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CAM is generally the second step in the automated manufacturing process. CAM is the conversion of the description of a part, as embodied in a CAD drawing, into a description of how to MAKE the part, in some particular technology. The most common might be CNC machining, in which a block of material is carved away, like sculpting, until only the desired shape is left. While the CAD drawing need not pay much attention to the method of production, the CAM process must be aware of the restrictions of the type of machine to be used, so that the material is not undercut, leaving gouges in the surface. Of course, the CAD drawing should be made with at least some thought as to which side to draw 'up', to make the CAM process easier to perform, and it is always possible to design a part that cannot be fabricated with any known process.

Almost any CAM process must be interactive, with the user specifying appropriate tools for each surface to be cut. selecting the wrong tools can vastly increase the time to machine the part, or leave the part with excessively large fillet radii at the intersection of two planes, for instance. In many systems, there are various options to select how roughing passes are to be made, how obstructions inside pockets are to be maneuvered around, etc. A program that knows how to program using cutter radius compensation is a great benefit, especially in production shops, as the CAM process does not have to be redone to allow the use of off-size end mills. The tricky part here is knowing how to 'lead-in' to and 'lead-out' from the radius compensation without gouging the part's final outline.

The typical output of a CAM program is a file of RS-274D 'G-Code' commands. There are also some CAM systems that integrate CAD, CAM and motion control functions in one program.