Machining information such as form accuracy and surface roughness is an important factor for manufacturing precise parts. To this regard, OMM (On the Machine Measurement) has been researched for last several decades to alternate CMM (Coordinate Measurement Machine) process. In this research, the OMM system with a laser displacement sensor was developed for measuring form accuracy and surface roughness of the machined workpiece on the machine tool. The surface roughness was estimated comparing the sensory signal with the reference data measured from master specimen. Also, form accuracy was determined from the moving averaged raw data. In addition, the geometric error map constructed beforehand using the geometric errors of the machine tool was used to compensate the obtained form accuracy. The overall performance was compared with CMM result, and verified the feasibility of the measurement system.