Forged components comprise approximately one-third the cost of a propulsion system, and are major cost drivers for airframe systems. Traditionally, cost reduction efforts have focused on improving individual operations or steps in the value stream. A new U.S. Air Force ManTech program, Forging Supplier Initiative, has been initiated to achieve a significant reduction in cost and cycle time through improvements across the entire Supplier - OEM value stream for forged airframe and gas turbine engine components, from raw material order to the finished, ready to install component. Lean Manufacturing, which encompasses a total waste reduction strategy based on a thorough understanding of value for all manufacturing operations in the supply chain, along with forging, machining and modeling technology improvements, must be exploited to achieve the cost and cycle time reduction goals. This paper describes the Phase I approach and progress in the Forging Supplier Initiative program being performed by the General Electric - Lean Industrial Forging Team (LIFT) Consortium. The objective of Phase I, Analysis and Definition of Cost Reduction Opportunities, is to identify cost and cycle time drivers across the entire forged product value stream for representative airframe and propulsion system forgings, and demonstrate the feasibility and payoff of projects selected to address the major drivers.