Image compression plays a key role in the transmission of an image and storage capacity. Image compression aims to reduce the size of the image with no loss of significant information and no loss of quality in the image. To reduce the storage capacity of the image, the image compression is proposed in order to offer a compact illustration of the information included in the image. Image compression exists in the form of lossy or lossless. Even though image compression mechanism has a prominent role for compressing images, certain conflicts still exist in the available techniques. This paper presents an approach of Haar wavelet transform, discrete cosine transforms, and run length encoding techniques for advanced manufacturing processes with high image compression rates. These techniques work by converting an image (signal) into half of its length which is known as “detail levels”; then, the compression process is done. For simulation purposes of the proposed research, the images are segmented into 8 × 8 blocks and then inversed (decoded) operation is performed on the processed 8 × 8 block to reconstruct the original image. The same experiments were done on two other algorithms, that is, discrete cosine transform and run length encoding schemes. The proposed system is tested by comparing the results of all the three algorithms based on different images. The comparison among these techniques is drawn on the basis of peak signal to noise ratio and compression ratio. The results obtained from the experiments show that the Haar wavelet transform outperforms very well with an accuracy of 97.8% and speeds up the compression and decompression process of the image with no loss of information and quality of image. The proposed study can easily be implemented in industries for the compression of images. These compressed images are suggested for multiple purposes like image compression for metrology as measurement materials in advanced manufacturing processes, low storage and bandwidth requirements, and compressing multimedia data like audio and video formats.