The basics of good tool management

Anyone who works in or around a machine shop knows that high-performance cutting tools are expensive. If the process of acquiring and using these tools is not managed properly, tool expenses can quickly and negatively impact the bottom line, whether you are operating a mom-and-pop shop or a major OEM.

Acquisition is the most obvious cost associated with high-performance cutting tools. However, many other costs are often overlooked. For example, the time it takes to change a worn or broken tool represents lost production. Some shops amortize the cost of tool changes into the price of a part, which helps improve the bottom line, but the time is lost for shops that do not amortize tool changes or cannot do it accurately.

Courtesy of All images courtesy C. Tate

Bar code scanners can help reduce administrative costs by automating the tool acquisition process. In this type of system, the empty box is scanned to create a purchase order and the new box is scanned to receive the inventory, eliminating paperwork.

Also, failure to maintain proper tool inventory can waste time and increase shipping costs. Poor inventory control can also cause missed part deliveries. To combat the problem of tool outages, shops sometimes keep more tools than necessary, inflating inventory costs.

Unfortunately, some companies never consider the actual costs associated with each order they place. Each order incurs costs—the labor involved in contacting the vendor, issuing a purchase order, receiving the goods and paying the invoice. Effective tool management reduces these costs.

Time spent looking for tools is also lost production, so it’s important to efficiently store tools. In addition, secure storage helps prevent tool damage and damaged tools from being used in a machine, which can affect part production.

Reducing the need for changing cutting tools is a key part of the tool management process. Every cutting tool change requires an operator to interface with the machine tool control, often entering new cutter information. Each time information is entered into the control is an opportunity to make a potentially catastrophic mistake. All of the machine crashes I have witnessed—and participated in—were caused by data, such as tool length or diameter, being incorrectly entered.

Conservation of the cutting edge is the cornerstone of a successful management program. Notice the chipped edges on this abused tool. This tool will require significant reconditioning and, in some shops, cannot be used again.

Therefore, conservation of the cutting edge is the cornerstone of an effective tool management program, because tool life is the most significant factor in tool cost. It is common practice to machine as fast as possible, but speed does not always improve cost. Going as fast as possible can cause premature tool wear and damage. Extending tool life without compromising efficiency is a delicate balancing act. Maximizing tool life also minimizes tool changes and, therefore, the opportunity for mistakes at the control.