Paper manufacturing industries have huge facilities with automatic equipments. Especially, in order to improve the efficiency of the paper manufacturing processes, it is necessary to detect the paper cutting defect effectively and to classify the causes correctly. In this paper, we review the problems of web monitoring system and web inspection system that have been traditionally used in industries for defect detection. Then we propose a novel paper cutting defect detection method based on the local binary pattern analysis and its implementation to mitigate the practical problems in industry environment. The proposed algorithm classifies the defects into edge-type and region-type and then it is shown that the proposed system works stably on the real paper cutting defect detection system.