The field of sheet metal stamping had gained wide acceptance and importance especially in mechanical sector where complicated design features which once consumed greater man power and effort became simpler with the introduction of die sets in the 1920s that changed the whole scenario. With regard to the extreme relevance of this area in the present, the current work is focused on developing a multi-stage progressive tool (die) which can be utilized for stamping (blanking) a sheet metal component. In order to arrive at an efficient design, several strip layouts are analyzed. The feasible one that possesses and satisfies a balanced nature of high strip utilization factor and yield is selected. Centre of pressure is determined by distributing the action of punches from the centre of die plate in four quadrants. Thereafter, calculation of forces involved, dimensions of plates, etc., are performed. Based on the calculated values, 2-D drawing of all components including optimum strip layout is performed initially and thereafter 3-D models of components of the designed progressive tool are created. After careful observation at every stage of design, proper remedial actions are taken so that resulting design is feasible both in economical and production aspects.