Machine tools, such as lathes or mills, create finished parts by cutting away small pieces of metal from a larger piece of metal, called a workpiece. This process is known as machining. The component of the machine tool that removes the metal is called the cutting tool. As the wedge-shaped tool comes in contact with the workpiece, it cuts away a thin layer of metal, called a chip. As a result, the machining process is often call chip making.

Companies that machine metal only make money when a cutting tool is operating. Time spent setting up the machine, changing broken or worn out tool, or any other task is costing the company money. Therefore, machining must be carries out as effectively and efficiently as possible.