Precision, is probably, like beauty, in the eye of the beholder, or determined by your needs, and the equipment available.
James Watt would not have believed that it was possible to produce, consistently, cylinders and pistons to within 0.001"
Maudslay's invention of the Micrometer started us down the path of greater precision.
Aiming an arrow at a target, calls for precision of the order of an inch (25mm) or so to be within the Gold or whatever band you seek to hit. A darts player has to be more precise in order to place a dart within a band barely 3/8 inch (10mm) wide, to score a double or a triple.
If you are making vehicle engines the cylinder bores need to be within a 0.001" (0.0254mm) tolerance of nominal size.
If you are making the fuel injection equipment for that engine, the plunger and barrels, or Injector needles and Nozzle bodies will be sized to within a micron or two, and then each lapped to its partner.
If you are thinking of the track separation within an Integrated circuit, think in terms of a micron, or maybe now, of less.
Similarly with machine vices; to drill clearance holes for nuts and bolts, if it holds the work within 1mm, it will probably suffice. If you are looking to ream a cylinder, to match a plunger, or to position dowel holes, then you need a much better piece of equipment, i.e. of greater precision.
Which is why a cheap vice will have rattling good fits, and a consistently accurate one will be expensive.
A Box Brownie could never do what a Leica 111f did in terms of capability or resolution, but what would you expect for £2/10/0 (£2.50) against £168?
Howard