The inner pulley is an automobile component used as air conditioner clutch assembly. In cold forging of inner pulley, the design requirements are to keep the same height of the inner rib and outer one, and to make uniform the hardness distribution in the forged product. In industry, the design of forging processes is performed based on experience-oriented technology, that is, designers experience and expensive trial and error. Using the rigid-plastic finite element simulations. we design the optimal process conditions, which has a preforming operation. Also the final product configuration of forging has to be designed again in view of metal flow involved in the operation, derived from the finite element simulations. The forged pulley is investigated by checking the hardness distribution and it is noted that distribution has improved to be even and high enough for industrial application.