This is the first in a series of in game achievements (represented by medals) related to making Tools that happens to be an Xbox achievement as well. Tools require a level 4 Workshop. Every tool requires: 2 Copper and 1 Metal which are both crafted at the Smeltery and require Iron Ore and Copper Ore produced at a Mine.
You can check your status from the Town Hall. You'll earn the Bronze Medal ran at 100 produced. Tools are in turn used for other items such as Leather.
There is no associated Xbox achievement for the Silver or Gold medals, however any tools produced goes towards the following: