The rigid-plastic finite element analysis requires a large amount of computation time due to its non-linearity. For economic computation, mismatching refinement, and efficient domain decomposition method with different mesh density for each sub domain, is developed. A modified velocity alternating scheme for the interface treatment is proposed in order to obtain good convergence and accuracy. As a numerical example, the axisymmetric extrusion process is analyzed. The results are discussed for the various velocity update schemes form the viewpoint of convergence and accuracy. The three-dimen-sional extrusion process with rectangular section is analyzed in order to verify the effectiveness of the proposed method. Comparing the results with those of the conventional method of full region analysis, the accuracy and the computational efficiency of the proposed method are then discussed.