TMN: What’s the difference between inventory control & Tool Crib Management Software?

MFP: I usually refer to the function of the software as Tool Location Control, it’s like inventory control with some exceptions.

1)      I expect some of the tools to return.  Like most durable tools -Fixtures, dies, tool holders, collets, gages, and some costlier or repairable consumable tools. The Returning items to an inventory is not a normal inventory feature.

2)      When some tools return they require Special Handling, they are in need of repair, reclassification or numbering, inspection, even scrapping of the tool. Most inventory software doesn’t consider reclassification, repair or inspection.

3)      On Occasion I may want to find a specific tool while it is in-use, hence,  why I refer to the software as Tool Location Control. Most tooling inventory (2/3rds of it) are not in the tool crib/stores, it’s out on the shop floor in stages of production activity. Most inventory software doesn’t track to the shop floor location or in-use point.

4)      There are a few other differences, but probably the logic needed to reorder tools is harder for inventory software.  Tools have different decision points based on whether is it a Durable or a Consumable, does it need to be returned, can I use repaired or resharpened tools, to name a few conditions.

5)      And last, how can I best report on the inventory activity and consider the fact that the shop floor is actually an active storage area for the tools, I really need to view the static and active inventory/use of tools in real time and in groupings that make sense to manufacturing personnel not accountants.

TMN: How do I Implement a Tool Control Program?

MFP:  You first need discipline. I don’t care what technology you plan to use (Tool Dispensers, Bar Codes, Inductive or RFID chips) to track, issue, return, receive, or order tools; it won’t work without discipline. There are no magic bullets. If you Link to page 2 of this article 10 Rules of Successful Tool Management  , you can pick up a few of the rules and disciplines needed during the early stages of implementation.  The most important point to understand is: if you do not know where your tools are, you cannot report anything about them, account for them, charge them to anything or anyone, plan their use, order them with any savings plan in mind or control their end use.

The simpler the system is to start with the easier it will be for the crib personnel to work with in the disciplines laid out. Be sure to pick disciplines that can be adhered to within the work parameters of the employee’s normal job function. This makes the transaction data and inventory reporting more reliable.

TMN: What’s the most Popular Method of tool inventory control?

MFP:  Probably the paper Chit or manual card system. This method won out over the Brass Tag System (although still in-use) about 45 years ago.  However, I personally believe that the Snatch & Grab system is most prevalent.  All kidding aside, sadly, there is more truth to the above statements than fiction, and all manufacturing managers know it.  Too many companies are running manual tool inventory systems in their tool cribs. There have been attempts to computerize, with a home grown software program, or an EXCEL spreadsheet or modify an existing inventory or manufacturing software program to shoehorn a tool inventory feature and include the tool crib inventory, but these have all had limited features and usefulness.

There are several commercial Tool Inventory and Tracking software packages available to pick from.  ITC provides 3 different versions of its TLC32 product and 3 versions of  ATMS- Advanced Tool Management System.  TLC32 will give a company 100% control over tracking their tools and supply 90% of their tool control needs.  ATMS closes the gap on that 10% and usually meets those Blue Sky needs.

A funny thing happens once you computerize the tool crib, as one of my old time customers has said to me “I can now track my frack ups at the speed of light”.  The flow of tool tracking information into the database becomes a Strategic Necessity for following manufacturing progress and supplying tools for production.  Tool managemenrt software is a window to the shop floors production.

TMN: How would I know if Tool Location Control software would help our company?

MFP:  For a quick reference of poor tool management symptoms, go to ITC's Home Page , read it, then click the TLC button and read the lower half of that page. Otherwise, have you noticed any of these symptoms –

• Searching for tools to get a job started or a machine setup or to complete a tool assembly
• Tool is not available because of a stock out – none in the tool crib storage bin
• Tool has been assigned 2 or more names/numbers and storage locations. Duplication of the same tool.
• Got more of a tool than you need.  Over-stocking.
• Got tools you don’t need any longer – Obsolete tools.
• Expediting Over-night shipments of tools to keep a job running
• Only have 1 or 2 people that actually know where tools are stored.

TMN:  What kind a paybacks or benefits can I expect?

MFP:  I usually hear this from most customers “Why did we wait so long to implement tool management?” Here a just a few benefits or Paybacks:

• Tool Inventory is Reduced (obsolete tooling identified) by 25% to 50%
• Tool Range (proliferation & duplicates) is Reduced by up to 40%
• Machine Productivity (Tool availability – Less downtime) is Improved 5% to 15%
• Reduced Administration (established trace-ability)
• Smaller Tool Stores (Tool Crib)
• Tooling available when needed – less stock outs

 With your new found visibility of both the tool crib and the shop floor use of tools, you will be spotting and identifying the cause of production bottlenecks in a timely fashion and with practice even preventing the delays.  We haven’t even begun to explore the advantages you will gain if you implement Kit and Assembly tracking or the advantages you now have in dealing with your vendors for ordering tools.