This article uses dimensional analysis to formulate the tool life in the turning process of metal cutting for small-lot production by considering the impacts of the most important parameters. The estimation of tool life specifies process efficiency, machining productivity, resource consumption, machining time, and cost. Many parameters influence tool life on the real shop floor in small-lot production. This literature review studies 29 parameters affecting tool life directly or indirectly. The results of this research are represented as a graph-based analysis in the form of a web of interdependencies and a relationship matrix. The relationship matrix illustrates the direct and indirect interdependencies of the parameters which influence tool life in the turning process. The graph visualizes the weight of the parameters for the estimation of tool life in small-lot production. A cause-and-effect diagram is extracted from the relationship matrix to study the parameters affecting tool life in small-lot production. A dimensional analysis is executed based on the cause-and-effect diagram in order to calculate the tool life. The functions of tool life involve the cutting conditions, tool and workpiece hardness, cutting force, and cutting temperature. The dimensional analysis shows that the cutting speed, feed rate, and workpiece hardness are the most effective factors impacting tool life in the turning process.