In order to enhance the accuracy and productivity of CNC machine tools, Finite Element Method (FEM) is utilized for analyzing machining operations and machine tool structures. Through this approach, it becomes possible to assess and reduce machining errors, thereby improving the precision of machined parts. Additionally, by subjecting machine tool components to analysis of stress and deformations under real operating conditions, the overall performance and lifespan of the machine tool structures can be augmented. This study provides a comprehensive review of recent published papers focusing on the implementation of finite element methods for the analysis and optimization of CNC machine tool operations and structures. In this study, a virtual model of the Goodway CNC turning machine was used to study the machine's behavior. The first three vibrational modes analyzed through a modal analysis were 108.2Hz, 133.4Hz, and 191.7Hz, which were experimentally validated using modal tests. The design precision was supported using the harmonic response. For an applied external load of 500N on the head chuck, the tool turret's transient response was established through transient analysis at 0.4s. However, after the static analysis, the maximum deformation of the machine at the same external applied load on the tool turret was upheld at 7.6µm. The spatial position analysis rectified the modal performance of the machine at a variety of set working positions. As the principal cause of rigidity originates from the base of the machine, three sets of ground support combinations were claimed to test the machine's rigidity. After the topology optimization analysis was achieved, a better-optimized version of the design is suggested. The old and new models were compared, and an increase of 1.5% in the first three modal frequencies was observed.