This paper describes the production model and operation of an innovative automatic pastel production machine. In the current pastel production process in the industry, there are several types of pastel molding machines for pastel production, which employ human labor to inspect the produced pastels, remove defective pastels caused by various problems in the pastel molding process, and pack the remaining pastels into large boxes. Thus, the involvement of human labor in the pastel manufacturing process has created quality and cost problems in the pastel manufacturing industry. This article presents solutions to the problems that arise by addressing those processes through a combination of mechanical, manufacturing, mechatronics, and automation engineering. Therefore, the proposed new design uses image processing technology to identify defective pastels based on different colors and then uses an engineering solution to separate quality pastels from defective pastels and package them so that they can be used in the next process of labeling pastels. Thus, this article covers the idea of designing and manufacturing a fully automatic pastel manufacturing machine for the pastel manufacturing industry. The given method is expected to reduce labor and production-related costs and improve product quality by significantly reducing manual involvement. This automated design idea can be further developed not only for the pastel industry but also for products like candles, depending on their needs.