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The problem of failure diagnosis has received a considerable attention in the domain of reliability engineering, process control and computer science. The increasing stringent requirement of quality of a product needs considerable attention in the performance and reliability of the manufacturing system. In general, the feedback control algorithm for a process designed to handle small perturbation that may arise under normal operating condition but can not accommodate any abnormal behavior due to fault. Thus the automated maintenance or early detection of worn equipment is becoming a critical issue. This justifies the need of development of effective methodology in the area of fault aware controller. In this paper we proposed a novel algorithm and it have been tested and implemented for making highly reliable system like automated cricket ball stitching machine. Considering this need the present paper proposes the work on the development methodology of fault aware controller using embedded processor with reference to an early needle failure detection of a leather stitching machine.