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The growing complexity of powertrain control strategies, software, and hardware is proving to be a significant challenge to the engineering community with regard to managing effective optimization to meet the desired performance. With an increased emphasis on shorter development time and the use of additional sensors and actuators becoming common, the increased dependence on physical models and use of complex interdependent control systems demands a thorough system understanding. This also encourages the use of process improvement tools to assist in an effective engineering process. In this paper, such a tool is discussed in its second phase of development. The Micro-HiL system will be discussed over a wide scope that focuses on the interests of the calibration and development community. The purpose of this paper is to provide an update on the Phase 2 activity of Micro-HiL development; Phase 1 was discussed in-depth at the 2011 SAE World Congress [2011-01-0703].