Shape and non-shape parameters in sheet metal forming have been estimated with inverse finite element analysis. Non-shape parameters include the blank holding force and the draw-bead force and shape parameters include blank shapes and strain distributions in the desired final shape. The inverse finite element method incorporates with an optimization scheme for direct design procedure in sheet metal forming. The developed algorithm is also capable of calculation of curved blank shapes as the initial state of binder wrap condition for large scale parts such as a front fender or a rear quarter part of a car body. The present algorithm has been applied to rectangular cup drawing and front fender stamping in order to demonstrate its versatility of optimizing the process parameters.