The objective of this research is to develop a novel correction mechanism to reduce the fluctuation range of tools in numerical control (NC) machining. Error compensation is an effective method to improve the machining accuracy of a machine tool. If the difference between two adjacent compensation data is too large, the fluctuation range of the tool will increase, which will seriously affect the surface quality of the machined parts in mechanical machining. The methodology used in compensation data processing is a simplex method of linear programming. This method reduces the fluctuation range of the tool and optimizes the tool path. The important aspect of software error compensation is to modify the initial compensation data by using an iterative method, and then the corrected tool path data are converted into actual compensated NC codes by using a postprocessor, which is implemented on the compensation module to ensure a smooth running path of the tool. The generated, calibrated, and amended NC codes were immediately fed to the machine tool controller. This technique was verified by using repeated measurements. The results of the experiments demonstrate efficient compensation and significant improvement in the machining accuracy of the NC machine tool.