This paper presents the economics of broaching operations, as analysed within the framework of concurrent design of the broach tool and its operating conditions. The tool is specified by its cutting teeth—tooth structure, tooth pitch and the number of such teeth—which in turn determine the length of the tool. Its operation is specified by the depth of cut per tooth and by the speed of broaching. Design constraints include broaching machine capabilities and surface finish requirements. A nonlinear mathematical optimization model, which incorporates all design variables and constraints, is developed and used to analyse broach design and operation for an illustrative case.