A compact, economical, and easy-to-use small parts machine tool that can machine small parts from bar stock as well as castings, forgings, slugs, and near net shape raw materials, is comprised a base with a spindle for moving a workpiece, a first carriage connected to the base that moves along a Z axial direction, a second carriage connected to the first carriage that moves along a Y axial direction, a third carriage connected to the second carriage that moves along an X axial direction, and a tool holder system that holds a plurality of machining tools.