As the factory automation progresses, the number of specialized product is increasing rapidly. Previous years have been characterized by the growth of 3-D micro-components production. Now-a-days, machined parts are becoming progressively smaller. So, production of machinery which remains in a conventional size is often inappropriate for such products. The term ?micro factory__ampersandsignlsquo;__ampersandsignlsquo; represents an entirely new approach to design and manufacture which minimizes production systems to match the siz of the parts they produce. The micro-lathe was one of key components in __ampersandsignquot;Micro-factories__ampersandsignquot; claiming __ampersandsignquot;small machine tools for small mechanical parts?. There is an alternative to manufacture microcomponents by micro-machine tools and micro-manipulators using conventional mechanical techniques. In India, Robot, Micro-factory, several prototypes of micro-machine tools (MMTs) and micromanipulators (MMs) have been developed. Furthermore, there is an increased need for engineers trained in micro-machine tool design and operation. This development necessitates thorough and systematic education in both industry and education institution. Inexpensive educational micro-machine tools will facilitate the required education in India. In this study we design and manufacture a prototype of an inexpensive LabVIEW controlled micro-lathe. This will facilitate the micro-machine tool education in India as these activities become active.