Below is a common assembly line lineup. It is a conveyor based assembly line where a piece of sheet metal is traveling through several operations. The first step is the stamping / punching station in which the specified load is being monitored. When the tool gets dull, the load gets out of its accepted range and notifies the user that its time to change the tool.

Next, in the tapping station, the tool is monitored by measuring an accepted torque / force range. In both cases the information can be provided in digital format and sent to a SPC (statistical process control) for further analysis.