Abstract: A system and method for characterizing a machining process using techniques of mechanical signature analysis produces discriminants based on vibrational activity, measured at various positions on a machine tool. The system and method provide a complete characterization of an industrial machine tool including the machining structure, tooling, fixturing, workpiece, and operating environment under transient and steady state conditions both with and without machining loads. The method includes selection of appropriate sensors (24), sensor locations (24), mounting methods (24), signal conditioning (26), and data acquisition (28) and analysis (30) based upon the particular type of machine and machining process. The vibration signature analysis includes both time and frequency domain analysis.