Machining capacity measurement is of great importance in an industrial product service system for turning processes (TP-iPSS) owing to its roles in TP-iPSS evaluation, accounting, and optimization. In this paper, the concepts of potential machining capacity (MCp), real machining capacity (MCr), and total machining capacity (MCt) are presented. As for a configured TP-iPSS whose lathe is given and determined, MCp is majorly influenced by the lathe's attachments, especially the cutting tool, MCr is majorly correlative with cutting parameters (cutting depth, cutting velocity and feed) and workpiece properties besides parameters of cutting tool. Combining different cutting tool with the TP-iPSS, different MCp and potential machining area ( Ap) can be obtained, then the measurement models of MCp and Ap are established through using multivariate regression analysis, and MCr is calculated with the product of MCp and the ratio of Ap to Ar (real machining area). In addition, MCt in a time interval can be calculated with the sum of MCr in the time interval. Finally, a case is studied to demonstrate the MCp, MCr, and MCt models and their basic applications to TP-iPSS evaluation, accounting, and optimization.