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Accurate monitoring on induction motors is mandatory for modern industry in order to guarantee the overall process quality. The common practice for monitoring is performed by third party enterprises that test the electrical machines with general-purpose instrumentation equipment, which do not allow on-line operation with the subsequent increase in production costs. Several methodologies have been proposed in recent years for detection of failures in induction motors; however, these methodologies perform the analysis offline. The contribution of this work is the development of an online monitoring of induction motor failures by measuring the vibration transient signals at the start-up with discrete wavelet transform, and its implementation as an embedded system with FPGA for SOC approach. Experimentation is realized to test the system functionality. From results it is demonstrated that the proposed methodology accurately determinates the motor condition in the presence of broken rotor bars.