I think the most efficient way to improve cutting performance, accuracy and tool life is to use a coated tool. You would of course have to adjust the cutting parameters in order to get the most out of it.

I attach a paper with a ton of info on the topic.

Thanks you Alexander.

The paper is really good!!!!

http://www.slideshare.net/joshijasmin2013/ways-to-improving-precision-turning

I hope you could appreciate the videos of Luiz Castro. Access YouTube and search for "tryally". There are 44 videos. Luiz works with micropieces, by CNC process.

Coated inserts with optimum machining parameters will yield the better machining performance.

To improve the precision of internal turning in aluminum casting pieces, go for small feeds and higher cutting speeds. After  internal turning more precision may be achieved by reaming operation. This may correct the errors inside the internal turning based on the requirement.

In relation to high precision internal turning of micropieces, look for

https://www.facebook.com/tryallytech?fref=ts

You could improve the Internal Diameter precisely using a Burnishing Tool or precision Tungsten Carbide Ball Bearing. Punch the Ball Bearing into the Hole. You will be surprise that the surface finish is smooth....Reference Material - "Ballizing"

Thank you Albert.

As a rule of thumb, internal turningi is hard task compared to external turning  particularly in finishing , I think the main issue how to supply the efficent cutting fluid at cutting zone inside. Sandvik wiper insert can be used in surface finish at high speed and high feed rate with.

Selection of machining parameter is critical if you are restricted with high tool overhang due to Internal turning. We have optimize the parameters for different tool overhangs for Al 6061

http://www.sciencedirect.com/science/article/pii/S0263224114002401