By Charles J. Latino, President & Founder of Reliability Center, Inc.
Plant Engineering, November 1996
Every year, U.S. industry spends well over $300 billion on plant maintenance and operations. An estimated 80% of these dollars are expended to correct chronic failures of machines, systems, and people that occur daily, even hourly, in plants across the country.
Based on my experiences and observations over 40 years in hundreds of plant situations, eliminating these chronic failures can reduce maintenance costs between 40% and 60%. And that savings to industry of up to $115 billion annually can be realized without major restructuring, employee layoffs, or sacrifice of product quality. However, it does require changes in existing mindsets about how to maintain and operate facilities on a day-to-day basis.