Let me explain a simple philosophy of Okuma.
Okuma enables to update the compensation ( offset and radius ) exactly as it is the real world. So, if measurement indicates that tool got smaller, the corresponding correction should be applied. For instance, the cutter diameter 10 leaves 0,01 of material. So, the correction of cutter diameter on OSP looks: ADD -0,01 and as the result the diameter of cutter updates to 9,99