ISO 9001 Every organization would like to improve the way it operates, whether that means increasing market

share, driving down costs, managing risk more effectively or improving customer satisfaction. A quality management system gives you the framework you need to monitor and improve performance in any area you choose.

ISO 9001 is by far the worlds most established quality framework, currently being used by 1,064,000 organizations in 178 countries worldwide, and sets the standard not only for quality management systems, but management systems in general. It helps all kinds of organizations to succeed through improved customer satisfaction, staff motivation and continual improvement. ISO 9001 is one of a series of quality management system standards. It can help bring out the best in your organization by enabling you to understand your processes for delivering your products/services to your customers. The ISO 9001 series of standards consist of:

ISO 9000 Fundamentals and Vocabulary: this introduces the user to the concepts behind the management systems and specifies the terminology used.

ISO 9001 Requirements: this sets out the criteria you will need to meet if you wish to operate in accordance with the standard and gain certification.

ISO 9004 Guidelines for performance improvement: based upon the eight quality management principles, these are designed to be used by senior management as a framework to guide their organizations towards improved performance by considering the needs of all interested parties, not just customers.

Who Requires IS09001?

ISO 9001 is suitable for any organization looking to improve the way it is operated and managed, regardless of size or sector. However, the best returns on investment come from those companies that are prepared to implement it throughout their organization rather than at particular sites, departments or divisions.

In addition, ISO 9001 is designed to be compatible with other management systems standards and specifications, such as BS OHSAS 18001 Occupational Health and Safety and ISO 14001 Environment. They can be integrated

seamlessly through Integrated Management. They share many principles so choosing an integrated management system can offer excellent value for money.

RIL- Jamnagar is an ISO-9001 certified company and our project is based upon the study of the quality management system of the company which is in direct relation with the ISO standards.

Reliance Industries Ltd (RIL) is Indias largest private sector company listed in the Fortune Global 500. In spite of having the worlds best technologies, it had suffered from low employee participation in improvement activities and low customer satisfaction. In their pursuit of business excellence, they have observed the effectiveness of TQM in many Indian companies. The company then decided to use TQM to increase its efficiency and sent its employees for training skills that would help in increasing its productivity and quality. Starting with three persons sent in 2002 for introduction of TQM, approximately 50 senior managers and executives have been trained in Japan by AOTS so far. As a result, customer focus approach and kaizen activities have widely spread and brought about significant results to quality and productivity improvement and customer satisfaction across the organization. Factors which forced RIL-JAMNAGAR to change its strategy and employee TQM RIL-JAMNAGAR commenced production from the year 1991. During the period 1991 to 1998, various plants were commissioned and 16 products had entered the wide market, catering to thousands of customers with a variety of applications. In spite of having the worlds best technologies, various deficiencies were observed in the systems and practices adopted. These included low employee participation in improvement activities, low employee morale, low customer satisfaction, high incidences of customer complaints, high delivery cycle time, poor skills and team work, high number of accidents, etc. In Its pursuit of attaining business excellence, RIL had started benchmarking with the worlds best-proven TQM models and it was decided by the top management to implement the Japanese system of Total Quality Management across RIL. Reliance HSE-Management System

HSE Procedures

There are sixty clearly defined work procedures covering all aspects of HSE that constitute an important part of RILs HSE management framework.

HSE Annual Plans

Exactly on the lines of the annual business plans which are the drivers of the year-round business performance, HSE annual plans are drawn clearly laying down performance targets, action plans and budgets.

Training

Full-fledged facilities have been provided for classroom as well as field training. Regular training, mock drills and refresher programmes, covering various aspects of HSE and updated from time to time are conducted to train a wide cross-section of employees as well as contractors' personnel.

HSE training, provided during the last year, included about 35,000 man-hours, 60% of which covered contractors' personnel working in Reliance's complex.

Monitoring and Audit

An integrated system of review ensures that HSE performance is reviewed against the planned targets on a regular basis at various levels and frequencies including the monthly review at the apex level in the complex.

Apart from the monitoring and review, all HSE work procedures and practices are constantly subjected to rigorous audit, both internal as well as external. External auditors include international companies such as Shell.

