THIS PAPER ANALYZES THE MERITS OF USING SUPERABRASIVES VERSUS CONVENTIONAL ABRASIVES AND CUTTING TOOLS. THE ECONOMIC MODELS PRESENTED, INCLUDING CBN ABRASIVE, PCD AND PCBN CUTTING TOOLS, ILLUSTRATE THE VARIOUS OPPORTUNITIES FOR SIGNIFICANT ECONOMIC GAIN. THIS PAPER NOT ONLY EXAMINES DIRECT COST, BUT EXPLORES THE HIDDEN AND INTANGIBLE BENEFITS OF SUPERABRASIVES AS WELL. THESE MODELS WILL SHOW THE IMPACT ON VARIOUS DEPARTMENTS WITHIN THE USERS COMPANY--PURCHASING, INVENTORY CONTROL, QUALITY CONTROL, PRODUCTION, AND SALES. THE ECONOMIC BENEFITS CAN ONLY BE REALIZED IF THE IMPACT ON EACH DEPARTMENT BECOMES SUBORDINATE TO THE OVERALL OBJECTIVE.