In factories, human posture recognition facilitates human–machine collaboration, human risk management, and workflow improvement. Compared to optical sensors, inertial sensors have the advantages of portability and resistance to obstruction, making them suitable for factories. However, existing product-level inertial sensing solutions are generally expensive. This paper proposes a low-cost human motion capture system based on BMI 160, a type of six-axis inertial measurement unit (IMU). Based on WIFI communication, the collected data are processed to obtain the displacement of human joints’ rotation angles around XYZ directions and the displacement in XYZ directions, then the human skeleton hierarchical relationship was combined to calculate the real-time human posture. Furthermore, the digital human model was been established on Unity3D to synchronously visualize and present human movements. We simulated assembly operations in a virtual reality environment for human posture data collection and posture recognition experiments. Six inertial sensors were placed on the chest, waist, knee joints, and ankle joints of both legs. There were 16,067 labeled samples obtained for posture recognition model training, and the accumulated displacement and the rotation angle of six joints in the three directions were used as input features. The bi-directional long short-term memory (BiLSTM) model was used to identify seven common operation postures: standing, slightly bending, deep bending, half-squatting, squatting, sitting, and supine, with an average accuracy of 98.24%. According to the experiment result, the proposed method could be used to develop a low-cost and effective solution to human posture recognition for factory operation.