Product Quality Inspection using Microsoft Azure IoT Operations and Edge Device  Sridhar Pamukuntla February 24, 2026

Product Quality Inspection using Microsoft Azure IoT Operations and Edge Device 

Product Quality Inspection using Microsoft Azure IoT Operations and Edge Device

Introduction

In manufacturing environment, product quality is critical. A single defective product can lead to customer complaints, product recalls, and financial loss. Traditional manual inspection methods are slow, inconsistent, and not scalable for high-speed production lines. 

To solve this problem, we implemented an AI-powered quality inspection system that combines: 

  • An AI model running on an edge device (NVIDIA Jetson) 
  • Real-time defect detection using a camera 
  • Trigger alerts based on defect detection. 
  • removal of defective products from the production line. 
  • Microsoft Azure IoT Operations for centralized monitoring and management 

This solution ensures that defects are detected and removed instantly, while management teams gain visibility into production performance across sites. The system works without breaks and gives consistent results. This makes it ideal for fast production lines. 

Project Overview

This project focuses on building and deploying a quality inspection system for a production line for water bottle manufacturing. 

An industrial camera captures product images as they move along a conveyor belt. These images are processed on an NVIDIA Jetson edge device running a Yolo-based deep learning model. The model classifies each bottle as either Good or Defective. If a defect is detected, the system immediately triggers an alert to remove the defective product from the production line. 

At the same time, inspection events and device telemetry are securely transmitted to Microsoft Azure IoT Operations which provides centralized monitoring, configuration management, and analytics across multiple devices and production lines. 

The solution is built using an edge-to-cloud architecture, ensuring low latency, offline reliability, and enterprise scalability. 

Business Objective

Our objective of this project is to implement an intelligent, automated quality inspection system that can detect defective products in real time and immediately remove them from the production line and provide centralized management, monitoring, and scalability. 

The solution aims to: 

  • Improve product quality consistency 
  • Reduce manual inspection effort 
  • Automatically remove defective items from the production line 
  • Minimize production downtime 
  • Provide centralized monitoring and access to the production line 
  • Enable scalable deployment across multiple factory lines 

For example, in a water bottle production line, defective bottles (damaged caps, improper sealing, shape deformation) must be identified and removed instantly to avoid downstream packaging and distribution issues. 

The system must operate with millisecond-level response time while maintaining enterprise-level visibility. 

Solution: Real-Time Quality Inspection using Edge AI and Azure IoT Operations

Stage 1: Data Preparation and Annotation:

AI models need good and reliable data to perform well in real-world applications. In this project, the data comes from videos captured on a conveyor belt in a production environment. 

The first step is frame extraction. Frames are taken from the video at regular intervals. These frames show bottles in different positions. 

Next, the images are labeled. Bounding boxes are drawn around bottles and caps. Each object gets a class label. 

Label quality matters a lot for model performance. Incorrect or inconsistent labels can confuse the model during training. Accurate and consistent labeling helps improve detection accuracy and reliability. 

Once labeling is complete, the dataset is reviewed and finalized. The labeled dataset is then saved in the required format and prepared carefully for the model training process. 

Stage 2: Model Training and Validation

After labeling the dataset, it is used to train an object detection model. YOLO is a strong choice for this use case because it offers high detection accuracy while maintaining the speed required for real-time production line inspection. 

The collected dataset is divided into training, validation, and test sets. This split ensures that the model is evaluated fairly and can generalize well to new, unseen bottle images. The training set is used to teach the model, while the validation and test sets are used to measure performance. 

During training, the model learns how both good and defective bottles appear under different lighting conditions, angles, and conveyor speeds. Over multiple training epochs, the model continuously updates its internal weights to improve its ability to detect defects accurately. 

Once training is complete, the model is tested on unseen images to evaluate its performance. Metrics such as precision and recall are analyzed to understand how well the model identifies defective bottles without producing too many false detections. These metrics help ensure the inspection system is both reliable and consistent. 

When the performance reaches an acceptable level, the trained model is exported and optimized (converted to ONNX format) for deployment on the NVIDIA Jetson edge device. The optimized model is then ready to be used for real-time inspection in the production environment. 

