This Project Report presents the basic fundamental of value engineering that can be implemented in any product to optimize its value. A case study of L&T Technology Services is discussed in which the material, design of components is changed according to the value engineering methodology. In the present case study, it is observed that the unnecessary increase in cost is due to the use of expensive material, increase in variety of items and thereby increasing the inventory and so on. Therefore, selected some components and applied value engineering technique for the cost reduction of these components. Value Engineering is an effective tool in identifying areas where cost reduction can be achieved. In order to effectively do this, various approaches in specific areas of focus are discussed in this report.