In this paper, we propose a machine vision algorithm for inspecting inserts which are used for milling and turning operations. Major defects of the inserts are breakage and crack on insert surfaces. Among the defects, breakages on the face of the inserts can be detected through three stages of the algorithm developed in this paper. In the first stage, a multi-layer perceptron is used to recognize the inserts being inspected. Edge detection of the insert image is performed in the second stage. Finally, in the third stage breakages on the insert face are identified using Hough transform. The overall algorithm is tested on real specimens and the results show that the algorithm works fairly well.