Accurate measurements and the associated instrumentation play vital role in the development of different industries. It is generally accepted that without special purpose measuring instruments, it would be impossible to repeat the work done by another individual in any field of research. Application of gauges as a substitute for the direct measurement methods can significantly enhance the manufactured parts verification process, both in terms of speed with which the process is performed, and also the desired accuracy with which the process must be done. On the other hand, the direct transfer of measurement data from the gauge to computer can further improve and reduce the tedious process of Statistical Process Control (SPC). To fulfil the above goals, we have used CAD software to perform a feasibility study for the design and modelling of various modular bore gauge mechanisms, considering the requirements of a precise measurement instrument. We studied several mechanisms, and selected the best mechanism for this purpose. Using FEM tools, a fatigue analysis was then performed to analyze a critical part in the instrument, which experiences the maximum fatigue due to continuous operation. The life cycle calculations for this critical part show that our design and analysis process has been satisfactory, and that the method can be used for the design of precise modular bore gauges.