I am not sure I completely agree with them on preventative maintenance being a thing of the past in all areas. However, it is common to push off more expensive PM work or not have enough redundancy to the point that PM work gets delayed waiting for outages.
Semantics. Preventive maintenance has simply been renamed, to "deferred maintenance." As such, it gets deferred until something breaks or explodes.
A guy I used to work with nailed it, IMHO. He used to say that, "Deferred maintenance is a euphemism for intentional neglect."
That's a different animal from backup systems and redundancy. There's no question that risk management involves balancing cost against risk against consequences. The problems arise when those in the decision process adopt an "It hasn't happened, therefore it won't happen" perspective. The example of the flood design is both a good one and a bad one. Those of us "in the trenches" for designs of things subject to floods typically sit around and comment that we've had three 50-year flood events in the past five years. For anything with a projected life span of fifty years, the designers in the trenches are absolutely going to go for the 100-year design, because they know the 50-year event is not scheduled to occur next in 2061. The expression is only a probability, not a prediction. It means that past history
suggests that floods of that intensity occur only once in fifty years -- on average. But if you're the designer and you know it's been 48 years since the last one, you need to figure there will be at least one in your structure's 50-year life span. Heck, even if the last one was a month ago -- there's STILL going to be another (statistically) within the projected 50-year life span.
It's the pencil pushers who look at the numbers and decide that the 50-year design is adequate, and that the project "can't afford the luxury" of the 100-year design.
In the northeast of the U.S. we had regular examples of such thinking recently. Most municipalities used up their snow removal budgets for the entire YEAR in the first storm of the winter, because the past few years have been light on snow and the geniuses who make up the budgets looked at the numbers and said, 'You only spent $___ last year, and every department has to cut back, so this year you can only have ($___ - 5%)." The fact that the Director of Public Works has no control over how much snow falls, or how fast, is ignored.
Like the old margarine commercial used to say, "It's not nice to fool Mother nature."