Stage 3: Edge Deployment and Real-Time Inspection

After the model is successfully trained and validated, it is prepared for deployment on the NVIDIA Jetson edge device. The trained model is exported in an optimized format, such as ONNX, to ensure fast and efficient inference performance suitable for real-time production environments. 

Once deployed, the Jetson device continuously receives image frames from the industrial camera installed on the production line. For each bottle moving along the conveyor belt, the model performs real-time inference and classifies it as either Good or Defective. Because the processing happens locally on the edge device, the system can make decisions within milliseconds, which is critical for high-speed manufacturing lines. 

If a defect is detected, the Jetson immediately triggers a GPIO output signal. This signal activates a relay connected to the reject mechanism, ensuring that the defective bottle is removed from the production line. This immediate response prevents defective products from progressing to packaging or distribution. 

By performing both detection and actuation at the edge, the system ensures low latency, high reliability, and continuous operation even in the event of network interruptions. 

Stage 4: Cloud Integration with Microsoft Azure IoT Operations

While real-time inspection happens at the edge, integration with Microsoft Azure IoT Operations provides centralized visibility and management across production lines. 

Inspection results, device health information, and telemetry data are securely transmitted from the Jetson device to Azure using MQTT. Azure IoT Operations processes this data and enables centralized monitoring through dashboards and analytics tools. 

This integration allows plant managers to: 

  • Monitor defect rates in real time 
  • Analyze quality trends over time 
  • Identify recurring production issues 
  • Manage multiple inspection devices across sites 
  • Update configurations and models remotely

     

Azure IoT Operations acts as the management and orchestration layer, ensuring that edge devices remain secure, configurable, and scalable across the enterprise.

End-to-End Workflow

Smart water bottling with real-time quality inspection on a high-speed production line using AI vision

The complete workflow is as follows: 

  1. The camera captures the product image. 
  2. The Jetson processes the image and performs AI inference. 
  3. The model classifies the product as Good or DEFECT.
  4. If DEFECT: 
    • GPIO output is triggered.  
    • An alert is triggered to the production line. 
    • Bottle is removed from the production line. 
  5. Inspection data is published via MQTT. 
  6. Azure IoT Operations ingests and processes telemetry.
  7. Dashboards and analytics update in near real time. 

Architectural Principle

  • Edge Device = Real-time detection  
  • Azure IoT Operations = Monitors, Manages and Analyzes 

This end-to-end architecture ensures real-time quality control on the production line while enabling enterprise-level visibility and scalability. 

Conclusion

By combining Edge AI on NVIDIA Jetson with Microsoft Azure IoT Operations, this solution delivers a scalable and low-latency product quality inspection system. 

Time-critical decisions are executed locally at the edge, ensuring real-time defect removal, while Azure provides centralized monitoring, configuration management, and enterprise analytics. 

This edge-to-cloud architecture enables manufacturers to improve product quality, reduce operational costs, and move toward intelligent, data-driven manufacturing systems. 

Smart Water Bottling: AI & IoT - FAQs

It is an automated production method that uses Edge AI to inspect every bottle instantly. By processing images on-site, the system detects defects like damaged caps or deformed bottles without slowing down the conveyor line.

The core stack includes NVIDIA Jetson for edge computing, YOLO deep learning models for vision, and Microsoft Azure IoT Operations for cloud management and real-time data analytics.

Key benefits include 100% inspection coverage, immediate removal of defective products, reduced manual labor costs, and the prevention of expensive product recalls.

AI identifies micro-defects such as hairline cracks or improper seals that are invisible to the human eye. This ensures consistent product quality and protects the manufacturer’s brand reputation.

Agentic AI moves beyond simple detection; it acts as an autonomous agent that can recalibrate machinery, alert maintenance, or adjust line speeds based on the defect patterns it observes.

An industrial camera captures images of bottles on the line. An edge device (like NVIDIA Jetson) runs a YOLO model to classify the bottle. If a defect is found, it triggers a physical reject arm via GPIO.

Yes. By integrating chemical sensors with the IoT edge gateway, factories can monitor both the physical bottle integrity and the water’s pH, purity, and mineral levels simultaneously on a single dashboard.

The future lies in Autonomous Factories where AI doesn’t just find errors but predicts them before they happen, using data to optimize the entire lifecycle from molding to distribution.