Manufacturing cost is the major factor that affects the profit of any industry or any product. Manufacturing Cost involves material, labor, equipment & tooling, quality, maintenance etc. Sheet metal forming is one of the major manufacturing processes and used for most of the products. The Die is the tooling used in the sheet metal forming. The proper design of die is important in sheet metal forming processes. This article discusses how the Combination Die can reduce the manufacturing cost, particularly the labor cost and material handling cost. For this study, a product U Clamp is considered. The Product requires piercing, bending and parting off operations. The Combination Die is designed and fabricated for the product and tested. Data on operation time, material handling time, die fabrication cost are collected, analyzed and discussed.