A finite element study is made to investigate machining as a method of Severe Plastic Deformation for production of nanostructured materials. In machining, large strains are imposed within a narrow zone as material passes from the undeformed workpiece into the chip. These chips, normally discarded, may possess a refined microstructure and associated increases in strength and hardness properties depending on the cutting, i.e., deformation, conditions. The finite element method is used to establish a relationship between input parameters of tool rake angle, workpiece material, and friction at machining interface, and the resulting deformation parameters of strain, strain rate and velocity of material flow. Results from these simulations are compared with experimental deformation data with reasonable agreement. Furthermore, correlations are made between deformation characteristics of machining and a more established method of severe plastic deformation, equal channel angular pressing. The combined benefits of the large strains and microstructure refinement produced by machining, and the controllability of geometry in equal channel angular pressing, may be realized by applying a constraining tool to the surface of the chip opposite to that of the cutting tool enabling bars, plates and foils of predetermined geometry to be produced—the process of Large Strain Extrusion Machining. Finite element simulations are used to analyze the strain and strain distribution in Large Strain Extrusion Machining as well to obtain upper and lower bounds on the chip thickness ratio. Lastly, future methods of severe plastic deformation inspired by the machining process are explored.