Conventional multi-step extrusion processes with solid billet are examined by the rigid-plastic finite element method in order to provide criteria for new process sequence for hollow parts. Two examples are taken for the analyses such as the current three-stage cold extrusion process for a hollow flange part and five-stage process for manufacturing an axle housing. Based on the results of simulation of the current three-stage and five-stage manufacturing processes, new design strategy for improving the process sequences is developed simply by replacing the initial billet from solid to hollow one. The developed new process sequences are applied for simulation by FEM and they are compared with the existing processes to confirm the usefulness of new process sequences with hollow initial billets. The results of simulation show that the newly proposed process sequences with hollow billet instead of solid one are more economical way to manufacture required parts, respectively.