Quality Management at Woolworths: Implementing TQM Tools & Techniques

This report assesses the need for Total Quality Management (TQM) implementation at Woolworths, a major Australian supermarket chain, to enhance its competitive strength and address issues related to customer satisfaction, product quality, and technological advancement. It discusses key TQM principles such as customer focus, quality products, strategic improvement, continuous improvement, and teamwork. The report then focuses on two TQM tools: the cause and effect diagram (Ishikawa diagram) for identifying the root causes of defects and employee dissatisfaction, and the Plan-Do-Check-Act (PDCA) method for planning and addressing organizational issues. The implementation of these tools is detailed, providing a framework for Woolworths to improve its services, product quality, and overall business performance.

Running Head: TQM IN WOOLWORTHS 0
Total Quality Management Tools and Techniques
Student Details
2/4/2019

TQM In Woolworths 1
Executive Summary
TQM has become important for every organization in order to ensure quality of
services and products in todays’ competitive environment. This report discusses about the
need of TQM in one of the biggest supermarket of Australia, Woolworths. Today, as with the
advancement in technology, competition among different organizations is increasing day by
day. Therefore, to ensure quality products and services to its customers, Woolworths has
identified the need of implementing TQM. Here two tools of TQM are discussed that would
be helpful for resolving the issues and challenges facing by Woolworths. These two tools are
cause and effect tool and plan-do-check-act (PDCA) method. Implementation of these two
tools will identify the major causes of these problems and also helps in providing solution to
the problems.

TQM In Woolworths 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Need of TQM Implementation...................................................................................................4
TQM Concepts and Principles...................................................................................................6
TQM Tools.................................................................................................................................8
Cause and Effect Diagram.....................................................................................................8
Plan-Do-Check-Act (PDCA) Method....................................................................................9
Implementation of TQM Tools..................................................................................................9
Implementation of Cause and Effect Diagram (Fishbone Diagram).....................................9
Implementation of Plan-Do-Check-Act (PDCA) Method...................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

TQM In Woolworths 3
Introduction
In assessment 2, it has been discussed about the various aspect of Total Quality
Management (TQM). It considered the case study of one of the biggest retail organization of
Australia, Woolworths Ltd. As in the world of today, there is huge competition among
organizations within an industry; therefore traditional approaches used for quality inspection
are no longer helpful. Various studies have shown that the 85% of problems are associated
with system and management and only 15% are associated with technology and operation
that restricts an organization from being a quality organization (Hashmi, 2019). The best
possible way of resolving issues related to quality is practicing TQM approach in an
organization.
In order to develop a TQM approach for an organization, it is first required to identify
the basic problems that an organization is facing. In assessment two, basic problems that
Woolworths is facing are mostly customer-oriented such as supply chain management, idea
of giving preferences to customers, ease in product production for customers and maintaining
the quality of the produced product. Some of the problems that are associated with
technology were also identified in the study which is due to the advancement in technology;
various mobile applications are in practice which made Australia to promote cashless
transactions (Woolworths, Quality Assurance, 2019).
Various quality gurus have developed different prepositions in TQM field. Although,
these gurus have different views on quality but also share some similarities in their views.
Even after a lot of research in TQM implementation has conducted, still this topic is a subject
of debate (Dhandapani, 2009).

