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This paper presents an analysis of the heat Loss from insulation deterioration by applying value engineering for a boiler of a 340 MWthermal power plant under operating 29% Installed capacity. To analyze the loss of heat from insulation deterioration of the boiler,Value job plan six steps of Society of American Value Engineers International (SAVE) is applied for the thermal power plant as the following: 1) data and information collection, 2) function analysis, 3) creative, 4) evaluation, 5) development and 6) presentation. According to the research,the results show that there is a 5,295,280.21 MJ thermal loss, in case of corrective measures. Replacement insulation can reduce heat loss by 4,510,644.60 MJ at 100% output factor or 85.18% and reduce heat loss by 2,119,551.90 MJ at 46.99% output factor or 40.03% and the insulation temperature up to 60 °C. The payback period is found to be 0.32 years. Moreover, this research methodology can be applied to other power plants in the future.
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