Aiming at the problem that the angle error is easy to be submerged in position error with large magnitude in the kinematics parameter identification process for industrial robot, a fast and effective step-by-step identification method is proposed. Firstly, the robot Denavit-Hartenberg(D-H) model is constructed. Secondly, the two-step error model is given for the parameter identification. Finally, the experiments of kinematics parameter identification are carried out. Three experiments through external measurements by laser tracker are compared. The experimental results verify the correctness and validity of the kinematics parameter identification method for industrial robot based on two-step error model, and the identification accuracy has some advantages. Then, the original parameters of the robot are replaced by the identified parameters, and the carbon fiber sheet drilling is performed. The position degree of the processing hole is increased from 3 mm to less than 1mm.