To minimize the design cost of a complex system and maximize performance, a design team ideally must be able to quantify reliability and mitigate risk at the earliest phases of the design process, where 80% of the cost is committed. This paper demonstrates the capabilities of a new System Reliability Exploration Tool based on the improved simulation capabilities of a system called Fault-Augmented Modelica Extension (FAME). This novel tool combines concepts from FMEA, traditional Reliability Analysis, and Quality Engineering to identify, gain insight, and quantify the impact of component failure modes through time evolution of a system’s lifecycle. We illustrate how to use the FAME System Reliability Exploration Tool through a vehicle design case study.