I'm using a program that enables a person to grab the arm of a 5 axis machine and record a path while moving it by hand.  The problem I'm having is the encoders read every jagged movement that I make.  For example a straight line in gcode is pretty clean, but when I pull/push the machine it might be 300 lines of g-code. 

My question:  Is there software that would take my generated g-code/path and clean/smooth it up and make a jagged path to a smooth vector and generate new g-code? 
The finished g-code tolerance could be +/- .250'' max.

Most 3D CAM systems can import a point cloud and smooth it out.

Thanks for responding.  I'll look into that.