Case Study: SteelWorks Quality Co. — AI-Powered Defect Detection & Quality Automation

How a steel component manufacturer achieved 99.2% defect detection accuracy and reduced scrap waste by 38% using computer vision and deep learning.

Industry
Manufacturing & Quality Control
Services
AI/ML · Computer Vision · Quality Automation
Timeline
6 Months
Quality Control AI System

Project Overview

SteelWorks Quality Co. manufactures high-specification steel components for automotive and construction sectors. Quality control was historically manual and inconsistent — visual inspectors would examine thousands of parts daily, leading to missed defects (2-3% false negatives) and high scrap rates due to costly rework and customer returns.

GridMatrix deployed a computer vision system powered by deep learning to automate 100% of incoming and in-process inspections, achieving 99.2% accuracy while reducing labor costs and scrap waste significantly.

Challenges
  • Manual visual inspection (200+ parts/hour) prone to human error
  • 2-3% defect miss rate leading to customer complaints
  • High scrap and rework costs (₹12L+ annually)
  • Inconsistent quality standards across shifts
  • No traceability for quality issues
  • Inspection bottleneck limiting production throughput
Strategy
  • Deploy computer vision cameras at critical inspection points
  • Train deep learning models on 50,000+ labeled sample images
  • Detect surface defects: scratches, dents, cracks, corrosion
  • Integrate automated rejection system with production line
  • Create quality dashboard with real-time defect analytics
  • Enable traceability and SPC (Statistical Process Control)

Actions Taken

Computer Vision Infrastructure
  • Installed 12 high-resolution industrial cameras across production line
  • Set up standardized lighting and positioning for consistent image quality
  • Integrated cameras with PLCs for real-time pass/fail signals
  • Implemented automated pneumatic reject arms for defective parts
AI/ML Model Development
  • Collected and labeled 50,000+ images of parts (good & defective)
  • Trained Faster R-CNN & YOLOv8 models for multi-class defect detection
  • Achieved 99.2% precision and 98.7% recall on validation set
  • Deployed models on edge-computing devices for <100ms inference
Quality Analytics & Integration
  • Built real-time quality dashboard with defect rate trends
  • Integrated with ERP for automated part traceability
  • Generated daily SPC reports and alerts for process anomalies
  • Enabled predictive maintenance based on defect patterns

Results (6 Months)

99.2%
Defect Detection Accuracy
-38%
Reduction in Scrap Waste
-65%
Reduction in Inspection Labor Costs
+22%
Increase in Production Throughput

Technical Implementation

The system uses industrial-grade cameras with 5MP resolution and standardized lighting to capture part images at 2 FPS (frames per second). Deep learning models deployed on NVIDIA Jetson edge devices perform real-time inference with <100ms latency. Defect types detected include surface scratches (0.5mm+), dents, cracks, and corrosion. Results are logged to a cloud database and visualized via a real-time quality dashboard. Integration with the PLC enables automated reject arms to physically separate defective parts from the production line, eliminating manual intervention.

Final Outcome

SteelWorks Quality Co. successfully automated 100% of quality inspections, achieving 99.2% defect detection accuracy. By eliminating manual inspection bottlenecks and reducing scrap waste by 38%, the company improved profitability while delivering consistently higher-quality products to customers. The system now processes 15,000+ parts daily with zero human intervention, freeing inspectors to focus on process improvement and root cause analysis.