In intelligent machine tools, a computer based control system, which can adapt the machining parameters in an optimal fashion based on sensor measurements of the machining process, should be incorporated. In this paper, the technology for adaptively optimizing the cutting conditions to maximize the material removal rate in face milling operations is proposed using the exterior penalty function method combined with multilayered neural networks. Two neural networks are introduced ; one for estimating tool were length, the other for mapping input and output relations from experimental data. Then, the optimization of cutting conditions is adaptively implemented using tool were information and predicted process output. The results are demonstrated with respect to each level of machining such as rough, fine and finish cutting.