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This paper provides a feasibility evaluation of applying the optical inspection system to provide accurate and rapid on-line gap measurements for a specially designed non-contacting steel plate conveyance structure in a steel mill. Framework of the conveyance system has been designed based on a linear induction motor configuration with sets of stator primary windings being energized to supply desired fluxes, while the steel plate is operated as the movable secondary that can be both lifted and conveyed to the designated directions. The optical inspection system at a steel mill is commonly employed to determine the dimension accuracy of produced steel plate. Based on such scheme, preliminary investigation of using the optical inspection system to the on-line dynamic gap measurements of a laboratory non-contacting conveyance system operations have been successfully performed. More complicated software and hardware data filtering and adjustments based on digital image processing techniques have been adapted to the entire system formulation and estimation. Results show that the system, which being implemented with a fine-tuned interfacing/processing scheme, can supply accurate and rapid gap measurements and thus fulfil the design and field operational objectives.