An automated inspection system for inspecting, sorting and re-coining each of the locking bar, the rack, and the pin of a rekeyable lock cylinder, as well as other small close-tolerance components in an average cycle time of 1.5 seconds. The inspection system includes a high-speed pneumatic sorting matrix which selectively transfers the components into various length measuring stations, camera inspection stations, mechanical gauge stations, and/or coining stations, and then positions the parts at those stations for combined gauge and visual tolerance checking and sorting. Defects are identified by a combination of visual and machine-gauge inspection, and the sorted components are sorted into three bins: rejects; good parts; and parts for coining. The inspection/sorting system is capable of tolerance-checking down to 0.00011811″, with a repeatability of 0.00005906.