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Nanoscience and nanotechnology continue to grow as fields of scientific research and commercial development as many fundamental properties are size dependent on the nano scale. There are so many techniques for the production and characterization of various ultra fine powders. To gain a fundamental understanding of size dependant properties of matter in the nanometer size regimes and to develop nanoscale materials into useful devices to benefit society requires detailed study of the experimental methods, better methods of sample preparation of mono dispersed material in large quantities, and development of nanoparticles characterization methods. Exploding wire method is one such method for the production of metal and metal oxide nanoparticles capable of producing bulk amount of metal nanoparticles at low cost. With the intention of developing better exploding wire system for the production of nanoparticle and to understand the nanoparticle formation process, we have developed two systems in the way of optimization of the experimental set-up for final production of nanoparticles. The detail analysis of the systems and its effect on the nanoparticles has been described in the paper. [ABSTRACT FROM AUTHOR]