This paper presents the basic fundamental of value Engineering that can be implemented in any product to optimize its value. A case study of a Universal Testing Machine (UTM) 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 hardware items and thereby increasing the inventory and so on. Therefore we have selected some components from UTM i.e Hand Wheel, Range Selector Knob, Top Bearing Bracket Assembly, Dial Bracket, Recorder Gear etc. and we have applied value engineering technique for the cost reduction of these components of UTM. Therefore by Value Engineering technique, Design modification for Dial Bracket and Top Bearing Bracket Assembly, use of alternative less expensive material for Recorder Gears, Range Selector Knob and Hand Wheel is suggested in this case study and thereby which cost reduction is achieved.