Controlling Tool Inventories

Tracking tooling helps control cost per job, uncover in-shop usage trends

July 26, 2011

Eliminating errors caused by incorrect tool selection

Iscar's Matrix tool management system.

Understanding and controlling tooling costs is becoming increasingly important to metalworking shops as margins shrink and competition for work increases.

One way to accurately track tooling costs and control how tools are dispensed is through the use of an automated tooling management system. These dispensing units can control how tools are used by limiting access and improve quality by ensuring that the correct tool is accessed.

Most shops have an idea of what their tooling costs are. If this amount exceeds what is expected, a tool management system can help track the root cause. If the machine flags that too many tools are being used, shops can locate the shift, operator, and machine that is using the tooling.

“Shops are taking a much more active role in tool choice these days,” said Dave Vetrecin, holemaking product manager for Iscar Tools Canada. “This includes not just how tools are chosen for jobs, but also when they are replaced on the machine and restocked into the inventory.”

These days accessing tooling is as easy as using an ATM.

For example, Iscar’s Matrix system can use a bar code scanner, magnetic strip card reader, proximity card reader, and even a biometric fingerprint scanner to allow access.

These tool systems also can be set up to e-mail or print purchase orders when tool quantities fall below a predetermined amount. This can virtually eliminate the chance of running out of tooling during critical times.

“Gone are the days that an operator finds out at two o’clock in the morning that they don’t have any more drills,” said Vetrecin.

Controlling Inventory

These systems help to eliminate error caused by incorrect tool selection because only the correct tool for the entered job will be dispensed.

With shops trying to keep the smallest amount of tooling inventory on hand as they can, better tracking is necessary.

“Tool management systems eliminate uncertainty,” explained Tim Marlatt, Iscar’s Matrix integrator and IT manager. “These are very proactive and intuitive systems. They let you know well in advance when any given tooling inventory is running low.”

Because the benefits of tracking and inventory control can be realized by shops of all sizes, these systems are suitable for both the job shop environment and large manufacturers.

In a job shop environment, high-mix, low-volume parts are the norm, and it’s up to the operator to gauge how much tool life is left before the tool needs to be replaced. Training becomes important in judging the failure modes of the inserts. Operators need to be able to recognize when a tool is near the failure point. Recognizing flank wear, built-up edges (BUE), and other tooling problems, such as chipping can be learned during training. When those experienced eyes then identify tools that need replacement, the operator then can access the tool management system for quick replacements.

“In a job shop there are expectations that a certain amount of money will be made on a job, and one way to help guarantee that is by controlling tooling costs,” said Marlatt.  “The job shops are lagging behind larger manufacturers in the precise tracking of tool usage, but as margins continue to get squeezed, it will become more of a necessity.”

One way to accurately track tooling costs and control how tools are dispensed is through the use of an automated tooling management system.

In the high-volume world of production manufacturing, tool life predictability is of paramount importance.

“In a production environment, tool life is monitored closely, and once the tool has run its expected life span, these systems can automatically dispense the needed [replacement] tool,” said Vetrecin.

One-off manufacturing also can benefit from proper tool tracking.

For example, during the manufacture of complex aerospace parts that require many hours of machining, automated tooling systems can help ensure that tool changes occur on time.

“If you are working on a $50,000 part, you don’t want to try to save $5 by trying to squeeze an extra 20 minutes out of an insert,” said Marlatt.

These tool-dispensing units can also help to eliminate error caused by incorrect tool selection because only the correct tool for the entered job will be dispensed. Also, an image of the tool can be shown to verify to the operator that he has the right tool.

Showing Returns

While it may take significant work initially to set up this type of system, especially if a shop is taking advantage of all the available tool slots and options, once it’s up and running the company can get a very high return on it, according to Marlatt.

“The return comes from knowing with absolute certainty what your tooling costs are for any given job,” said Marlatt. “Once a shop knows this information, then they can focus on getting more life and more parts out of their tooling.”

No matter how useful and forward-thinking these systems are, however, at the end of the day shops still need someone on the floor that knows tooling. If for some reason inventory of a certain tool does run out, a production stoppage is unlikely. A different but similar tool can be chosen, and this has to be done by the machinist or operator.

“We have put the Matrix system into many different-sized shops, from small to large. The more proactive the shop is, and the more forward-thinking, the better the odds that they will find this helpful,” said Marlatt. “We have seen a lot of interest just in the last year, and even through what most people in the industry would call the downturn. These systems are a great way to track tool costs, reduce errors, and learn more about tool usage.”