SYSTEM AND METHOD FOR INSTANTANEOUS PERFORMANCE MANAGEMENT OF A MACHINE TOOL

A system (100), apparatus (110) and method for instantaneous performance management of a machine tool (105) is disclosed. The method comprises receiving real-time condition data associated with one or more components (225) of the machine tool (105) from one or more sources (115). Further, at least one parameter value associated with the one or more critical components, which is likely to affect a performance of the machine tool (105), is computed based on the condition data. Further, a digital twin of the machine tool (105) is configured based on the parameter value to simulate a behavior of the one or more critical components in a simulation environment. Further, an impact on the performance of the machine tool (105) is predicted based on the simulated behavior of the one or more critical components. Further, an operation of the machine tool (105) is optimized based on the predicted impact.