Qa Processmanual

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General MerchandiseQuality Assurance

Operating ProcedureManual

2010

Version: V15


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CONTENTS

Quality Vision Scoping Framework................................................................................3

2.0 Quality Vision......................................................................................................33.0 Quality Mission....................................................................................................34.0 Determining the QA Level for each product ........................................................3

4.1 Brand Assessment..............................................................................................44.2 Vendor Assessment Guidelines ..........................................................................44.3 Classifying the product risk .................................................................................44.4 Risk Rating by Level............................................................................................5

5.0 Category/Product Standards...............................................................................66.0 Trading Terms.....................................................................................................77.0 QA & Ethical Sourcing Audits..............................................................................78.0 Product sample Assessment............................................................................... 7

9.0 3rd Party Testing.................................................................................................710.0 GMQA Activities & the Woolworths Ltd Risk Framework....................................811.0 GMQA Process Level 4 Nightwear and limited daywear..................................912.0 GMQA Process Procedures - Level 4 Nightwear and limited daywear..............1013.0 GMQA Process Level 2 Nightwear and limited Daywear ...............................1814.0 GMQA Process Procedures - Level 2 Nightwear and limited daywear..............1915.0 GMQA Process Level 1 & 2 National Brands .................................................2216.0 GMQA Process Procedures Level 1 & 2 National Brands..............................2317.0 GMQA Process Level 3 & 4 Products ............................................................2418.0 GMQA Process Procedures Level 3 & 4 Products .........................................2519.0 Roles and Responsibilities for GMQA Activities ................................................2920.0 Reporting of Results.......................................................................................... 3021.0 Pre-shipment Inspections..................................................................................3022.0 Product Audits...................................................................................................3223.0 Customer Complaints........................................................................................ 3224.0 Artwork/Packaging ............................................................................................3225.0 Ongoing Product Review................................................................................... 3226.0 Supporting documentation ................................................................................3327.0 Product samples................................................................................................3328.0 Finished Assessment Samples .........................................................................3429.0 Target Response Time......................................................................................34

30.0 Charging............................................................................................................ 3431.0 Recall & Withdrawal Procedures.......................................................................3532.0 QA Teams.........................................................................................................3633.0 AUS GMQA Contacts (02) 888 - etxn................................................................3634.0 Hong Kong QA Process ....................................................................................3735.0 HKQA Contacts (852) 3604 - etxn.....................................................................3736.0 QC@DC ............................................................................................................3737.0 Process Review.................................................................................................3738.0 Terms and Definitions .......................................................................................3739.0 Big W GMQA Internet Quick Links....................................................................3840.0 Attachments ......................................................................................................39


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Quality Vision Scoping FrameworkThis document provides background and context to the Woolworths Limited General MerchandiseQuality Assurance (GMQA) Framework. This outlines the methodology employed to ensure thatWoolworths Limiteds product safety risks are being appropriately managed in line with our commitment

to quality assurance and compliance. Products within this scope include Childrens Nightwear andlimited daywear, apparel, shoes, electrical, homewares, and all other hardgoods categories.

This framework adopts a risk based approach to QA where products are categorised into 4 Levels withthe degree of QA and assurance activities varying from Levels 1-4. Brands, products and vendorsdetermined to be higher-risk will be subject to more QA and assurance activities than those with lowerrisk.

In addition, this document outlines the Quality Assurance Assessment, Testing and Compliance Auditingprocess for Big W and Woolworths General Merchandise products. This document is not exhaustive.Please refer to accompanying QA manuals and processes listed throughout this document as supportreferences, including the Design & Textile Manuals, Manchester Manual, Packaging and LabellingManual.

2.0 Quality VisionTo enable our customers to have complete trust in the quality and therefore, the value of the productswe sell at Big W and Woolworths.

3.0 Quality MissionTo influence the quality of products by increasing the technical involvement in the product developmentlifecycle, earlier.To minimise product risk, by providing technical, safety and regulatory expertise while operating withinlegal and regulatory boundaries.

