A literature study on the types of cutting tool materials, tool geometry, tool wear and failure is carried out. Investigation on a few machining variables and manual tool selection is also conducted. Only the minimum cost criteria per component for rough turning operations is considered. Following that an automatic tool selection using the prediction method is elaborated. Some constraints which effect the optimum cutting condition such as tool life, tool deglection, tool strength, machine power, workholding, maximum permissible depth of out, chipbreaking, work piece surface finish and maximum permissible operation time are discussed. A computer software is developed to assist in the selection of cutting tools and computation of optimum cutting condition that is speed, feed and depth of out. The estimated machining cost and number of cutting passes can also be calculated using this software. The WATFOR 77 language is being used. This software was tasted using three types of workpieces of varying dimension and two sizes of mechines. It was found that the program was capable of automatically selected the insert-holders combinations at a minimum cost and at the same time providing the optimun cutting condition.