1.

Tools which have to be made for jobs should be designed by the toolroom or sub-contractors.

2.

Tools needed for each operation should be specified.

3.

Tools should be standardized.

4.

A toolroom should be maintained, if feasible.

5.

Tools should be inspected and maintained in proper condition.

6.

Tools should be delivered promptly to operators when and where required.

7.

All tools should be fully accounted for and their location known at all times.

8.

Operators should be held responsible for all tools used by them.

9.

Toolkeepers should be carefully selected.

10.

Records should be kept showing performance and tool cost.

11.

A perpetual inventory of tools should be provided.

1.

Simplify the tools, jigs, dies, and fixtures requirements.

2.

Maximize the use of tooling which helps to reduce machine set-up times.

3.

Maximize the use of interchangeable tooling.

4.

Maximize the quality and reliability of tooling.

5.

Decentralize tooling storing facilities.

6.

Keep tooling as close as possible to their actual points of use to minimize the travel distances and possible waste of labor time.

7.

Maximize the overall control over tooling.

8.

Prepare tool kits for special tasks, jobs, or operations.

9.

Minimize the cost of tooling while maintaining high quality.

10.

Maintain continuous cost control of tooling.

11.

Maximize the cost-effective use of tooling sub-contractors and suppliers.

12.

Identify reliable tooling sub-contractors and suppliers who are able to provide tools on a short delivery time basis and at most competitive prices.

13.

Cross-train tooling specialists and operators for cost-effective tool maintenance purposes.

1.

Reduced capital tied up in inventory and less interest charges. Tool stocks are kept consistent with production requirements. New tools are not designed and made when proper tools already exist. Obsolete tools are disposed of.

2.

Quality of products is maintained. Good tools permit good workmanship.

3.

Production cost is reduced. Work is turned out in less time with less scrap and spoilage.

4.

Tool cost is reduced. Proper care prolongs tool life. Worn tools are salvaged. Losses due to waste and pilferage are cut down.

5.

Tool storage space is conserved and tool crib operating costs are reduced. Limited centralization, orderly arrangement, proper shelving, adequate indexes and records, and capable personnel, all contribute toward such economies.

1.

Economic advantage due to labor cost reduction.

2.

Effective tool cost recovery over a large quantity of products.

3.

Increased accuracy and improved quality of products.

4.

Increased productivity of the manufacturing process.

1.

• • What is the repayment period for a tool used under specific conditions?
• • For example, how long will it take a tool that costs $300 to pay for itself if it saves
     10 cents on direct labor cost per unit of product at a specified rate?

2.

• • How many products must be manufactured to pay for a jig of a specific estimated    cost to show a particular saving in direct labor cost per unit of product?
• • What volume of production will be required to recover the cost of a particular jig    valued at $200 to save 5 cents on direct labor cost on each piece?

3.

• • What is the estimated cost of a fixture which is required to show a particular    estimated unit saving in direct labor cost on a specified number of products?
• • What, for example, should be the "break-even" on a production run of 5,000 units if    the fixture can save 10 cents on direct labor cost per unit?

4.

• • What profit could be earned by a tool at a specific cost for an estimated saving in    direct labor cost per unit and particular rate of production output?
• • What would be the profit generated by a $300 tool if it saves 5 cents in direct labor    cost per unit on 800 units?

Tool 
Cost Factor

Tool 
Quality Factor

 Tool 
Service Factor

It is necessary to estimate the cost of making the tooling, taking into account  the appropriate cost of materials, labor, sub-contracting service, and toolroom overhead.

It is often more economical to purchase tooling from tool specialists who usually 
guarantee the quality of their products. When the company manufactures its own tooling, breakage usually represents a non-recoverable loss.

Every tool is designed to provide a service at a specific level of production. Thus, if a particular tool is marginally more expensive than another tool, it is expected to recover the excess cost by means of additional service.

1.

Purchase cost reduction.

2.

Spare parts level reduction.

3.

