What ELGi’s Deming Prize means for North American manufacturers
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To manufacture a high-quality product, quality needs to be embedded into much more than the equipment itself. It has to be built into every process, system and decision across the entire organization.
When manufacturers compare compressed air systems, they often focus on specifications such as flow, pressure and efficiency. These are all important metrics that should influence purchasing decisions, but they only tell part of the story. They can’t tell you how an industrial air compressor will perform over the next five, 10 or 15 years. Long-term performance depends on much more than the compressor itself. Reliability, uptime, energy efficiency and serviceability are all influenced by the decisions, systems and processes behind the equipment.
With compressed air playing a critical role in operations and being widely regarded as the “fourth utility,” alongside electricity, water and gas, it’s no wonder manufacturers expect dependable performance throughout the lifecycle of their compressed air systems.
These expectations highlight the importance of quality and are a major reason why ELGi's 2019 Deming Prize win, for Total Quality Management (TQM), remains an important and relevant achievement today.
The Deming Prize
The Deming Prize is one of the world’s highest accolades for quality. It was established by the Union of Japanese Scientists and Engineers (JUSE) in commemoration of the late Dr. William Edwards Deming, an American statistician, engineer, and management consultant whose ideas on quality control and systemic management transformed manufacturing worldwide.
Rather than focusing on a specific product, it recognizes organizations that have successfully integrated quality management across their operations. The prize evaluates how quality is integrated into business processes, leadership practices, continuous improvement efforts and customer-focused activities across the organization.
When ELGi was awarded the Deming Prize, it was the first globally established industrial air compressor manufacturer outside of Japan to win the prestigious award in more than 60 years. The prize was established in 1951, and when ELGi received it in 2019, it had only been awarded to 251 organizations worldwide.
“Receiving the Deming Prize reflects our long-term commitment to quality and operational excellence,” said Brian Pahl, president at ELGi North America. “Our quality management is much more than an internal business process. It is built into everything we do, and that has a positive impact on the reliability and long-term performance of the equipment our customers depend on every day.”
Why Quality Management Matters
Not all industrial air compressors are created equal. Quality management influences how products are made and how they perform long after installation.
Strong quality management helps to create:
- Consistent product performance
- Improved reliability
- Increased uptime
- Better serviceability
These benefits can have a significant impact on operational performance when it comes to compressed air systems, as disruptions can be costly and affect production schedules, energy consumption and overall efficiency.
With this in mind, manufacturers are now looking beyond the initial purchase price and placing greater emphasis on performance and total cost of ownership (TCO). Customers are realizing that the cheapest option might not deliver the best long-term outcome.
Always Better
Across North America, manufacturers are under increasing pressure to improve productivity while managing rising energy costs and budget constraints. In this climate, reliability, efficiency and consistency are more important than ever. Working with a partner that has a company-wide commitment to quality helps manufacturers achieve the reliable long-term performance they need from their compressed air systems to keep their operations on track.
ELGi's Deming Prize recognition provides independent validation of the systems and processes that support quality, reliability, uptime and energy efficiency in the company’s products. The prize continues to influence how ELGi operates, with the approach very much aligned to the company’s vision of "Always Better."
“Always Better forms the basis of every aspect of our operations, from technology to business, service, work culture, sustainability and social responsibility,” Pahl said. “It’s about progress and adapting to changing environments, which means we are continuously refining our products and processes to improve things like reliability, performance and TCO for our customers.”
While the Deming Prize was presented to ELGi in 2019, the principles that earned itthe award continue to shape the company today. For North American manufacturers, it's evidence of a long-term commitment to quality, continuous improvement and customer-focused innovation. In an industry where uptime, reliability and TCO are increasingly important, this commitment to quality can make a significant difference to operational performance over the lifecycle of a compressed air system.
To learn more about ELGi’s approach to quality and its compressed air solutions, visit the ELGi website, where you can also contact an expert.
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