Abstract: A compensation system for a computer-controlled machining apparatus having a controller and including a cutting tool and a workpiece holder which are movable relative to one another along preprogrammed path during a machining operation utilizes sensors for gathering information at a preselected stage of a machining operation relating to an actual condition. The controller compares the actual condition to a condition which the program presumes to exist at the preselected stage and alters the program in accordance with detected variations between the actual condition and the assumed condition. Such conditions may be related to process parameters, such as a position, dimension or shape of the cutting tool or workpiece or an environmental temperature associated with the machining operation, and such sensors may be a contact or a non-contact type of sensor or a temperature transducer.