This is not an official tool. No documentation exists on how to use the tool and what the purpose of the tool is.
Solution
"It´s a small helper tool from development for those who want to protect custom subprogram files, i.e. partners developing custom ISV cycle solutions. When a subprog has been encoded it can be executed in ISV without seeing the files and the nc lines. This tool is to protect the original Sinumerik cycle files which are shipped with the NX installation."
Below are the steps which need to be followed.
Hardware/Software Configuration
Platform: INTL64 OS: windows OS Version: 1064 Product: NX Application: CAM Version: V1942 Function: POSTCONFIG