This document discusses applying value engineering techniques to optimize the mechanical pencil. It begins with background on mechanical pencils and value engineering. The author then analyzes the mechanical pencil in the creative phase of value engineering. Ideas are proposed to address issues like lead breaking and increase strength/decrease costs, such as adding springs to absorb pressure and making the body from strong, lightweight plastic. In conclusion, applying value engineering principles can improve the mechanical pencil's functioning while reducing costs without compromising quality.