Hold the tile in place on the wall where it will be installed and mark the position of the pipe on the front of the tile with a pencil.
Attach the hole saw with the guiding bit to the variable speed drill. Coat the edge of the hole saw and the tip of the guiding bit with cooling oil to prevent the drill from overheating as it cuts through the tile.
Place the guiding bit in the center of the pencil mark on the tile and twist it back and forth slightly to help it get a grip on the tile. Begin to drill slowly into the tile until the guiding bit has gone through and the hole saw is in contact with the tile.
Speed up the drill until the hole saw has bored through the tile. If at any time the drill bit glows red or smoke appears, pour more cooling oil on the tile.
Place the tile on the wall over the valve and trace a square outline on the tile around the area where the valve will protrude. There should be two horizontal lines on the top and bottom of the pipe and one vertical line connecting them with the outside edge of the tile helping to form a rectangle or square.
Place the tile on a tile wet saw with the first of the two horizontal lines lined up with the blade. Turn on the saw and gently push the tile toward the blade until it cuts through to the vertical line. Pull the tile out and make a second cut on the remaining horizontal line.
Place a straightedge on the tile next to the vertical line and score it several times with a carbide-tipped pencil. Use the straightedge to ensure that each score lines up in the same place.
Place the tile nippers on the section of tile between the two cuts and push downward while gripping the handle of the nippers to break off the section of scored tile. Use the nippers to take small bites out of the tile to tidy up the edge if there was not a clean break.