A worm screw is widely used in a geared motor unit for motion conversion from rotation to linear. For mass production of a high quality worm, the current rolling process is substituted with the milling process. Since the milling process enables the integration of all operations of worm manufacturing on a CNC(Computer Numerical Control) lathe, productivity can be remarkably improved. In this study, the tooling system for planetary milling on a CNC lathe to improve machinability is developed. However, the cutting tool-workpiece interference is important factors to be considered for producing high quality worms. For adaptability of various worms machining, the tool-workpiece interference simulation system based on a tool-tip trajectory model is developed. The developed simulation system is verified through several kinds of worms and experimental results.