The upper-bound stream-function elemental technique (UBST) for the load analysis of the plane-strain forging processes is developed. This technique improves the ineffectiveness of UBET for solving forging problems that are geometrically complex or need a forming simulation for predicting the profile of the free boundary. This method combines the advantages of the stream function and the finite-element method (FEM); specifically, the curve-fitting property of the FEM and the fluid incompressibility of the stream-function. The formulated optimal design problems are solved by the flexible tolerance method. Two forming problems, strip upsetting and cosine-die extrusion, are used to illustrate the method, the reasonable results obtained showing that this technique can provide a powerful tool for industrial applications.