At first, I thought the cutter movement was from making the interrupted cut but after looking again, I see that the cutter is scraping off a back relief to the teeth on the part being made. A real heavy-duty lathe with a timed cam-controlled tool post or the cross slide itself could be made to do this. Or a Shaper set to minimal stroke no clapper on the cutter timed to a rotating axis. Maybe TM51 will chime in he knows quite a bit about specialty tooling machines.