Many methods and tools exist for continuous improvement of supplied parts in the Automotive Industry. Over the past decade BMW AG has developed close partnerships with their suppliers to ensure outstanding customer satisfaction, superior component quality and maximum supplier cost efficiency. To achieve a successful partnership, an approach was developed to improve the quality and efficiency of processes through the optimization of the entire value added chain. Whereas many programs within the Industry often focus on specific business elements, i.e. manufacturing process, quality system or logistics system, the approach taken by the BMW Group covers the complete business chain.In 1994 BMW Manufacturing Corporation, a subsidiary of BMW AG, began this same work with its North American suppliers. Over twenty-five supplier support projects have been completed over the last six years. Concurrently the approach for optimization as applied by the BMW Group has evolved to address the rapidly changing technologies and increased competitiveness in the Automotive Industry.This evolved approach necessitates a more effective analysis and optimization of processes throughout the entire business unit earlier in a new vehicle project, often before the product design is finalized. Since many costs are “designed” into the product, this approach also provides a better chance of having a greater impact on the cost of the final product. This strategy not only results in better quality and cost for the internal and external customers, but in longstanding improvements at the supplier as well.