Last year, a total of 370 HSE audits were carried out in addition to 300 special HSE inspections.

LEADERSHIP: leadership includes how the companys leaders address values, directions and performance expectations as well as focus on customers, innovation and address its public and community responsibility. RIL has been an example of fine leadership amongst other Indian companies and has been very particular about its social responsibilities Special attention is given to the public and community responsibilities which also includes responsibilities toward environment and which is an important aspect of the Baldridge quality award. Not only this leadership also includes innovation and learning which the key to success for any organization is and RIL is one of the few companies which takes an extra foot forward to empower their employees through knowledge.

Research & Development, Technology Development and Innovation

Research & Development (R&D), Technology Development and Innovation continues to be an integral part of RIL's agenda for achieving growth, business profitability, sustainability and rural transformation. The Reliance Technology Group (RTG), created by consolidating various research and technology functions is helping create enhanced value delivery by leveraging all the skills and competencies, and creating new opportunities at the interfaces. RTG continues to get external perspectives from members of the Reliance Innovation Council (RIC).

Key objectives of RTG are as follows:

Develop fit-for-purpose and sustainable technology and its application. Provide effective project support and assurance to manufacturing plants and businesses. Provide technical assurance to projects including technology selection and absorption. Proactively identify and support technical opportunities to add value across RIL's businesses. Develop technology strategies suited to create business growth and offset threats. Balance technology sourcing by a flexible strategy of smart buying, fast customization and flagship development of key technologies.

Exploit synergies cutting across technologies/disciplines. Improve technical productivity on a continuous basis. Develop / recruit staff with skills and motivation to meet current and future business needs.

Create a fit-for-purpose process centric organization. Ensure long term technical health of RIL businesses. Manage technology and Intellectual Property (IP) assets for the Company.

RTG continues to support improvements in manufacturing operations, e.g., through the implementation of advanced process control.

In refining R&D, the major technology focus is on maximizing desired product yields from Fluidized Catalytic Cracker (FCC), enhancing recovery of higher value products from distilling units, and on increasing efficiency and reliability of refinery processes by using advanced tools, e.g., computational fluid dynamics. Efforts are also under way to develop new processes to widen operating window for crude processing.

In the petrochemicals area, RTG is providing technology support to olefin crackers, polymers, fiber intermediates, Linear Alkyl Benzene (LAB) and polyester. In the polymers area, RTG is working on strategic technology for high performance polyolefin products such as Biaxial Oriented Polypropylene (BOPP) and Impact Polypropylene through innovation in catalyst systems.

RTG is also working on the development/commercialisation of new products e.g., oxygen barrier polyester resin for packaging, material for fruits/vegetables preservation and low cost Antimicrobial Polyester. In addition, RTG is working on emerging technologies such as fuel cells, carbon fibers, bio-fuels and gasification of various feedstocks.

Some major ongoing/completed projects include:

Maximizing light olefins yields. Expansion of testing and pilot plant facilities in refining. Technology development to process cheaper and heavier crudes. Computational Fluid Dynamics (CFD) studies for trouble shooting. Molecular modeling in blending and feed characterization. Value addition by upgrading of coker streams.

Process development for co-monomers from ethylene. Material development for enhancing shelf life of fruits and vegetables. Development of new grades of elastomers. New Purified Terephthalic Acid (PTA) technology development. Catalyst recovery from Crude Terephthalic Acid (CTA) residues. Development of a regenerable adsorbent for removal of olefins in Benzene, Toluene and Xylene (BTX) streams.

Development of a dehydrogenation catalyst for LAB. Development of a polyolefin catalyst precursor. Development of catalyst ligands for the production of disentangled ultra-high molecular weight polyethylene.

Development of High Melt Strength (HMS) grades of polypropylene. Development of low pill polyester in the continuous reactor. Development of full dull dope dyed polyester. Development of new catalyst systems for bottle-grade resin productivity enhancement. Finishes for specialty products in polyester.

RIL continues to participate in various collaborative projects in India and overseas.

