Dave,
For a thick casting, a vision system is definitely limited. For relatively thin castings, moldings, extrusions, and where good control of the casting/forging/molding is present, vision systems are commonly used. They are best at gaging inner boundary, which is comparable to an MMC modifier on the tolerance. Neither vision nor contact CMMs do particularly well with LMC when there are decently formed surfaces (i.e. no significant voids, porosity, sinks), though contact systems do approximate the outer boundary better when there are poorly formed surfaces.
For holes designed perpendicular to the primary datum, vision systems more closely approximate the Y14.5 standard which specifies the use of the true geometric counterpart, perpendicular to the datum. Contact systems tend to have significantly higher variance in this situation, depending on whether your probe tip type (ball vs cylinder).
Vision systems are very common on production floors, not just in labs, though not on a 1:1 availability ratio. Granted, I haven't seen them in an automotive casting facility, but I have seen them used in plants machining automotive, aerospace, electronics and consumer goods, and they're used extensively in molding companies. I've seen a single system used for 4 to 6 machines, each producing different parts and therefore running different programs. Even when inspecting every part, the production rate per machine (in those situations) allowed individual part inspection by all users. Increasingly, batches of parts are sent thru an automated vision system to check a variety of features without any human intervention beyond loading & unloading pallets. I'm also seeing greater integration of vision & contact systems so that you get the speed & flexibility needed.
I've also seen contact systems out on the work floor, though nominally isolated from the surrounding environment by heavyweight plastic curtains, isolation bases and overpressurized a/c systems.
Jim Sykes, P.Eng, GDTP-S
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TecEase, Inc.