Machining of components may cause geometric distortions and thereby quality issues and increased costs. This paper presents an engineering approach of CAD/CAM based manufacturing simulation in order to be in control of geometric distortions after machining. The method utilises STEP AP209 for communication of CAD/CAM simulation data. The method improves the ability to optimise process parameters, geometry, and material, in order to fulfil the design requirements. The method supports concurrent design and process planning using 3D models in CAD/CAM and FEM.