Value engineering is a technique which is considered a boon for the project management sector. It is very important to analyze all functions for all projects as there can be many substitute alternatives which can be considered for a project which will help us to have a better management of the construction projects. In this paper we analyzed an industrial project by dividing all the various activities of the projects into their respective functions. Further we analyzed the percentage total cost of the project with respect to their sub functions and total functions. Secondly by selecting critical elements we carried value engineering relative to their function. The project concluded by achieving 15% cost reduction and thereafter we analyzed their effects with the help of Interaction matrix. Finally by comparison of the interaction matrixes we could provide relative correlation between impact factor and cost reduction.
