Actually I have the best luck just doing them by hand on the bench. I use an air drill and do at least a set a week. Have been doing them that way for the last 30 years or so. I did a set today and used my 20V Dewalt drill and it worked fine. Nice not having the air hose attachedIt is a cutter to cut your guides to .530/.531. Looks like the pilot is .343 or 11/32. There should be a set screw on the other side so you can take the pilot out and exchange to 3/8 or .371 if needed. I would take the pilot out and polish the rust off it so it not damage the guide.
You can use this with a slow drill and a steady hand. I would practice first. It is better to use a bridgeport with a rotating table but most folks don't have that. A drill will work. Put some grease on the pilot before inserting it into the guide. Should work fine.