Simulation of die-compaction of an axi-symmetric multi-stepped part of an iron powder is performed. The shape of the compact is like a synchronizer hub; hub and rim portions are of different height, and therefore compression ratio of the rim portion to that of the hub gives a great influence on density distribution and occurrence of slip-crack. Thus, the effects of tool kinematics on occurrence of a slip-crack like defect and density variation in compact are investigated. It is shown that there is a critical compression ratio in the rim portion relative to that in the hub above which a slip-crack like defect occurs and that the critical ratio increases with increasing friction at the powder-tool interfaces. It is also shown that there is an optimum compression ratio at which the density variation gives a minimum and that this ratio again increases with increasing the friction. Based on these results, we propose an optimum tool kinematics that gives desired dimensions and a desired mean density ratio for this multi-stepped part.