Computer-Aided Inspection Planning (CAIP) is the integration bridge between CAD/CAM and Computer Aided Inspection (CAI). A CAIP system for On-Machine Measurement (OMM) is proposed to inspect the complicated mechanical parts efficiently during machining or after machining. The inspection planning consists of Global Inspection Planning (GIP) and Local Inspection Planning (LIP). In the GIP, the system creates the optimal inspection sequence of the features in a part by analyzing the various feature information such as the relationship of the features, Probe Approach Directions (PAD), etc. Feature groups are formed for effective planning, and special feature groups are determined for sequencing. The integrated process and inspection plan is generated based on the sequences of the feature groups and the features in a feature group. A series of heuristic rules are developed to accomplish it. In the LIP of Part II, the system generates inspection parameters. The integrated inspection planning is able to determine optimum manufacturing sequence for inspection and machining processes. Finally, the results are simulated and analyzed to verify the effectiveness of the proposed CAIP.