Dimensions are key to navigating the data warehouse / business intelligence system, and hierarchies are the key to navigating dimensions. Any time a business user talks about wanting to drill up, down or into the data, they are implicitly referring to a dimension hierarchy. In order for those drill paths to work properly, and for a large DW/BI system to perform well, those hierarchies must be correctly designed, cleaned, and maintained.
IntelligentEnterprise : Kimball University: Maintaining Dimension Hierarchies.