This paper discusses the development of engineering tools for die shape design in the forging process and the utilization of this information for determining optimal operating conditions. The tools discussed here are based on computer graphics, finite element modeling, design optimization and optimal control strategies, and can be run on personal computers, work stations and main frame computers, to meet a variety of customer needs and to provide user friendly tools for conducting “what if” studies. The methods developed here are applicable to several unit processes like extrusion, shape rolling, etc., besides forging. Details about the design variables, design constraints, objectives, analytical sensitivity calculations, condensed states, satisfaction of behavior constraints, and the optimal tracking algorithm are presented here with engineering case studies.