Reliability-centered maintenance (RCM) is a cost-effective type of maintenance which focuses preserve system function rather than system hardware. One of the methodology of reliability-centered maintenance (RCM) which is FMEA used to identify failure modes, their causes, and the associated impact on the system. The main purpose of this study is to criticality evaluate and identify the risk using risk priority number (RPN) and reduce the risk associated with higher failure modes by introducing a reliability-centered maintenance policy. According to the RCM philosophy, all equipment within the system is not equally important. Because of this reason the criticality of based on certain reliability based criteria. There are several reasons for loss of the productive machine time but maintenance problem contribute 68% (102 hr/day) of the total machine down time. The results show that the spinning section Carding C-60H1, Ring frame G-35 and Open end R-923 WMRA were the most critical machines. Therefore reliability centered maintenance methodology shows economic advantage from reduced risk by taking FMEA on these three critical equipments and focusing on the vital few 20% cause of the identified failure modes. The proposed program shows that labor the cost decreased from 238,138Birr/year to 164,070Birr/year (about 31.5% of the total labor cost) for the reliability centered maintenance (RCM). In addition, the proposed program indicates that 28.12% of the annual spare parts cost is saved when proposed reliability centered maintenance planning other than current Run to failure maintenance of the BDTSC.