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Need of TQM Implementation
In the previous assessment, there are several issues were identified that Woolworths is
facing today. Implementation of TQM is important in order to eliminate those problems and
to ensure continuous improvement in the performance of Woolworths. TQM will enhance the
competitive strength of Woolworths (MSG, Importance of Quality Management, 2019).
There are some key issues which Woolworths need to focus on in order to improve quality of
Woolworths’ product. Below is a list of benefits that implementation of TQM will provide
for Woolworths:
1. Customer Satisfaction: As mentioned above, Woolworths adopted the idea of
achieving customer satisfaction with providing customers with ease of product
production at supermarkets and high quality of products for the customers. Also as
mentioned above due to the advancement in technology, customers are demanding
cashless transactions more. Therefore, it has become important for Woolworths to
adopt and implement TQM approaches to meet the above set expectations of the
organization and the customers (Smartsheet, 2019). Customer satisfaction is important
because a satisfied customer feels good about the deal of purchasing a product or
service. Satisfied customer ensures long- term relation with organization and loyalty
is developed. Loyalty is dependent on the customer satisfaction which in turn depends
on the quality of service (Persentationeze, 2019). If company will start focusing on
earning customer loyalty, it will automatically motivates organization to develop
quality product for the customer and thus then company can give tough competition to
other competitors.
2. High Quality Services and Products: A product’s quality is measured in terms of
reliability, performance, and durability. Quality of product is important parameter for
the organization because it is what that is making Woolworths different and ahead of

TQM In Woolworths 5
its competitors. Implementation of TQM will result in adopting new processes and
changes in system that eventually leads to quality product production (Anzalone,
2019). Also quality products enhance customer satisfaction which is the key objective
of Woolworths. It is essential for big brands like Woolworths to maintain its
reputation by providing quality products to its customers. a quality product will make
sure that organization will survive a cut throat competition with a smile (Garvin,
1987).
3. Higher Productivity and Increased Revenues: Implementation of TQM will ensure
higher productivity and increase in revenue for the organization. This is explained as
implementation of quality management tools results increased customer satisfaction
which then results in increase in business of organization, which further results in
increase in cash flow for Woolworths (Juan Ding, Jie, Parton, & Matanda, 2014). An
employee earns when his organization is earning, therefore increase in cash flow for
Woolworths make it possible to provide better services for its employees. Happy
employees are more motivated towards their job and thus results in higher
productivity (MSG, Total Quality Management - Meaning and Important Concepts,
2019).
4. Technology Advancement: Implementing TQM results in changes in processes and
systems. New and advanced technology will be used to meet the customer
requirements. This eventually again results in customer satisfaction. Advancement in
technology also results in ease of doing work for employees and thus employees’ time
will be saved for more productive works instead of wasting it on traditional way of
doing work (Ali & Khatoon, 2016).
Therefore, from the above discussed points it is clear that, Woolworths requires TQM
implementation to enhance its services, product quality, customer satisfaction, employee

TQM In Woolworths 6
satisfaction, higher productivity, increased revenue growth, advancement in technology, and
to sustain in the today’s tough competitive market.
TQM Concepts and Principles
Above discussion provided why TQM implementation is important for Woolworths. This
section is describing what are the changes, concepts or principles that can be implemented in
order to achieve the above mentioned objectives. Here are some principles of TQM which
will help Woolworths in achieving its business profits:
1. Focus on Customer: This involves production and designing of product in way that
meets or exceeds the expectations of customers. Woolworths is largest supermarket in
Australia, and has the most of the responsibilities to provide better services to
customers. Woolworths can achieve this through implementing range and pricing
strategy which includes low prices, offers, improved range of products, enhanced
loyalty system, and a strategy to improve the value of its own brand. Second strategy
involves refurbishment of existing stores and developing new stores which involves
renovation of 80+ stores per year and development of 20-30 stores per year to meet
the increased demands of customers (Ali & Khatoon, 2016). Third strategy involves
better experience and new product delivery for customers, which are achieved by
creating new divisions in Woolworths that provide new product categories and
fostering relationships with primary partners of Woolworths. Fourth strategy involves
providing services to customers through online portal and for this Woolworths has to
develop Click and Collect locations. Fifth and last strategy in order to improve
customer satisfaction involves performance and people measures. To achieve this
strategy, there is need of placing better scorecards in every store that measures the

