Applied Automation Technologies (AAT) defines the process of generating metrology information directly on the machine tool and immediately using it to make adjustments into the machining process as "Smart Machining" - using closed-loop feedback to provide correction for the machining process and the quality of products being machined. The primary goal of any shop is manufacturing dimensionally accurate parts at minimum cost. While quality control is indispensable, conventional dimensional measurement methods are not always efficient. Digitizing measurement data where parts are manufactured and sharing that data with all manufacturing devices enables a modern competitive factory for automotive, aerospace/defense, die and mold, and many other manufacturing industries. More recently, advanced measurement software - namely CappsNC from AAT - enables machine tools themselves to perform measurements like a CMM. Offline programming with virtual machine models and using CAD part models allow the machine tool to be programmed to perform complex measurement and reporting tasks, including multi-datum profile and true position analysis. This information can immediately be used to improve the machining process by adapting various machining parameters, such as work offsets and tool offsets. Realistic program simulations, collision avoidance and optimum measurement path generations for multiple geometric features makes it very easy to program, and flexible to make changes for any type of machine tool configurations. This ultimately enables a very easy method of quickly generating metrology data directly at the production source.