Abstract: Analyzing paraffin lubricating oil production system through value engineering is an effective way to reduce production cost.Based on the characteristics of the paraf-fin production system in Nanyang Wax Fine Chemical Engineering Plant,energy consumption was selected as the study target of value engineering with ABC method.Functional areas to be improved were determined by us-ing value coefficient method.It overcame the limits of analysis simply utilizing production process and blueprint.The implementation of the innovatively improved plan re-duced production cost.