This article deals with a designing of one part of a smart factory model with the Industry 4.0 principles. It is a three-axis CNC milling machine with automated changes of tools and workpieces. The emerging factory is not controlled centrally, but each facility has its own control system and communicates with other facilities via IoT – Internet of Things principle. The machine tool is designed to machine easily machinable materials such as artificial wood, plastic and aluminium alloys. The milling machine will also be used as an education aid. It will be used for manufacturing demonstration as well as for demonstration of basic construction elements of a CNC milling machine.