An optimized methodology to design a more robust torpedo shell is proposed. The method has taken into account reliability requirements and controllable and uncontrollable factors such as geometry, load, material properties, manufacturing processes, installation, etc. as well as human and environmental factors. The result is a more realistic shell design. Our reliability optimization design model was developed based on sensitivity analysis. Details of the design model are given in this paper. An example of a torpedo shell design based on this model is given and demonstrates that the method produces designs that are more effective and reliable than traditional torpedo shell designs. This method can be used for other torpedo system designs.