Automated assembly machines operate continuously to achieve high production rates. Continuous operation increases the potential for faults such as jams, missing parts, and electromechanical failures ...of subsystems. The goal of this research project was to develop and validate a machine vision inspection (MVI) system to detect and classify multiple faults using a single camera as a sensor. An industrial automated O-ring assembly machine that places O-rings on to continuously moving plastic carriers at a rate of over 100 assemblies per minute was modified to serve as the test apparatus. An industrial camera with LED panel lights for illumination was used to acquire videos of the machine’s operation. A programmable logic controller (PLC) with a human-machine interface (HMI) allowed for the generation of faults in a controlled fashion. Three MVI methods, based on computer vision techniques available in the literature, were developed for this application. The methods used features extracted from the videos to classify the machine’s condition. The first method was based on Gaussian mixture models (GMMs); the second method used an optical flow approach; and the third method was based on running average and morphological image processing operations. In order to provide a single metric to quantify relative performance, a machine vision performance index (MVPI) was developed with five measures of performance: accuracy, processing time, speed of response, robustness against noise, and ease of tuning. The MVPI for the three MVI methods is reported along with the significance of the results.