They're great.
The problem with sheet metal, and especially for larger holes, is that
the flutes on a conventional twist drill can grab very easily, and make
a mess of either the hole or the operator or sometimes both. Stepped
drills work well because each step acts as it's own support and keeps
the drill centred in the hole while making the cut.
They work best on sheet metal, but they're not limited to that use. I
used them on anything up to around 5mm if I just have to drill a single
hole, and was using one today as it happens to drill through a 3mm thick
diff housing to install a custom made drain plug bung.
On thicker materials spiral flutes leave a cleaner hole, whereas on
sheet metal spiral or straight flutes don't seem to make much difference.
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Regards,
Noddy.