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How should a factory manage tool inventory? Any good methods?

Factory tool inventory management: 1) Categorized storage - store by type (countersink, drill, end mill), spec and material, each with a fixed, labeled location; 2) Tool cabinets/racks - use dedicated cabinets with individual slots per tool to prevent knocks; lock and assign a keeper; 3) Rust prevention - desiccant or rust-preventive paper in cabinets, oil on tools, periodic checks; 4) Ledger - record name, spec, material, coating, date in, uses, sharpening count, status (new/in use/for sharpening/scrapped); 5) Issue registration - log who, when, quantity and purpose to prevent loss and waste; 6) Life management - set expected life per tool type (parts or hours); force sharpening or scrapping at life, not after chipping; 7) Safety stock - keep 1-2 weeks of usage for common specs to avoid downtime; 8) FIFO - use old stock first to avoid rust from long storage; 9) Periodic count - monthly or quarterly, reconcile ledger vs physical, handle differences; 10) Scrap handling - collect scrapped tools separately; sharpen what can be sharpened, sell the rest as scrap - do not toss. Benefits: less loss and waste, lower cost; no waiting downtime, higher efficiency; less rust and damage, longer life; easier cost accounting and purchasing. Small factories: simple Excel ledger + tool cabinet; large factories: professional tool management systems (TMS). We can help design tool management programs - ask us.

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