4.0 Determining the QA Level for each productA decision tree has been developed to assist buyers in determining the appropriate QA Level requiredfor their intended purchase. The QA Level is determined by three components of risk: the brand, thevendor and the product.

Classifi cation Framework Decision tree


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It is important when considering the risk of the vendor that this is done with the specific product in mind for example a vendor may be very reputable but if they are new to producing the product in question(and it is very different to their traditional products) then more rigorous QA and assessment activities willbe necessary.

4.1 Brand AssessmentIn the first instance, if the product is going to be branded for one of the Woolworths Limited Groupbusinesses (Wow Ltd Brand), it will always be subject to the highest level of QA because,notwithstanding that we maintain that all levels of QA will be rigorous, the risks for Woolworths Limitedand our Brand are higher in this scenario. The following are classified as a WoW Ltd Brand forWoolworths Limited Group businesses:

A product branded or labelled with one of the Woolworths Limited Group businessnames ie Woolworths or DSE.

A product carrying a licensed, control, house or exclusive brand or label for aWoolworths Limited Group business ie Abode, AWA, Essentials, Allsorts, Dymples.

If the product is going to be sold under the vendor brand and is not exclusive to a Woolworths Limited

Group business then the QA Level will be driven by the risk of the vendor and product.

4.2 Vendor Assessment Guidelines

Vendors who are recognised positively in the Australian market or industry will typically be deemed alower risk vendor.

The following criteria will be applied in a making this assessment:

Whether:

the vendor supplies this product to other major Australian retailers (K-Mart, Target, Myer,Bunnings, Officeworks, J B Hi Fi, Toys R Us etc)

the vendor can demonstrate that they have a quality assurance, compliance and monitoringprogram in place

the vendor can demonstrate that they have a crisis management program (including proceduresfor product recalls) in place

the vendor has not received any recent negative press in relation to product quality ormanufacturing practices

the vendor has not been the subject of any regulatory activity, legal or enforcement action

the vendor has their factories audited (for quality and ethical practices).

If the product is going to be sold under the vendor brand and the vendor is deemed by us as being

positively recognised in the Australian market, then the product risk will be the next consideration todetermine the QA Level and whether that product and vendor will be included on the Woolworths LimitedNational Brands Register.

4.3 Classi fying the product risk

Any product that is either subject to safety standards, or subject to a product specific standard undereither the Trade Practices Act or various Commonwealth state and territory legislation, will be typicallyclassified as having a higher risk. There are also some products that Woolworths Limited considers to behigh risk not withstanding that they are not specifically legislated. These will also be classified as HighRisk for QA purposes. Product risk should be confirmed with GM QA prior to orders being placed.

All Product Standards in place as at J uly 2009 have been assessed using the decision point Is the

product subject to any Big W or regulatory product safety standards? to determine whether they areHigh Risk or Non High Risk (refer to Woolworths Limited Product Standards Classification).


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The Product Standards have also been mapped to the Product Ranges purchased for to a WoolworthsLimited Group business. Where a particular Product Range references a number of Product Standardswhich are both High and Non High Risk, the entire Product Range is classified as High Risk.

The table below summarises the vendor and product profiles of each Level and provides an example.

Level Vendor and Product Characteristics Examples

Level 1

NationalBrands

Vendor branded product,

Product is produced by a vendor with apositive reputation in the Australian market /industry for producing that product, and

Product is not in a high risk category.

Loreal, Pantene, Huggies

Omo, Coca Cola, Gillette

Dunlop Sporting Goods

Bonds Apparel

Level 2

NationalBrands

Vendor branded product,

Product is produced by a vendor with apositive reputation in the Australian market /industry for producing that product, and

Product is in a high risk category.

Bonds & Osh Kosh Nightwear

Lego Toys

Sony Televisions, DVDs

Fisher Price Nursery Toys

Imgram Micro agent for Canon& Logitek

Level 3 Vendor branded product,

Product is not produced by a vendor with apositive reputation in the Australian market /industry for producing that product, and

Product is not in a high risk category.

Gardening Tools

Stationary

Tea Towels & Napery

Kitchen Utensils

Level 3 Private Label/Corporate Branded exclusiveProduct or licensed to Woolworths Ltd.

