The capabilities of finite elements codes allow now accurate simulations of blanking processes when appropriate materials modelling are used. Over the last decade, numerous numerical studies have focused on the influence of process parameters such as punch-die clearance, tools geometry and friction on blanking force and blank profile. In this study, three dimensional finite element analysis is carried out to design a lead frame blanking die using LS-Dyna3D package. After design of the blanking die, an experiment is also carried out to investigate the characteristics of blanking for nickel alloy Alloy42, a kind of IC lead frame material. In this paper, it has been researched the investigation to examine the influence of process parameters such as clearance and air cylinder pressure on the accuracy of sheared plane. Through the experiment results, it is shown that the quality of sheared plane is less affected by clearance and air cylinder pressure.