system is quick in response.

Constant pressure systems (CP-system), unloaded. Same basic configuration as 'standard' CP-system but the pump is unloaded to a low stand-by pressure when all valves are in neutral position. Not so fast response as standard CP but pump life time is prolonged.

Load-sensing systems (LS-system) generates less power losses as the pump can reduce both flow and pressure to match the load requirements, but requires more tuning than the CP-system with respect to system stability. The LS-system also requires additional logical valves and compensator valves in the directional valves, thus it is technically more complex and more expensive than the CP-system. The LS-system system generates a constant power loss related to the regulating pressure drop for the pump regulator:

Power loss = ฤp_LSทQ_tot; The average ฤp_LS is around 2 MPa (290 psi). If the pump flow is high the extra loss can be considerable. The power loss also increase if the load pressures varies a lot. The cylinder areas, motor displacements and mechanical torque arms must be designed to match in load pressure in order to bring down the power losses. Pump pressure always equals the maximum load pressure when several functions are run simultaneously and the power input to the pump equals the (max. load pressure + ฤp_LS) x sum of flow.

Four basic types of load-sensing systems

(1) Load sensing without compensators in the directional valves. Hydraulically controlled LS-pump.

(2) Load sensing with up-stream compensator for each connected directional valve. Hydraulically controlled LS-pump.

(3) Load sensing with down-stream compensator for each connected directional valve. Hydraulically controlled LS-pump.

(4) Load sensing with a combination of up-stream and down-stream compensators. Hydraulically controlled LS-pump.

System type (3) gives the advantage that activated functions are synchronized, flow relation remains independent of load pressures even if pumps reach the maximum swivel angle. This feature is important for machines that often run with the pump at maximum swivel angel and with several activated functions, such as with excavators. With type (4) system, the functions with up-stream compensators have priority. Example: Steering-function for a wheel loader.

For the hydraulic fluid to do work, it must flow to the actuator and or motors, then return to a reservoir. The fluid is then filtered and re-pumped. The path taken by hydraulic fluid is called a hydraulic circuit of which there are several types. Open center circuits use pumps which supply a continuous flow. The flow is returned to tank through the control valve's open center; that is, when the control valve is centered, it provides an open return path to tank and the fluid is not pumped to a high pressure. Otherwise, if the control valve is actuated it routes fluid to and from an actuator and tank. The fluid's pressure will rise to meet any resistance, since the pump has a constant output. If the pressure rises too high, fluid returns to tank through a pressure relief valve. Multiple control valves may be stacked in series[1]. This type of circuit can use inexpensive, constant displacement pumps.

Closed center circuits supply full pressure to the control valves, whether any valves are actuated or not. The pumps vary their flow rate, pumping very little hydraulic fluid until the operator actuates a valve. The valve's spool therefore doesn't need an open center return path to tank. Multiple valves can be connected in a parallel arrangement and system pressure is equal for all valves.