On April 2007, "Company B" purchased electric wires from "Company A". Due to "Company A" did not follow the requirements and criteria on quality and environmental protection strictly in production, so what electric wires offered by "Company A" to "Company B" had a serious problem in quality. At that time, most enterprises only had a superficial knowledge of environmental protection instead of actual understanding of its importance. So, the wires ordered were not sent to SGS for inspection, while used in production directly. After finished the processing, "Company B" delivered products to their client "Company C"; unfortunately "Company C" trusted it thoroughly and accepted the products without any suspect, used these materials offered by "Company B" to produce finished products. Until the finished products were exported to USA were the connecting wires in the finished products detected to be failing to meet the environmental protection standards. It brought a very serious loss to "Company C" as much as RMB 7 million Yuan or more. "Company C" decided to prosecute against "Company B" directly, asking "Company B" to pay the compensation of RMB3.4 million Yuan. But "Company B" was unable to pay this big amount of compensation, at the end "Company B" had to close in bankruptcy.

The above example is a very good lesson.

For an enterprise, how much does it know about the quality of its products? What elicitation is brought by the above example to us?

For an enterprise, what direct impacts does the quality of its products bring to the life span of it?
How big is the hazard?

For an enterprise, will it go to bankruptcy due to the quality problem? So, "Quality makes safety, creates value for science and technology" is the soul of ETOP.


January 25th, 2010