Blanking process is commonly used process in production of sheet metal industries to fabricate components. The Global market of sheet metal production is facing highly competition. Due to unavailability of skilled operators and shortage of affordable CAD/CAM systems, it is difficult to predict optimum clearance between punch and die to obtain high quality in small scale industries. Blanking is metal fabricating process and it is characterized by complete material separation. The simulation of the shearing process is complicated as the shear band formed is narrow and fracture criterion is inappropriate. The effect of potential parameters like thickness of sheet, punch-die clearance, tool wear, and punch geometry are studied to investigate their interactions on blanking process. It is important to select process leading parameters which can lead the process such that two similar products from two separate materials can be manufactured on same mold with high quality. This study will help to investigate the effect of thickness of sheet, clearance between punch and die and type of material on blanking process and will help to predict optimal set of parameters to obtain reasonable quality. A mathematical model of blanking process is developed and design of experiments method is used to predict optimum punch-die clearance for soft steel which will result into high quality of component.