There is considerable interest in the “Industry 4.0 project”. Industry hopes that a general solution of the metal removal problem will be found through the use of highly automated manufacturing data. Scientists hope that the computer will provide better models based on artificial intelligence and machine learning. Initial attempts leveraging existing models did not result in satisfactory results yet — largely because of mathematical, physical and metallurgical reasons. This paper presents a new mathematical-physical model to describe the total process mechanics from volume conservation, to friction, to metal plasticity with self-hardening or softening effects and dynamic phenomena during metal plastic flow. The softening effects are created by high energy corresponding to high strain-rate resulting in high temperatures. Furthermore, the developed equations for strain-rate discontinuities as well as yield shear stress with body forces have an interdependent relationship and lead to plastic deformation with dynamic behavior in the total chip formation zone. This plastic deformation is the only parameter that will not disappear after completing the process. This leads to the opportunity to check the theoretically developed grid deformation and compare it with practical results of the same area. In this publication this new theory will be used to analyze the complex contact and friction conditions between the chip and tool edge of a twist drill during operation. It will be shown that the existing conditions are leading to high wear at the corner edge and flank wear at the tool cutting edge. In addition, the existing temperatures can be estimated and compared with practical measurements, and all these complex and difficult conditions create a helical spiral chip, which could be developed as it will be presented in this paper.