The RTG has joined the New Millennium Indian Technology Leadership Initiative (NMITLI) project on indigenous fuel cell technology development as the sole industry partner. The work will be a collaborative effort with Council of Scientific and Industrial Research (CSIR) laboratories including National Chemical Laboratory (NCL), Pune, to demonstrate Proton Exchange Membranes (PEM ) fuel cell technology over the next two years. Another initiative with NMITLI is in the area of conversion of bioglycerol into value added chemicals.

Creation and protection of IP is becoming a core activity at RTG. Systems and processes have been build to effectively protect the know-how, innovations, and knowledge generated by the staff. As per RTG's mission, the Company will continue to create business value and competitive advantage for RIL by applying (buying,

customising, developing) the right technology, at the right cost, and at the right time to meet the current and future needs of RIL through the following initiatives:

An integrated, central technology organisation to support RIL businesses and manufacturing facilities. A sustained high performance work culture which fosters innovation, entrepreneurship, inclusiveness, teamwork and continuous improvement.

A process centric organisation that maximizes synergies across all interfaces, leverages core competencies of various disciplines to maximise value from current assets and creates new growth opportunities, while allowing people to develop and contribute to their full capabilities.

Innovation

In a challenging year of demand destruction and the global financial crisis, RIL was resilient and continued to innovate to convert the adversity into an opportunity. RIL launched an innovative initiative called "Mission Kurukshetra" aimed at galvanising and energising the entire organization to rise to the occasion and help RIL emerge stronger.

The focus of this initiative was on extreme efficiency, value maximisation to serve the new market conditions and safety and reliability of assets. The employees responded overwhelmingly by pouring in a record number of ideas over a specially built business excellence tool which operated on the Information Technology (IT) backbone.

This initiative not only helped in surmounting the challenges with a will to win, but also identified serial ideators, who were recognized and rewarded by the leadership of RIL. The Leading Expert Access Program (LEAP) which gives access to global thought leaders continued to inspire the people of RIL. Nobel laureates, industry captains and thought leaders enthralled and enlightened communities with their experiences of life and work.

The year culminated with the meeting of the RIC, which was organised in Jamnagar in January 2010. "Value creation through innovation" was the theme for this meeting. The meeting witnessed Nobel laureates such as Professors Lehn and Grubbs, global strategy leaders such as Professor CK Prahalad and leading thinkers such as Professor Whitesides and Dr. Haseltine work along with the Chairman Dr. Mashelkar, Mr. Mukesh D. Ambani and

the leadership of RIL in defining the RIL of the future and lay out roadmaps based on the unique positioning of the Company.

The Reliance Innovation Leadership Centre (RILC) continues to serve the RIC and builds on the innovation agenda drawn up to make RIL one of the most innovative companies in the world. It has lined up some exciting and highly innovative initiatives that will take innovation at RIL to the next level. RIL continues its quest to make innovation a way of life and ensure that the next generation of growth is innovation led.

Public and community responsibility Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.

The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner that excludes considerations of personal advantage.

We do not lose sight of these values under any circumstances, regardless of the goals we have to achieve. To us, the means are as important as the ends.

For Reliance

Growth is care for good health

Reliance's occupational health centers carry out pre-employment and periodic medical checkup as well as other routine preventive services. Specialized tests like biological monitoring, health risk assessment studies and audits for exposure to various materials are also performed. Health education and awareness form an integral part of the health care program at Reliance

Growth is care for safety

Reliance believes that the safety of each employee is the responsibility of the individual as well as of the whole community of employees

Growth is care for the environment

Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the larger community to which they belong. Environmental protection is an integral part of the planning, design, construction, operation and maintenance of all our projects.

Growth is betting on our people

Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to explore and learn; and there are opportunities that inspire initiative and intrinsic motivation. We believe that people must dream to achieve, that these dreams will drive the company's excellence in all its businesses. Reliance thinks, behaves, lives and thrives with a global mindset, encouraging every employee to reach his / her full potential by availing opportunities that arise across the group.