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performance of in-store teams (Woolworths, Woolworths Food Group’s plan to get
customers to put us first, 2019).
2. Quality Products and Services: This involves quality will be put on priority during
the production and delivering of a product. It means that quality will be built into the
production and delivering processes and continuous improvement measures will also
be taken into consideration to ensure its continuous operation. To ensure quality
services to customers, Woolworths can adopt the strategy of empowering employees
to take decisions in order to improve a process and providing them with frequent
training to enhance their skills. Second thing that can be done in this process involves
inclusion of purchasing department in client purchase data evaluation to determine the
product which is most popular among customers (Woolworths, Woolworths Food
Group’s plan to get customers to put us first, 2019). This will help in tracking what is
in more demand and which is the least demanded product. Third strategy involves,
monitoring of websites continuously by technicians of information technology to
track weather customers are just browsing or making purchases actually. IT team will
also keep track of time taken in making billing and rectify faults if any occurs
(Chandra, 2013).
3. Strategic Approach to Improvement: This strategy will help Woolworth in
developing and testing the quality of products or services. This involves making sure
that suppliers are providing quality products in order to produce and deliver quality
products. Reviews on the quality of product can be best provided by a customer only
(Kadian-Baumeyer, 2019). Therefore, purchasing department should be given the
responsibility of monitoring the reviews of customers and thus making sure that
ratings of a product on website are similar to those of actual customers’ ratings.

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4. Continuous Improvement: Analysis of work continuously is important to make sure
that the work is performed in the way it was supposed to perform or according to the
set parameters. This is also important because it provides opportunities for identifying
more efficient and effective ways of producing and delivering services and products
to the customers. This also provides scope of making improvements in the products
and services and achieving excellence every time (Mohd Yousf & Aspinwall, 2000).
For this, well qualified employees are needed and it is and will be the responsibility of
human resource department to recruit suitable candidate for the job posts. With well
qualified and trained employees, it is easy to provide best services to customers and
thus also enhances customer satisfaction.
5. Fostering Teamwork and Mutual Respect: Team members of an organization from
top to bottom should work as a cohesive team. Woolworths is a very large
organization which has several different divisions. To effectively run such a large
enterprise working of its employees together is very important. Each employee has a
sense of respect for every other employee and a better understanding between them is
required (PennState, 2019). This also represents culture of an organization and set an
example of cultural excellence to customers and thus more happy and satisfied
customers. One way of improving and fostering teamwork and mutual respect is
adopting inter-departmental approach.
TQM Tools
There are large numbers of TQM tools available. In the previous assessment, two
quality management tools were identified that are best suited for resolving issues and making
improvements in quality of Woolworths’ products and services. These tools are: cause and

TQM In Woolworths 9
effect diagram and the other is plan-do-check-act (PDCA) method. These tools are described
as follows:
Cause and Effect Diagram
This method is also known as Ishikawa diagram and it was created by Kaoru Ishikawa
in order to describe the cause of a particular event. In order to identify the defective products
of Woolworths’, this method is best suited. As to deliver quality products to the customers, it
is important to identify defective products. In addition to that, this tool also has the potential
of identifying causes of employee dissatisfaction (Cliffsnotes, 2019).
Plan-Do-Check-Act (PDCA) Method
As described from the name, this method is helpful in planning to address the
identified issues or concerns of an organization. Issues that are hurdles for Woolworths as
identified above includes meet the changing demands and quality of products, employee
dissatisfaction, customer dissatisfaction, cohesive teamwork and mutual respect. This method
also helps in monitoring and implementing the necessary steps required to improvement in an
organization at the same time (Arntz-Gray, 2016).
Implementation of TQM Tools
Implementation of Cause and Effect Diagram (Fishbone Diagram)
This method only focuses on finding the root cause of a problem and not a solution for
that problem. There can be number of causes for a problem; this method identifies the root
cause of the problem through the process of brainstorming. In Woolworths, a list of problems
identified includes customer satisfaction, quality of product and service, and technology
related issues (Garza-Reyes, Rocha-Lona, & Kumar, 2015). Now, this method will identify

