The paper reports an advanced finite element analysis code for the investigation of the cutting process of rectangular groove. Three different restricted contact tools (RC tools) with rectangular, trapezoidal and double-trapezoidal shapes were employed in this study. The cutting force, feed force and rake face temperature distribution during the cutting process were analysed. The simulation results show that asymmetric tool-chip restricted contact shape causes the chip to break more easily than the symmetric tools. The RC tool shows significant reductions both in cutting force (6~8 %) and feed force (70~80 %) than traditional tools. It is also found that the RC tools give 12 % reduction in mean temperature on tool rake face compared to those of traditional tools. The simulation results indicate that the tools with asymmetric tool-chip contact shapes have advantages over symmetrical ones in terms of decreasing chip breakage, reducing cutting force and tool cooling.