Abstract: A numerically controlled (NC) machine tool has apparatus for automatically positioning and feeding a cutting tool to follow a programmably predetermined path. Sensing devices are provided to detect when the cutting tool suffers an abnormality, such as becoming dull or chipped. The feed devices of the NC machine tool are then commanded, by an arithmetic unit having a memory and by an NC command generating unit, to automatically retreat the cutting tool. It retreats, without interference with the workpiece, to a first position, parametrically determined by the shape and size of the workpiece, cutting tool data for the abnormality, completion and tool exchange positions, and by the nature of the machining operation. This retreat location is a position at which the cutting tool may be replaced. After replacement of the cutting tool, the cutting tool is automatically returned, via the first position, to a second position from which the machining is resumed.