A drum clutch which is a main part for the automatic transmission of auto-mobiles has been manufactured by glob threading and machining. The tooth shape of the drum clutch manufactured by machining has lower dimensional accuracy than that by pressing and its machining needs the enormous cost at plant investment. Thus, this study was designed to develop cold forging process and to improve the productivity and dimensional accuracy. In this work, variables affecting dimensional accuracy were first determined, then cold forming process design according to each variables was performed by FE simulation. Optimal process was suggested on the basis of analytical results.