The operation mechanism is generally considered as a key component of a wheel loader. Its working performance has great influence on the service life, stability, efficiency and economy of the loader. This paper establishes a mathematical model of Z-bar loader mechanism in polar coordinate with four-bar linkage and six-bar Watt linkage synthesis, investigates the working performance, such as mechanism transmission ratio, carry stability, parallelism, dumping in any position, bucket flat setting, maximum dig depth, extreme transmission angle and so on. Then we explore new design methods of joint-position of Z-bar loader linkage between tilt cylinder and loader frame to perfect some of the performance. A new method, comprehensive genetic algorithm, is presented to optimize non-linear equation with multi-constraints, and the results improve the multidisciplinary performance. Furthermore, a virtual prototype of the working mechanism is modeled to simulate and verify the optimization results.