A continuous manufacturing method and system for liquid-crystal display elements which enhances accuracy, increases speed and improves in yield in the continuous production of liquid crystal elements. The continuous method and system performs steps of, defining a plurality of defective and normal-polarizing-sheet slitting positions on a continuous web of optical film, based on positions of defects existing in the optical film, and applying only normal polarizing sheets to a liquid-crystal panel. The polarizing sheet includes the defective and normal-polarizing-sheet slitting positions recorded as encoded information which is used to determine whether the polarizing sheet defined between slit lines sequentially formed in the continuous web, is a normal polarizing sheet, peeling the normal polarizing sheet from the carrier film and applying the normal polarizing sheet to the liquid-crystal panel.