The goal of this study is to analyse the stress and the strain occurring within the work piece at the fine-blanking process and hence to assume the size direction and a distribution chart of the shearing stress as the penetration of the punch is being increased trough the application of the FEM. For this analysis we introduced the piece-wise linear method in the non linear structural analysis program for large deformation sheet metal forming and we defined it as the problem of the non linear contact. Therefore we modeled the above problems as quadratic-nodded axi-symmetrical elements for the character-istics of the work piece. From the result of this analysis it was found that the shearing stress is a great deal occurred on the surface of the work piece during the beginning process of the punch penetration and it's effect is expected to influence importantly for the formation of burnish because the deeper is the penetration of the punch in the narrow clearance zone. the greater is the degree of the strain stress.