European SMEs which produce high precision parts by means of hard turning are facing a steady loss of competitiveness in their growing markets since existing manufacturing technologies do not fulfil increasing demands on part quality and variety. During the last years the competition has worsen due to up-coming low wages countries outside Europe and an increasing cost pressure. Additionally these days the economic crisis causes a tremendous drop in orders. To sustainably ensure the survival and competitiveness of the SMEs a technology must be provided which enables a faster part-production with concomitantly better part-qualities. This technology has to consist of an automated production system integrated in one lathe which ensures a reliable flexible production of high-precision parts of hardened steel.To achieve this goal, the development of several components to be merged into an innovative production system for the reliable production of high-precision parts of hardened steel by means of the combined process of hard turning and polishing is obligatory. These components will encompass the following:- a new developed monitoring system will detect and avoid the generation of undesirable surface defects like so called white layers.- an optical measurement device will calibrate a new tool directly and measure the cutting edge geometry and wear of the tool in order to compensate form errors in conjunction with the controlling of the lathe- the system will be completed by a polishing device to be able to produce up to optical surface qualities.To reach the envisaged high-level efficiency of the production system concerning the quality and production times the process strategy of the combined process of hard turning and polishing will be developed. Thus the “easiTAP” system enables the SMEs to a reliable production and a drastic reduction of non-productive times and thus to a significant increase of their productivity.