This paper describes a research work of developing a computer-aided design and machining of irregular shaped-sheet metal product for blanking or piercing operation. An approach to the CAD/CAM system is based on the knowledge-based rules. Knowledge for the CAD/CAM system is formulated from plasticity theories, experimental results and the empirical knowledge of field experts. The system has been written in AutoLISP on the AutoCAD and in customer tool kit on the SmartCAM with a personal computer and is composed of nine modules, which are input and shape treatment, flat pattern-layout, production feasibility check, blank-layout, strip-layout, die-layout, data conversion, modelling, and post-processor module. Based on knowledge-based rules, the system is designed by considering several factors, such as material and thickness of product, complexities of blank geometry and punch profile, diameter and material of a wire, and availability of press. This system is capable of generating NC data automatically according to drawings of die-layout module. Results which are carried out in each module will provide efficiencies to the designer and the manufacturer of blanking or piercing die in this field.