Just-In-Time-processes are simplified and streamlined. ABCM was used to identify material handling as a major cost driver and the implementation of JIT lowered these costs and even helped in avoiding a physical expansion of the plant despite taking on new products.

Carrier also tapped into the workers as a source of improvement by making them responsible for workflow, quality, and throughput, as well as handling problems. This has allowed supervisors more time to better monitor and manage financial results.

Standardization - Carrier has divided the standardization process into two programs, one targeting new products and the other targeting existing products. Both seek to encourage using common parts and processes.

Strategic Outsourcing - Carrier’s main expertise is in designing air conditioning products; taking on all of the processes involved in manufacturing these products leads to too much complexity. Using ABCM, the costs of many support activities were quantified and it was found that outsourcing some activities was much more cost efficient than doing them in-house.

Supply-chain management - Supplier relationships have been strengthened, and suppliers no longer strictly supply Carrier with components. One supplier, for example, staffs the service warehouse, purchases parts, and schedules service, all more cost effectively than if Carrier did this itself. ABCM helps Carrier consider the true costs of an activity, and not just focus on the obvious costs.

Target costing - Carrier uses target costing to set product costs, and the use of standard parts and processes is key in meeting the target costs that have been established.

Performance Measures - Carrier has created an “activity dictionary” that managers use to develop benchmarks for process costs. ABCM is also used to determine profitability for each product. When a product is determined to be unprofitable, it is either discontinued or moved to another location, creating a sense of competition among the plants.

ABCM is an important function for Carrier’s improvements, because as Swenson states, “until the improvements are quantified they are not acted upon.” ABCM is the tool that Carrier relies upon to help provide it with the hard data to determine if an improvement should be made. See below for a graphic view of how ABCM and other enablers support Carrier's complexity reduction strategy which supports the higher level goals, objectives and competitive strategies of the organization.