Storage space reduction.

4.

Administrative work reduction.

1.

Central Tool Crib.
Tools are located in one central storage place from where they are issued on demand. This method is suitable for small and medium-sized manufacturing companies.

2.

Sub-Tool Crib.
Tools are located in one central storage place from where they are distributed to sub-tool cribs which carry the necessary stock of tooling used by a specific production section. Production employees receive tools from a particular sub-tool crib, located in a certain production section. This method is suitable for larger manufacturing companies.

3.

Flexible Sub-Tool Crib.
This method is similar to the sub-tool crib tooling distribution. However, it represents a movable tool crib which can operate between floors in the form of an elevator and deliver tools to various sections. This method is suitable for medium-sized and large manufacturing companies accommodated in multi-story buildings.

 FACTORS RELATED TO TOOLING STORAGE FACILITY

• Facility Size And Plant Layout.

Tools can be stored in a central storage place or in a few smaller stores, depending on the size of the facility and plant layout.

• Allocation Of Space In Operations Department.

It is important to locate adequate tool storage facilities near those manufacturing sections that use most of the tools.

• Nature Of Product.

It is important to provide an adequate variety and quantity of tools depending on the nature of manufactured products.

• Method Of Operation.

It is essential to ensure a sufficient range and quantity of tools in accordance with requirements of various manufacturing methods.

 TOOL DISTRIBUTION METHODS

1. Selected tools are distributed to operators in accordance with Tool Requisitions prepared in advance for particular jobs. These tools are collected from operators and returned to the tool crib upon the completion of work.

• • This method of tool distribution is commonly used by manufacturing companies that operate on a regularly-planned basis and produce for stock or to order.
• • This method provides pre-planned and efficient distribution of tools to workers in accordance with current production requirements.
• • This method ensures that the time wasted by operators and machine idle time is minimized.
• • This method provides for effective tool maintenance and control, ensuring high overall utilization of tooling in the facility.

2. Selected tools are distributed to workers and are left in their possession for use on a     permanent basis.

• • This method is used to some extend for production purposes, particularly in the Just-In-Time manufacturing environment.
• • This method has its limitations, because it would require a large quantity of tooling to satisfy the needs of all operators if tools were left permanently with them.
• • This method is useful for various non-manufacturing work centers in the operations department such as assembly, quality control, and maintenance sections. Most tools used by these sections are of a special nature and, therefore, are not required by manufacturing sections.

3. Selected tools are collected by workers from the tool crib and subsequently returned by them when the work is completed.

• • This method is also used by various manufacturing organizations. It is recommended that this method be avoided and replaced with an alternative one, depending on the nature of the production activity.
• • This method is undesirable in the normal production environment because it encourages equipment idleness, unnecessary conversations among production employees, and a waste of time, causing a reduction in the overall productivity level.
• • This method could be used by certain work centers within the operations department involved in irregular manufacturing work such as toolroom or maintenance section.

1.

Toolkeepers should have adequate knowledge of all tools under their control.

2.

Delivery of tools should be done promptly and accurately in accordance with tool requisitions.

3.

Tools should always be kept in good working condition.

4.

Damaged and worn-out tools should be replaced by new or reconditioned ones.

5.

Tool damage should be assessed and charged to a proper account.

6.

Tool maintenance should be carried out on a regular basis.

7.

Unused tools should be collected and returned to the tool crib.

8.

Records of tool movements should be constantly updated.

1.

Single-Check System.
The operator secures a receipt of a tool with a brass disc with his or her number stamped on it. This disc is hung on a hook at the place where the tool is stored, so that when the tool is required, the toolkeeper will know where to locate it in the facility. There is no record, however, of how many tools are in the possession of various operators and for what purpose they are used.

2.

Double-Check System.
This system is similar to the previous one except that an additional brass disc is placed under the name of the operator who is using the tool. The toolkeeper will now be able not only to locate each tool, but also to check the quantity of tools issued to a particular operator.