Growth is thinking beyond business

As corporate citizens, we invest in social infrastructure, believing strongly that our business strength fuels our social contributions. To this end, Reliance encourages, funds and develops numerous education, health, human capital and infrastructure initiatives. These initiatives are undertaken through partnerships with non-governmental organizations, corporates and trusts.

STRATEGIC PLANNING: It involves that how a company develops strategies and objectives and what actions are taken to achieve those action plans and measuring the progress is very important as progress is the indicator that the strategy is working as it should have been or not and in case the results are not what were desired the desired modifications should be applied. RIL has a very thought upon and vast strategic planning infrastructure. According to letter to shareholders and companys website RIL's strategy includes:

Building and sustaining leadership position across its product categories in the domestic markets;

Pursuing attractive export opportunities; Implementing vertical integration; Improving its technology; Achieving economies of scale; Focusing on prudent financial management; and Investing in high growth opportunities.

In the petrochemical and refining business, RIL's strategy is to:

Strive for global leadership and to be amongst the lowest cost producers worldwide; Continue to invest in research, quality, safety and the environment; and Pursue inorganic growth opportunities, which are strategic to its intents and will have the potential to create greater value for its shareholders.

Looking ahead, RIL will make strategic decisions with regard to its "emerging" businesses, these include:

Identifying new businesses with high growth potential; Investing in businesses that can scale rapidly and generate returns over an extendable period of time; and Aspire to be the lowest cost manufacturer/service provider, which it believes will result in RIL gaining "dominant market leadership".

Financial highlights: RIL, year ended 31 March

2010 Sales (Rs in Crore m) Net Profit (Rs in Crore m) Total Assets (Rs in Crore m) 200,400 16,236 251,006

2009 146,328 15,309 245,706

2008 139,269 19,458 149,792

2007

2006

118,354 89,124 11,943 9,069

117,353 93,095

Diluted earnings per share (Rs in Crore m) Number of Employees 1crore=10million 1usd=45inr

-23,365

101.00 24,679

133.90 25,487

82.20 24,696

65.10 12,540

CUSTOMER AD MARKET FOCUS : For any company to survive and flourish it is very important to give importance to the customers and learn about their requirements and expectations and it is very vital to understand the market and competition. RIL is known for its relation with the customers and its high loyalty towards its customers and stakeholders, not only this they are constantly coming up with new and modern innovations keeping the market focus in mind. RIL has incorporated latest technology to assist its customer and to benefit them to the extent as possible Customization of Transportation Solutions

Dedicated Customer solutions team Solutions design to address o o o Compatible vehicle selection Mode of Transport Routing

Adapting our processes and capabilities to suit your needs Performance measures ( KPI) Identified and Documented

Pioneering Technology Initiatives unique to the Transportation Industry

VTS (Vehicle Tracking Systems) o o o

Real time tracking of freight movements and accurate forecasting of vehicle arrivals GPS + GSM technology would capture & send location data of the vehicles GIS data: location data of the vehicles are superimposed on standard maps and routes across the nation, to enable tracking of consignments.

o o

Round the clock vehicle position status from the time of loading until unloading Real time control over shipment delivery cycle times

TMS (Transport Management software) o o o

Optimizations tools & decision support software system Integration of VTS with TMS providing seamless information flows Total software solution for the entire gamut of transport functions from receipt of order till submission of bills and freight realization

An Optimization tool and decision support system with focus on Load planning Route optimization capacity / space utilization

o o o o

Controlled logistics and Distribution management resulting in better services Better placement efficiencies and order fulfillment. Service level improvement through planning & monitoring Overall cost effectiveness

Lotus notes connectivity across all operating arms of Reliance Logistics (P) Ltd.

Special Contingency policy with New India Assurance Co for risk cover o o o o o o Natural calamities viz Storm, Cyclone, Flood, rainwater etc Other hazards viz Fire, Riots, strike, Terrorism and criminal act Theft Burglary Pilferage Contamination

MEASUREMENT,ANALYSIS AND KNOWLEDGE MANAGEMENT : this section involves how a company gathers, analyses, manages and improves his data, information and knowledge assets. RIL has a very vast knowledge management system which helps them to analyze and manage the information which is gathered. RIL uses SAP A ERP software to gather and analyze the data. They also have a fully functional MIS department which gathers all the data and analyzes it for future refrences.

