Abstract
This paper presents an industrial visual inspection system that uses inductive learning. The system employs RULES-3 inductive learning algorithm to extract the necessary set of rules and template matching technique to process an image. Twenty 3 x 3 masks are used to represent an image. Each example consists of 20 frequencies of each mask. The system was tested on five different types of tea or water cups in order to classify the good and bad items. The system was trained using five good cups and then tested for 113 unseen examples. The results obtained showed the high performance of the system: the efficiency of the system for correctly classifying unseen examples was 100%. The system can also decide what type of the cup is being processed.