In usual design process of machine products such as machine tools, most designers concentrate on the improvement of technical specification of the product. However, all products should be designed as those users' needs are realized. And the design process in which users' needs are extracted and reflect on the product should be expressed clearly. In this paper, a new design process that composes of both technology-oriented cycle and needs-oriented cycle is proposed. We call it needs-technology cycle. The design process was applied to a design of CNC lathe. The results of evaluation of the developed CNC lathe show that both user satisfaction and efficiency of user's work are improved more than an ordinal CNC lathe.