The open-die warm extrusion technique is recommended for spur gear manufacturing. This forming technique is systematically researched by using numerical simulation analysis and physical experiments. The lubricating condition, entrance angle, and initial blank size are determined as the crucial factors on the forming quality. The influence of each factor on this technology is fully understood and ascertained. The reasons for causing the forming defect in insufficient sections are analyzed and the die structure and extrusion speed are optimized by using the response surface method (RSM) for defects control and improving the forming quality. Furthermore, the improved process, "Variable Contour Two-Step Warm Extrusion," is presented in order to obtain good forming results in a poor lubricating condition.