In the hierarchy of manufacturing machines, the screw machine sits at the top when large product volumes are needed. An engine lathe sits at the bottom, taking the least time to set up but the most skilled labor and time to actually produce a part. A turret lathe has traditionally been one step above an engine lathe, needing greater set-up time but being able to produce a higher volume of product and usually requiring a lower-skilled operator once the set-up process is complete. Screw machines may require an extensive set-up, but once they are running, a single operator can monitor the operation of several machines.

Since the maturation of CNC, the implicit dichotomy of "manual versus automatic" still exists, but because CNC is so ubiquitous, the term "automatic" has lost some of its distinguishing power. All CNC machine tools are automatic, but the usage in the machining industries does not routinely call them by that term. The term "automatic", when it is used at all, still often refers implicitly to cam-operated machines. Thus a -axis CNC lathe is not referred to as an "automatic lathe" even if fully automated.

Most CNC Swiss-style lathes today use one or two main spindles plus one or two back spindles (secondary spindles). The main spindle is used with the guide bushing for the main machining operations. The secondary spindle is located behind the part, aligned on the Z axis. In simple operation it picks up the part as it is cut off, and accepts it for second operations, then ejects it into a bin, eliminating the need to have an operator manually change each part, as is often the case with standard CNC turning centers. This makes them very efficient, as these machines are capable of fast cycle times, producing simple parts in one cycle (i.e., no need for a second machine to finish the part with second operations), in as little as – seconds. This makes them ideal for large production runs of small-diameter parts.

The machine is controlled electronically via a computer menu style interface, the program may be modified and displayed at the machine, along with a simulated view of the process. The setter/operator needs a high level of skill to perform the process. However, the knowledge base is broader compared to the older production machines where intimate knowledge of each machine was considered essential. These machines are often set and operated by the same person, where the operator will supervise a small number of machines (cell).

The advent of the CNC lathe (or more properly, CNC turning center) has blurred these distinct levels of production to some extent. The CNC turning center most appropriately fits in the mid-range of production, replacing the turret lathe. However, it is often possible to produce a single component with a CNC turning center more quickly than can be done with an engine lathe. To some extent too, the CNC turning center has stepped into the region traditionally occupied by the (mechanical) screw machine. CNC screw machines do this to an even greater degree, but they are expensive. In some cases they are vital, yet in others a mechanical machine can match or beat overall performance and profitability. It is not unusual for cam-op automatic lathes to beat CNCs on cycle time.