A new algorithm for manufacturing tolerance synthesis is proposed. In complex mechanical assemblies, most tolerance analysis and synthesis methods tend to be impractical. In this article, a methodology is proposed to minimize manufacturing cost by tightening important dimensional and/or geometrical tolerances. Analysis of variance and experimental design techniques are used to discriminate among various design dimensions to the overall functional requirement of the mechanical assembly. In this case, some, but not all, design dimensions will be controlled. This paper reviews the state-of-the art in the area of tolerance analysis and synthesis and highlights the contribution of this work.