You can turn the Tooling Module on and off per machine. When you enable the Tooling Module here in Monitoring Configuration, then if you have added the Tooling Module widget to the OperatorConnect Tablet interface, then the Tooling widget will display for the Operator to interact with.
For Tool Life Source, if you keep the setting on "No Tool Life" then the system will track tool usage, but will not track tool usage against any "estimated tool life" data. If you select the "Manual Entry" option for Tool Life Source, then when Tools are Added / Removed / Exchanged, the person doing the manual entry for those tool changes can also add/edit the expected tool life for the tool and then the system will track the actual tool usage against the expected tool usage.