To achieve first time right product in any new part development, the process requires number of trials, skilled manpower, huge cost and massive time. In case of forging process, to develop a new component lot of physical trials are required to be conducted due to the process variations. The need of the hour is shorter development time with highest quality. All these requirements can be achieved with the help of reliable computer simulations. With computer simulation, the process can be optimized and crack analysis can be carried out. Additionally the use of computer simulation in forging process reduces no. of trials, ultimately saves time and energy.The paper deals with forging process optimization by effective use of computer simulation. Existing forging process and modified forging process was simulated. The simulation software was able to simulate crack generation due to improper metal flow as observed in existing forging simulation process, and a good co-relation was established. Elimination of crack while maintaining the productivity was the main challenge. Crack was eliminated by introducing changes in forging process. Simulation process changes were implemented in actual forging and it had been found effective in eliminating the crack defect. In addition to the defect elimination, process optimization was also carried out by maintaining complete cavity filling. The simulation approach so employed resulted in defect free forged component with improved forging process.