Advanced manufacturing machinery is a corner stone of essential industries of technologicallydeveloped societies. Their accuracy permits the production of complexproducts according to tight geometric dimensions and tolerances for high efficiency,interchangeability and sustainability. The accuracy of advanced manufacturingmachinery can be quantified by the performance measure of positioning accuracy.Positioning accuracy measures the closeness between a commanded and an attainedposition on a machine tool or industrial manipulator, and it is ruled by lawsof physics in classical mechanics and thermodynamics. These laws can be applied tomodel how much the machinery deflects due to gravity, expands due to a change intemperature and how much and how long it vibrates due to process forces; hence,one can quantify how much the accuracy decreases. Thus, to produce machinerywith ever higher accuracy and precision one can design machines which deflect,expand and vibrate less or one can understand and model the actual behaviour ofthe machinery to compensate for it.This licentiate thesis uses physics-based modelling to quantify the positioningaccuracy of machine tools and industrial robots. The work investigates the potentialincrease in positioning accuracy because of the simultaneous modelling of the kinematics,static deflections, vibrations and thermo-elasticity as a lumped-parametermodel of the machinery. Consequently the models can be used to quantify thechange of the accuracy throughout the workspace.The lumped parameter models presented in this work require empirical modelcalibration and validation. The success of both, calibration and validation, dependson the availability of the right measurement instruments, as these need to be ableto capture the actual positioning accuracy of machinery. This thesis focuses on theimportance of measurement instruments in industry and metrology and creates acatalogue of requirements and trends to identify the features of the measurementinstruments required for the factories of the future. These novel measurement instrumentsshall be able to improve model calibration and validation for an improvedoverall equipment effectiveness, improved product quality, reduced costs, improvedsafety and sustainability as a result of physics-based modelling and measurementof advanced manufacturing machinery.