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This depends on the engine type.
The most common engine series in the Z3 is the 6 cylinder engines with dual VANOS. They have two camshaft position sensors located on the upper front of the engine. While the sensors are (barely) visible from above if you know where to look, they are much more easily located with a small mirror.
It's common for the original exhaust camshaft sensor to fail, and that's almost certainly the reason for this question. A replacement aftermarket sensor is about $40, while a BMW branded part is about $110. A new o-ring (under $1) is good idea. This sensor takes only about three minutes to replace. You'll need a 5mm hex key to remove the single screw holding the sensor clamp. Unclip the electrical connector, unscrew the clamp, pull the sensor straight out, and reverse the steps to install.
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