Tufting is the process of pushing pile yarns or strips of ray through a coarsely woven or non-woven backing cloth. The state of art is that the yarn supply c.q. the yam tension is not controllable and varies greatly during tufting. This varying yarn tension has a great impact on the tufting process and the final product. The total economic burden due to the loss of productivity, the waste of raw materials, and the loss of quality is estimated at about 250 MECU each year in Europe. The objective is the development of a reliable and self-controllable yarn management system for tufting machines, comprising of a system of yarn tension controllers for individual yarns, low and high yarn tension alarm sensors and an advanced control system. The advantages of the yarn management system are: 5 % productivity increase, 5% preservation of raw materials, improved quality and 40 - 50 % waste reduction. A prototype yarn management systems will be built which will provide the data for the design of commercial for both existing and newly-designed tufting machines. The Consortium consists of developers and end-users (carpet manufacturers) of the yarn management system.