In the beverage manufacturing industry, fault condition that may occurs during beverage filling in the bottle either underfilled bottle or overfilled bottle, bottle has label missing, bottle has label but label printing has filled, bottle label is not straight, bottle cap is missing, bottle may be squashed during beverage packing. the most common use of image processing in industrial setting is for the automated visual inspection of product leaving a production facility. this automated visual inspection is integral part of machine vision, the technology to replace or complement manual inspections and measurements with digital cameras and image processing. in this practical exercise we are dealing with bottling production line in a facility bottling soda for domestic market. the bottling company require a vision system to automatically identify a number of different faults that may occur during filling, labeling and capping stage of production so that these bottling can be intercepted prior to packaging. out task is to design and prototype an image processing system to detect the set of faults conditions and identifying the type of faults that has occurred. we will develop prototype system using matlab.