In this paper, knowledge of relevance to dimensional inspection and three progressive levels of automation technology, ranging from the facility automation to information and decision automation, are examined. The objective is to create and advance the related knowledge and automation technologies in dimensional inspection. These knowledge and automation technologies are then integrated with traditional engineering methods for the implementation of a highly automated dimensional inspection environment. CATIA of the IBM CAD/CAM system and CORDAX RS-30 Coordinate Measuring Machine (CMM) are used as the primary tools for system implementation. The developed inspection environment consists of five key elements: (1) specification module; (2) planning module; (3) verification module; (4) execution module; and (5) comparative analysis module. These modules are being developed to bridge the missing links between inspection and design as well as manufacturing, and to become an important component of a computer-integrated manufacturing environment.