The development in the manufacturing flied requires the continuous optimization using various methods. In order to minimize some technological output (such as surface roughness, tangential force, specific cutting force, and cutting power) characterizing material machinability, it is intended in the present paper to perform an optimizing approach of cutting parameters based on Taguchi method. Selected input cutting parameters are major cutting edge angle, cutting insert nose radius, cutting speed, feed rate, and depth of cut. The tests were performed on AISI D3 steel using mixed ceramic inserts under dry cutting conditions. A Taguchi L₁₈ orthogonal array is used to design the optimization experiment. The analysis of variance (ANOVA) is exploited to evaluate the foremost effects on the output parameters. The results indicate that both feed rate and cutting insert nose radius are the mainly influencing factors on surface roughness while both tangential force and specific cutting force are affected principally by depth of cut followed by feed rate. The most significant parameter affecting cutting power is depth of cut followed by cutting speed and feed rate. Regression equations are formulated for estimating predicted values of technological parameters. Optimal cutting parameters are determined using the signal-to-noise (S/N) ratio which was calculated for the precited technological output according to the “the smaller-the-better” approach. Based on the confirmation experiments and laboratory results, it is concluded that the Taguchi method is successfully adapted to describe the optimization of cutting parameters (inputs) for improved technological ones (output).