THIS PAPER PROPOSES THAT A NEW SYSTEM BE DESIGNED THAT AUTOMATICALLY MEASURES AND ADJUSTS TOOL OFFSETS SPECIFICALLY ON MANUALLY OPERATED CNC TURNING MACHINES. IT COMBINES A RETRACTABLE ARM WITH COMPUTER VISION AND PROCESSOR TECHNOLOGY. IT ELIMINATES 80% OF THE CURRENT TOOL OFFSET ADJUSTMENT TIME. A CAMERA IS MOUNTED ON A RETRACTABLE ARM, ONE IMAGE OF EACH TOOL IS ACQUIRED, AND THE TOOL BEING MEASURED IS HELD IN A TYPICAL INDEXED POSITION AND IS STATIONARY WHEN THE IMAGE IS ACQUIRED. THE SUCCESS OF THIS PROCESS IS BASED ON KEY MECHANICAL TOLERANCES BEING HELD AND SPECIFIC COMPUTER INTERFACES BEING ESTABLISHED.