The affordability of high technology inspection systems for Micro, Small and Medium Enterprises (MSME) is a big challenge since, if not implemented, it will affect productivity and quality of the product. A case study has been carried out to understand inspection practices at an MSME in India (at an orthotic footwear company), within its medical device industry where safety and risk management are critical. Raw materials are not inspected during the initial stages of production, due to which the whole product is rejected if any defect is subsequently found. Due to this rejection, manufacturing time and man hours are squandered at the expense of quality. To enable early inspection that is also economical, existing methodology is integrated to develop a system that can boot from a Next Unit Computing (NUC) with real time processing. The inspection system uses Fault Detection and Isolation (FDI) technique using ’canny edge detection algorithm’ for image processing; defects are identified as blobs by convolving the image matrix. The images are captured by low cost off-the-shelf cameras arranged in-line perpendicular to the bespoke set up. A set of light sources is used for illumination and the algorithm is evaluated for its accuracy under different light conditions.