Sheet metal operations are commonly used for producing various components of automobiles and home appliances. This paper deals with a review of the literature on tools used for sheet metal operations and their design and analysis. The objective of this paper is to study the various operations and tools used for sheet metal processes like blanking, piercing and forming, etc. with their pros and cons. The comparison of results is discussed for various designs for compound tools and combination tools. On the basis of results, the new combination tool will be proposed for the plate leveler component used in a domestic refrigerator. The combination tool can be used to carry out dual operations namely piercing and forming simultaneously. Presently the piercing and forming operations are carried out independently on separate machines by using the separate tools in many of the industries. However, the use of the combined tools will reduce process time, operator fatigue and tool cost.