This paper presents a vision system for defect (fault) detection on a coated board developed using three industrial firewire cameras and a PC. Application for image processing and system control was realized with the LabView software package. Software for defect detection is based on a variation of the image segmentation algorithm. Standard steps in image segmentation are modified to match the characteristics of defects. Software optimization was accomplished using SIMD (Single Instruction Multiple Data) technology available in the Intel Pentium 4 processors that provided real time inspection capability. System provides benefits such as: improvement in production process, higher quality of delivered coated board and reduction of waste. This was proven during successful exploitation of the system for more than a year.