It was the night of December 5, 2013, when Board Chairman Mr. Sun Weijie found a well logging skid with quality issues while taking an inspection tour in Jereh’s workshops. The skid failed to meet our quality standard in terms of welding appearance as well as welding details. It was even worse that the windows used were not industrial ones as required. Although no severe mistakes were made, it was still unacceptable for Jereh.

Upon investigation, it was found that the problems occurred because of the tight due date. The supplier delivered the tank for well logging skid with in a time as short as 19 days, resulting in the unsatisfying performance. Mr. Sun was really angry and swung a hammer with all his force to smash the almost-completed equipment, after which he queried Jereh’s management team loudly, “who on earth ruined Jereh’s reputation for having a-class quality?”

The next day, everyone assembled in front of the smashed equipment to attend a morning meeting. We reaffirmed the principles that if quality ever conflicts with delivery time, quality will always be top priority; and if quality ever conflicts with the cost, the same also applies.

As leading force of Jereh, the management team must impose themselves as role models who are supposed to sound the alarm for quality before anyone else does. Due to declined quality of oil and gas equipment, the management team received a 40% salary cut, as a measure intended to raise everyone’s awareness of quality and to encourage more competitive products with higher quality.