Reliance Knowledge Management System: The KMS implemented by RIL now has more than 100,000 knowledge documents and acts as reference for most workers. KMS has all the features of an advanced document management system, surveys, forums, Wiki, personal planner, key utilities and much more which helped create a sense of bonding amongst employees. The KMS is fully operational and being used by 22,000 unique users of Reliance.

RIL knowledge Management also includes training new and old members on latest techniques and practices

Measuring Learning Function Inter-Site Learning Center Meets -Organized twice a year, and are chaired by Chief Learning Officer. This is a platform for Learning function professionals, to share innovative ideas implemented in the sites, with the Learning fraternity. inter-site Discipline Specific Meets -Periodic meets are hosted by manufacturing sites, wherein representatives from all Sites meet to discuss problems faced and solutions obtained, for benchmarking with the best practices in other sites. MIS Reports -Monthly reports are generated to report the progress of learning activities for the relevant period. These reports highlight the Learning hours registered under the categories -Soft skills, technical, Health, Safety, and Environment etc. Management Review Meetings -Management Review meetings are chaired by the President and participated by members drawn from the senior management.

HUMAN RESOURCE FOCUS OR WORK FORCE FOCUS : This category examines how an organizations work systems and employee learning and motivation enable employees to develop and utilize their potential for the good of the company . Also the organizations efforts for employee welfare are taken Into consideration in this. RIL has been very particular about workforce welfare since it believes that happy workforce is the wealth of the organization

PROCESS MANAGEMENT

six sigma

With focus to attain zero defects reliance started six sigma project in 2004

Excerpts from the Annual Reports of Reliance Industries Limited: FY 2009-10: 105 Six Sigma projects were completed leading to financial benefits (annualized) amounting to Rs. 55 crore. Presently, 439 Black Belts and Green Belts are associated in Six Sigma projects at different sites. For the success of the projects, 1,896 team members and supervisory personnel are providing active support. To further embed Six Sigma and develop cadre of Reliance certified Black Belts (RCBB) across locations, RCBB development plan was launched at each site. Reliance certified Black Belts will have the knowledge and skills to do complex projects and also guide, coach and train others in executing Green Belt (GB) projects. FY 2008-09: 63 Six Sigma projects were completed leading to financial benefits (annualized) amounting to Rs. 67 crore. Presently, 528 Black Belts and Green Belts are associated in Six Sigma projects at different sites. For the success of the projects, 1,896 team members and supervisory personnel are providing active support Three of RILs Six Sigma projects were rated as the top three projects at the 50th year celebrations of the Indian Statistical Institute, Bangalore in March 2005.

One Six Sigma project at Hazira has won an award at the American Society for Quality conference held at Seattle in 2005. By March 2006 we plan to train about 40 percent of our supervisory staff in Six Sigma methodology. This will motivate them to work towards achieving world-class performance. In turn, this is expected to bring about increased satisfaction for the customer and the shareholder.

They are incorporating new techniques to improve the quality of their products. During the year, several new initiatives were taken to improve and strengthen quality management systems at the sites. At the newly acquired RPCL facility, QA/QC systems were put in place at the time of plant start up - resulting in reliable results from the start.

Total Quality Management was introduced in all the laboratories at Jamnagar. The 5 S program was introduced at laboratories for inventory and document management. The Jamnagar laboratory received recognition on the analytical front from CEMILAC (Centre for Military Airworthiness and Certification) for its high level of Quality Confidence and Control Measures.

Inter laboratory testing across the Reliance group has been made a regular feature to monitor the reliability of analytical services.

Suggestion schemes have been introduced to encourage the involvement of all employees in quality related activities - eighteen employees received awards. Reliance's efforts on the quality front continued to receive recognitions. Benefits from six sigma to RIL

14 projects were taken up on improvements in Productivity/ Reliability/ Product Quality, reduction in Waste & cost of production. Benefits realized were US $ 0.8 million in 2007.