Value engineering is a proven tool for reducing costs and increasing the value of the products. This has a direct bearing on improved competitive position in the marketplace and increased profit margins. This project describes the implementation of this tool for an oil pan design in IC engine. Value engineering for the Oil pan aims in reducing the complicated manufacturing by virtue of the process and also by effective utilization of raw material, which directly results in reduction of material & process cost. The simplified manufacturing process will effectively improve the production rate by reducing the time taken to manufacture the product. To find the best possible alternative from the choices we have incorporated a tool named as Decision Matrix. Decision Matrix gives the most appropriate result and is even easy to use. The selected alternative method is modeled with Pro Engineer tool and is simulated in analysis tool like NASTRAN to justify the achieved vibration properties.