The processing of Sheet metal includes the number of process, which forms the finished product. Shearing is the preliminary process in the sheet metal processing industries. In this paper, an attempt has been made to develop an approach to predict the optimal process parameters such as Squareness and length for the Shearing process on sheet metal. The Grey based Taguchi method is used to produce the optimal level of the selected controlled factors. The Grey relational grade is calculated and the statistical analysis of variance results the significant parameters. The obtained model is further processed with the simulated annealing algorithm to get the optimal process parameter values.