Burr formation is considered as a detrimental phenomenon that not only decreases the machined part surface and assembly quality but also increases the production cost. To perform burr removal from machined edges and holes, a secondary operation called deburring is demanded. Currently, the deburring is carried out manually by the worker and it is time consuming process. Also, the inspection of axle outer race components is carried out manually and the results are recorded in job sheet status report by operators. In order to reduce the processing time and to reduce the time taken for recording the inspection results an innovative solution is proposed. The designing of the deburring setup is carried out followed by fabrication. Subsequently, an inspection technique is successfully employed in order to identify the defects in the axle outer race to assist the operator. The results of the implementation of the developed setup showed that the deburring operation has become convenient for the worker. The computer based inspection setup has delivered an accuracy of 90 % of correct detection of defects.