A computer-implemented method for assessing material microstructure of a machine component involves obtaining a raw image of a section of the component captured via a microscope. The method further includes pre-processing the raw image to generate a ternary image defined by pixel data including three levels of intensities. The method further includes identifying, from the ternary image, phase boundaries delineating at a phase in a primary constituent material of the component. The method further includes determining a volume associated with the phase based on the identified phase boundaries. The proposed method may be utilized, for example, as an automated tool for assessing material degradation and for quality control of gas turbine engine components.