Abstract: The condition of the cutting tool is monitored during a turning operation and the machine is adjusted to compensate for tool condition. The device is also used as an in-process part inspection system. A probe on the cutting tool-tool holder assembly measures the distance to the freshly cut surface and the probe signal is monitored; when this distance changes indicating tool nose wear, the numerical control is alerted to adjust the tool during the chip-forming operation to compensate for wear. A broken or worn-out tool signal shuts down the machine. After a cutting pass the part is inspected by retracting the cutting tool and running the part program. There is an error in the part when the probe signal and thus the measured distance is not constant.