A tool crib audit isn't glamorous work, but it pays off immediately and compounds through the year. Done properly, it eliminates mystery inventory, surfaces tooling that should have been resharpened months ago, clears out scrap that's occupying crib space and occasionally getting used by mistake, and gives you a clean count for year-end purchasing decisions.
This walkthrough covers drill bits specifically, though the same framework applies to other cutting tooling.
Before You Start
The audit requires the crib to be empty enough to count accurately. That means pulling bits from machine-side storage, from coolant trays, from the "to be sharpened" pile in the corner, and from any drawer that tooling has drifted into over the past twelve months. If you've got machinists who cache their own bit collections at their stations, this is the time to collect and count everything.
You'll also need a way to record what you find. A clipboard with a printed template works fine. A spreadsheet on a tablet is better if you want the data in a usable form. Either way, you need columns for: size/type, quantity, condition (new/serviceable/needs regrind/scrap), and notes.
Step 1: Sort by Size and Type
Goal
Get everything physically sorted before you start counting. Bits mixed in a bin together are impossible to count accurately and even harder to assess.
Lay out drill bits in size order on a clean bench surface. Separate by series (jobber, screw machine, long series), by material (HSS, cobalt, carbide), and by type (standard point, split point). This takes more time up front and saves confusion through the rest of the audit.
While you're sorting, pull anything obviously broken, anything with a snapped shank, and anything so short it couldn't drill a useful hole. Set these aside as confirmed scrap — they're not worth inspecting further.
Step 2: Condition Assessment
Goal
Assign every remaining bit to one of four condition buckets: new/unused, serviceable (in-spec, can return to service), needs regrind (dull but recoverable), or scrap (not worth regrinding).
For each bit, look at three things:
The tip geometry: Are the cutting lips symmetric? Is there a defined edge, or has the tip rounded over? Is the chisel edge narrow (good) or wide (worn)? Does the bit have obvious damage — chipping, heat discoloration at the tip from overheating? A bit with good geometry goes to serviceable or new. A bit that's dull but not damaged goes to needs regrind. A bit with chipped edges, severe heat damage, or geometry that's been destroyed by a bad previous regrind is a scrap candidate.
The flute condition: Look for buildup, corrosion, or galling in the flutes. Minor discoloration is usually fine. Actual buildup that won't wipe off, pitting from corrosion, or hardened material welded to the flute surface — these affect chip evacuation and can't be fully corrected by resharpening. Assess whether the flute condition is severe enough to limit the bit's remaining useful life.
The length: Compare against a new bit of the same size. If a bit has been shortened significantly through previous regrind cycles, check the web thickness. Put a mark on bits that are approaching the point where the web has grown too thick for effective use — these may need web thinning as part of reconditioning rather than a simple regrind.
Step 3: Count and Record
Goal
A clean, written count of what you have in each condition bucket for each size.
For each size and type, record: total count, breakdown by condition bucket, and any specific notes (e.g., "3× 1/2" cobalt split point — all need web thinning"). This is the data that drives the rest of the audit decisions.
Step 4: Service Decision
For everything in the "needs regrind" bucket, make a service decision before the audit ends. Options:
- Regrind: Standard resharpening. Appropriate for bits with good geometry that are simply dull.
- Recondition: Full service including web thinning, margin work, or split point restoration. Appropriate for bits that have been through multiple cycles or that have specific geometry issues beyond dullness.
- Scrap and replace: If the regrind cost plus the remaining service life doesn't justify the spend — particularly for small-diameter bits that are cheap to replace — scrap them and note the size for the purchase list.
Don't defer this decision. If you set a "needs regrind" pile aside and don't make a disposition call, it'll still be sitting there in March.
Step 5: Gap Analysis and Purchase List
Goal
Know what you need to be fully stocked going into the new year.
Compare your count of serviceable bits (including those in the regrind queue) against your minimum par levels for each size. If you don't have par levels established, this audit is a good time to set them based on your usage over the past year.
For every size where serviceable count plus regrind returns puts you below par, add the difference to your purchase list. Include specifications: size, series, material, point type. Vague purchase orders produce incorrect inventory.
Step 6: Storage Reset
Return serviceable bits to the crib in proper storage — separate by size, labeled clearly, tips protected. Send the regrind batch out. Dispose of confirmed scrap. The crib should be in a known, documented state when you close the audit.
The audit itself takes a few hours for most shops. The value isn't just the clean count — it's the year's worth of ordering decisions, service timing decisions, and production setup decisions that get made correctly because the data is there instead of unknown.