Product is not in a high risk category

Essentials, Scribblers, Allsortsunderwear, Pink Sugar, WaveZone, House x Home.

Patio Outdoor furniture andgarden tools produced by J amieDurie

Level 4 Private Label/Corporate Branded exclusiveProduct or is licensed to Woolworths Ltd.


Allsorts Childrens Sleepwear,Dymples Zipp, AWA, HomeCollection & Abode electrical,Tinkers.

Level 4 Vendor branded product,

Product is not produced by a vendor with apositive reputation in the Australian marketfor producing that product, and


Fitness equipment

Toys

Gift with Purchase attached toany product regardless of parentproduct/vendor level.

Classifi cation Framework Vendor & Product

4.4 Risk Rating by LevelFor each QA Level, the inherent risk has been determined in the following categories: Product Safety,Financial, Reputational and Legal. The inherent risk is the risk that exists to the Woolworths LimitedGroup business if no QA activities were completed. The residual risk is that remaining after a degree ofQA assessment and activities are completed.

The inherent risk determines the type of QA activities required, how often they need to be completed andby whom. The risk increases as you move across the QA Levels from 1 to 4 and therefore more QAactivities are required to reduce the residual risk to acceptable levels. The table below summarises theinherent and residual risks of each of the Levels for each of the risk categories. Where the residual riskis Medium or above, management need to make a business decision to determine whether or not thislevel of risk is acceptable.


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6.0 Trading TermsIn addition to the specific financial rebate and settlement agreements, Wooloworths Ltd requires allvendors to sign General or Harmonised Trading Terms. These are located athttp://www.bigw.com.au/vendors/index.html followed by BIG W Vendor Trading Terms and TradingTerms Supporting Links. (Ctrl +click)

7.0 QA & Ethical Sourcing AuditsAll Woolworths Ltd. Vendors are asked to comply with our Ethical Sourcing Policy. All Level 3 & 4Private Label Vendors will be required to have their factories audited for insight into both quality andethical trading practices. Each audited vendor will be given a status: Approved, At Risk or aConditionally Approved with a Corrective Action Plan (CAP) for non conformances that arise from theaudit. It is recommended that product will not be purchased from a vendor that is at risk. All buyersover time are responsible for ensuring their vendors have been through the audit process.

Woolworths QA facilitate the audits and the CAP. The Woolworths Audit Manager can be contacted [email protected]

Refer to Ethical Sourcing Policy: http://www.bigw.com.au/vendors/index.html followed by BIG WVendor Trading Terms and Trading Terms Supporting Links. (Ctrl +click)

8.0 Product sample AssessmentFor Level 3 & 4, GMQA will undertake an assessment of the submitted product sample using appropriateinternal assessment methods, standard test methods and judgement to ensure that Big W andWoolworths products will meet requirements. These assessments can take the form of the following:

Product Safety Legal Compliance Fit for purpose/functionality

Packaging Assessment Identification photographs may be taken of the submitted product sample and attached to the

relevant QA ID number Validation and investigation of 3rd party test reports refer 9.0

Please refer to 27.0 and to the GMQA Activities and the Woolworths Risk Framework in section 10.0 formore details on samples required for assessment.

9.0 3rd Party TestingWoolworths Ltd requires vendors to acquire relevant testing against Australian Standards and legislationto be done by independent testing facilities allowing for shorter lead times and reduced cost of goods.The AUSQA & HKQA facilities are not fully equipped to carry out all relevant testing. Demonstrated

compliance to specifications, safety, chemical and flammability testing needs to be carried out byexternal accredited test companies and relevant reports submitted. Refer to the specific CategoryStandard for required test reports (5.0).

Big W/Woolworths will only accept test reports from the following testing houses:-

SGS Qualspec Bureau Veritas

Intertek (ITS) ITACS RMIT

AusTest Laboratories EMC Technologies Comtest

Testing and Certification

Australia (TCA)

TQRTM Ningbo Quality

Assurance****All reports are to be emailed directly to the Vendor from the test laboratory (not the factory)and then to the Big W buyer/MA, WW AA/BM or HKPO QA in their original PDF format with a cleardescription and clear identifi cation of all product reference number/keycode at the time ofsubmiss ion. All keycodes associated with the test are to be listed on the test report.


