The Department of Production and Industrial Administration of The College of Aeronautics has made a detailed analysis into the performance of numerically controlled machine tools, and this shows that when these machines are operating under light cutting loads, the total envelope tolerance is about 0.003 ins. Further investigation into the source of the errors showed that about 80 per cent of this error was due to mechanical mechanisms in the machine tool. The electronic equipment operated inside a total band of 0.0004 ins. over small distances, and 0.0006 ins. over 10 inches. This situation appeared to justify a comprehensive survey into the methods which may be used to improve the mechanical performance of these machines. After due consideration had been given to a number of possible alternatives, it was decided to fit hydrostatic lubrication to the slides, nut and screw arrangement, and the thrust bearings used on the X and Y axes of an existing No. 3 Archdale Milling Machine. The Z axis was not included in the redesign, because analysis showed that a new head casting would have been necessary. It was thought that this additional expense was not justified and that the data obtained from an examination of the performance given by the X and Y axes would show whether the system could be used with advantage in the design of new machines. The paper gives details of the calculations used to establish the dimensions of the new features fitted to the machine to satisfy the target performance conditions which appeared to be possible and are given in the introduction. The authors would like to express their appreciation to James Archdale and Co. for making a machine available for this investigation, to the Staveley Research Department, and in particular to Mr. Graham, Mr. Harris, Mr. Huntley) M r. Cummings and Mr. Hayward.