Modern textile industry seeks to produce textiles as little defective as possible since the presence of defects can decrease the final price of products from 45% to 65%. Automated visual inspection (AVI) systems, based on image analysis, have become an important alternative for replacing traditional inspections methods that involve human tasks. An AVI system gives the advantage of repeatability when implemented within defined constrains, offering more objective and reliable results for particular tasks than human inspection. Costs of automated inspection systems development can be reduced using modular solutions with embedded systems, in which an important advantage is the low energy consumption. Among the possibilities for developing embedded systems, the ARM processor has been explored for acquisition, monitoring and simple signal processing tasks. In a recent approach we have explored the use of the ARM processor for defects detection by implementing the wavelet transform. However, the computation speed of the preprocessing was not yet sufficient for real time applications. In this approach we significantly improve the preprocessing speed of the algorithm, by optimizing matrix operations, such that it is adequate for a real time application. The system was tested for defect detection using different defect types. The paper is focused in giving a detailed description of the basis of the algorithm implementation, such that other algorithms may use of the ARM operations for fast implementations.