2. How to allocate local targets?

Setting the target cost for the final product is a separate issue that we will not discuss here: this target is considered a prerequisite for the CCO approach.

While calculating this target is more a matter of business case analysis, taking into account market considerations (competition, etc.), industrial strategy (make or buy, etc.) and financial margins, its distribution into local targets involves more technical aspects and logic.

The criteria used to determine this may be:

• the cost reduction potential of the technology implemented;

• the maturity level of this technology: a proven technology, carried over from the previous product generation, and therefore (in principle) already optimized, will offer less potential for cost reduction;

• ...