Toolpath generation starts by defining the part shape. Next, the machining operation is selected, such as 2D contour milling. Then, a cutting tool is chosen, which affects the path offset. The toolpath is generated around the part edges considering the tool size. This path is simulated to check for collisions or errors. Based on simulation, the path is optimized for efficiency and safety. Finally, the toolpath is exported as CNC G-code ready for machining. Variables like part geometry, operation, tool, toolpath, simulation, and gcode change step-by-step as the process progresses.