Tolerance analysis is investigated under an environment of concurrent design in order to lead to optimized tolerance, as traditional tolerance analysis is often inefficient and liable to mistakes. Making full use of knowledge in manufacturing tolerance analysis combined with the beta distribution model is introduced and applied. The use of beta distribution reflects fully actual capabilities in manufacture. Concurrent tolerance design is a manufacturing environment oriented design process paying more attention to influences or restraints on product design caused by such factors as the manufacturing process, machine capabilities, economy in manufacturing, etc. Process environment oriented tolerance analysis is more flexible making the designed results more practical and effective.