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The video tutorial demonstrates the use of the form tool in sheet metal design. The first step is to create the geometry for the form tool and then insert it into the sheet metal project. By selecting the stopping face and faces to remove, users can specify the insertion point and design the tool accordingly. The yellow parts will be formed, blue parts will have no effect, and red parts will be removed like a punch. Once the design is complete, it can be saved as a form tool in the forming tools folder within the design library.
