Too many chips also can make a coolant system seem like it has a leak and can even act like a siphon, drawing coolant from the sump to the floor. These are all symptoms of bad coolant. The longer this system is ignored, the worse it is going to get. Water-based systems are a little more work and require daily checks. It is very important to change your coolant periodically.
Most machines use waylube, which drips into the coolant and contaminates it.
Paint from castings and hydraulic leaks will do the same. As you can see, your coolant can have all types of contaminants that will affect its performance. You will need to invest in a tool called a refractometer. Low coolant concentration will cause bad tool life, bacteria growth, rusting of machine areas, and many other problems. High concentration will cause the coolant to insulate the tooling and part, causing high heat that also will affect your part and tool life.