Maintenance is performed to restore a system's inherent reliability. H
owever, reliability is not enough: a maintenance task must ''pay for i
tself'' in dollars or readiness. This applies to all types of maintena
nce: corrective, preventive, and alterative. We can reduce corrective
maintenance costs through preventive and alterative maintenance. We ca
n reduce preventive maintenance costs by eliminating inapplicable and
ineffecitve tasks. We must weigh alterative maintenance costs against
the value of improved readiness and cost-avoidance of future correctiv
e maintenance. The U.S. Navy is improving alterative maintenance by en
gineering for reduced maintenance (ERM). This process corrects the roo
t cause of some high-cost items by replacing the system, component, or
coating with an improved design or material. It overcomes the limit o
f preventive maintenance: higher levels of inherent reliability requir
e design improvement. The U.S. Navy is improving preventive maintenanc
e through condition-based maintenance (CBM). The Navy's CBM initiative
encompasses three parallel efforts: rules (improving maintenance requ
irements and plans), tools (using computer and diagnostic technology t
o facilitate maintenance decision-making), and schools (educating all
levels of maintenance decision-makers in reliability and condition-bas
ed maintenance engineering principles). This paper addresses how the U
.S. Navy surface ship community plans to avoid inapplicable and ineffe
ctive maintenance and reduce maintenance costs without sacrificing rel
iability.