spoiler warning
Billy constantly got approached by this man who would continually tell him that he would never leave, which was of course extremely frustrating for Billy as all he could think about was his escape.
So he told this crazy guy that he was from "the factory" and that he was keeping an eye on the bad machines, so that the crazy guy would leave him alone. It worked, he left him alone from then on.
I would like to suggest reading the book to many people who have just watched the film, you will see the film is mostly nonsense. The escape in the film is pure fiction, nothing even slightly similar happened. It wasn't even that prison that he escaped from. And Max was never even in the nuthouse with him...
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