In order to realize the intelligent extraction of Chinese medicine production enterprises, the old equipment can be transformed. The method of transformation is to use camera technology to obtain data. In view of the situation that the collected images are not clear enough, this paper establishes a step-by-step correction method for photographic images. In the field of visual inspection, cameras are used to collect images, and the images taken are photographic images. The photographic images may be distorted so that the parallel lines on the object become non-parallel lines in the captured image. In order to restore the true shape of the object, the image needs to be corrected. Image processing system includes image capture module, image recognition module and image correction module. Image correction first performs parallel line intersection calculation and then performs image step-by-step correction. Image step-by-step correction includes affine correction, similarity correction and metric correction. This paper summarizes the computer running logic of each correction module through experiments. The corrected camera image enters the monitoring system of traditional Chinese medicine extraction, which makes the detection of traditional Chinese medicine extraction more timely, comprehensive and effective. The successful application of step-by-step correction software for photographic images has broken through the technical bottleneck of traditional Chinese medicine extraction equipment, realized real-time and effective monitoring of key indicators in the production process of traditional Chinese medicine extraction, and formed an advanced and effective quality control system for the production process of traditional Chinese medicine extraction.Stepwise image correction technology can also be applied to process monitoring in other industries to achieve intelligent production management.