Process monitoring can prevent machine and tool failure in metal-cutting. A successful process monitoring of cutting processes depends on reliable monitoring limits for the process. In industrial applications these limits have to be generated in a learning phase during a ramp-up process. In order to enable process monitoring for single batch production without a learning phase, this paper describes a simulation based approach for generating reference data to set process limits. As a foundation for calculation of monitoring limits a position-based process simulation has to be established. In a first step an approach of modeling material removal is evaluated to check whether it fits the application for parameterizing the process monitoring. In this context the potentials of a process simulation for calculating process limits are clarified. Additionally the quality of data generated by this kind of simulation is discussed. In a second step a method is described to implement machine properties by a virtual machine tool within a simulation of material removal. For that purpose a method to use actual data of axis position and tool within the simulation of material removal is necessary. With these data a way-based simulation of material removal can generate reference parameters for monitoring limits instead of using data from a learning phase during the ramp-up process. By using position data of a virtual machine tool a reliable source for the actual position of all axes enables the position-based simulation to perform material removal in a more accurate way.