WHAT WILL IT DO This is a low cost Smart tool management system which can be used by any institute or labs which will enable them to manage tools, track the tool users and have an organised and automated system for the same. It will also help in research & development of tool usage in comparision to the investment made for the same. There are various steps involved in this project: Systems involved: Atmega 328 board with - RFID connected, - Buzzer connected, - 2 IR sensors and - 2 Red LEDs & 2 Green LEDs Process: -It will consist of a RFID MODULE where an user will scan his RFID Tag on the scanner. -When the system approves , it will match the info of the ID (user) and switch on the Led, where red means tool has been issued by someone (not present) and green means he can issue and are available. -After picking tool, the tool holder will send input to Atmega 328 board through IR and it will change the colour of the LED when user scans RFID band to checkout. -In case, someone picks tool without scanning or with wrong authorisation, Buzzer / alarm will buzz. I have few more possibilities in this project but will try to achieve as much I can.