TQM In Woolworths 10
the root causes behind these problems. Customer satisfaction is related with quality services
and products. Steps involved in identification of causes of these problems involve:
 Method: A customer can be dissatisfied when methods used to handle customers at
the stores are not up to the level (Persentationeze, 2019). Products are not attached
RFID tags for the billing purpose which is time consuming.
 Men: Also, in-store employees lack in providing information needed by customers.
The main cause of this problem is because employees are not qualified and trained
properly (Woolworths, Woolworths Food Group’s plan to get customers to put us
first, 2019).
 Material: Another reason of customer dissatisfaction is defective products at the
store. Main cause behind this problem is due to RFID tags are not attached with the
products.
 Machines: Also, insufficient billing counters and outdated billing machines are
another reason of customer dissatisfaction. Billing softwares are outdated which
works very slowly. These needs to be replaced with latest softwares (Persentationeze,
2019).
 Technology: Customers are also dissatisfied because of no options available for
cashless transactions. Still traditional methods are using in stores of Woolworths for
accepting money, whereas customers want enhanced and latest methods for making
payments (Melsa, 2009).
Implementation of Plan-Do-Check-Act (PDCA) Method
PDCA, in contrast to cause and effect diagram not only determines the cause of the
problem but also provides the solution for that problem and also enables monitoring of the
method.

TQM In Woolworths 11
Source: (Techtarget, 2019)
In this method TQM process is divided into four categories: plan, do, check, and act. This
method of TQM will identify employee dissatisfaction and thus play an important role in
effective strategic planning to enhance satisfaction level of Woolworths’ employees.
Dissatisfied employees of an organization will never be able to satisfy its customers
(Techtarget, 2019). Hence, it is important for Woolworths to identify the reasons behind its
employee dissatisfaction and finding solutions that promote employee satisfaction. Following
steps of PDCA method are helpful in resolving this issue:
 Plan: An analysis have identified that employees at Woolworths are dissatisfied due
to proper training required in order to provide better services to the customers and
also company has no procedure of rewarding its employees who perform well or there
is absence of effective rewarding policy at Woolworths.
 Do: The management authority of Woolworths should take proper steps in order to
improve employees’ satisfaction level. Effective strategies need to develop to promote
employee satisfaction. Employees should be provided proper training before deploy in
stores and also frequent training sessions as per the changing demands and technology
in market. Secondly, better performing employees should be appreciated and

TQM In Woolworths 12
rewarded to boost their morale and to encourage other employees to perform well
(Woolworths, Woolworths Food Group’s plan to get customers to put us first, 2019).
 Check: Effectiveness of these solutions will be checked through comparison of
results data before and after of solution implementation. To confirm its effectiveness
first implement this strategy on small scale.
 Act: Once it is verified that the proposed strategy is effective then only implement it
on large scale.
Also this method provides solution to the problem which is identified in cause and effect
diagram of requirement from people of Australia to buy products in exchange of card or cash
money (Arntz-Gray, 2016). This method provides solution to this problem is implementation
of scan and go technology. Here, scanning of mobile is enough to make payments for the
items purchased and this technology is implemented effectively with the help of PDCA
method.
Conclusion
This report provides the study of Total Quality Management for Woolworths’
organization. Assessment 2 has identified the area of improvements and some issues that
need to be resolved in order to ensure TQM for Woolworths. This report discusses about the
detail study of why there is need of TQM for Woolworth which are identified as customer
satisfaction, high quality services and products, increased productivity and revenues, and
advancement in technology. Second, what are the TQM principles, concepts, tools, and
techniques that would be helpful for Woolworths’ business and there are five principles of
TQM that need to be implemented to enhance the quality of Woolworths’ products and these
are focus on customers, quality product and services, fostering team collaboration,
improvement in strategic approaches, and continuous improvement in processes. Finally,

TQM In Woolworths 13
report identifies two tools of TQM that will be helpful in resolving issues of Woolworths
which are cause and effect diagram and the second is plan-do-check-act (PDCA) method.
Implementation of these two tools provided the key causes behind these issues and provided
effective solution to resolve the problems which are improving customer satisfaction through
advancement in technology, reducing employee dissatisfaction through providing proper
training and rewards to them.

TQM In Woolworths 14
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