In an interview, Olaf Tessarzyk, former CEO of machine tool builder Index Corp, talked about virtual manufacturing. Tessarzyk said simulation can verify a process or help determine if it is feasible. Secondly, it will reduce setup time and engineering time, which has a financial impact. It helps manufacturers to know if a part can actually be produced as planned. Virtual manufacturing helps shorten the time it can take a shop to become profitable. Their software is called Virtual Machine, for which in 2006 Index was recognized by the German Ministry of Innovation. It is a virtual machine because it takes the actual 3-D CAD data of the machine tool and presents it on the computer display. He added the Virtual Machine permits a great reduction in setup time to assure a good part off the machine. This was the first time a shop has a real-time computer simulation with all the features present on the machine tool. That, to him, is the breakthrough in technology.