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In this paper we report about our experience related to the development of low cost machine tools retrofit based principally on the implementation of universal NC software, that it allows a quick and easy adaption of new components to integrate the machine tool. It aims to provide a low cost alternative to solve this problems, and in this way to generate greater competencies in industrial and manufacturing system. This technique is aimed as strengthening modernization and helps grow the metal working industry in MSMEs and SMEs, as well as support to the education sector in developing countries. Nowadays, products are manufactured using modern technology which employs a communion of computer software, hardware and firmware and lathe machines play a vital role in manufacturing sector. While the manual lathe machines are more economical, they require to be operated by highly skilled workers otherwise their accuracy and efficiency is not up to the mark on the other hand, CNC machine provide the desired accuracy and efficiency of output, but require a huge capital. This can be done using an ARM processor to control the functioning of the lathe machine.