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10.0 GMQA Activities & the Woolworths Ltd Risk Framework

3/03/2010Woolworths L td. Risk Framework levels

Level 1NationalBrand

Level 2NationalBrand

Level 2SleepwearNationalBrand

Level 3

LowRiskVendor

Branded

Level 3

LowRiskPrivateLabel

Level 4 *

HighRisk

VendorBrand

Level 4

HighRisk

PrivateLabel

Level 4

Licensed &PrivateLabel

Sleepwear

Vendor Approval

Signed trading terms

Commitment to Quality inVendor Guide

Quality & Ethical SourcingAud it

Pre -Order

Product Standards

Product Specifications

Pre-Production

Bronze sample submission

Vendor initiated 3rd PartyTesting

Buyers Silver samplesubmission

QA Assessment of Silver &Test reports

App rovalsPackaged & Hard GoodsNewline Committee (hangeredgoods exempt)

Production

Gold Sample Assessed by QA

Pre-shipment Inspection

DC

QC@DC

Stores

Store Operations & CustomerComplaints

QA Annual Reviews

National Brands Annual Audit

of compliance to standards

RP Product annual QA review

* Where WoW Ltd is involved in design or specification bronze is required. If not; silveronly required.


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11.0 GMQA Process Level 4 Nightwear and limited daywear


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12.0 GMQA Process Procedures - Level 4 Nightwear and l imited daywear

QA Activit y Role Action requiredSupportingdocumentation

Document Location Additi onal N

Vendor Compliance WOW Website Document o

expectation Buyer Submit unaudited vendor detailsto WQAWQA facilitates forms to besubmitted by vendor.

Audit Template Documents held byWOW QA

Woolworths Ethical Sourcthese are do

Woolworths QA

Assess outcome of audit andaccredit vendor or CorrectiveAction Plan

Audit Report includingcorrective action planif required

Outcomes awith CAP. Quality Quality Regula Factory Inspect Produc Docum

Vendor Book audit by 3rd party

certification body.

1.0 Product ranging and

vendor accreditation

3rd partycertification body

Perform audit and send resultsback to WQA

2.0 Keycode generation Buying Generation of the keycode inSFRCheck the accuracy of sampleand documentation.Preparation of bronze sample incorrect base fabric size andcomponents. Ie. Correct weightcomposition and fabric type.

Bronze sample. Bronze samComponents

Artwork for printsmotifs appliqus andintended fire categorylabelling

Allowed excproviding thascale.An accurate Artwork neegrading of aFire category

3.0 Bronze submissio n.Fit and Design sample

Vendor

Intended labellingincluding thefollowing: care andcontent labellingcountry of originlabelling and brandlabelling"

Labelling wil


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Preparation of the requireddocumentation

Submission form andsubmission ticketcompleted in full

Submission forms canbe found in the annexof the QA StandardOperatingProcedures(SOP)

Submission can make coform.

Graded spec sheet Spec sheet fmandatory mVendor musthe sample o

Style sheet/storyboards

No 3rd partyyears test re

Submit physical sample tobuying.

Vendor -Continue

Submit documents to buyingelectronicallyCheck the accuracy of sampleand confirm the submissioninformation to the sample andthe order

As above Documents daywear is t

Submission of bronzesample/documents viadatabase

DepartmentDocument Library

Refer to Qua

Keycodes (Childrens nightwearand limited daywear only) are tobe linked to the submission

DepartmentDocument Library Refer to QuaKeycodes. before they

Buying

Physical submission of thebronze sample to QAdepartment

Buying depasoftgoods ra

Submission form andsubmission ticketSpec sheetBronze sampleStyle sheet/storyboardsArtwork for printsmotifs appliqus firecategory labelling.

Fire Categor

3.0 Bronze submissio n.Fit and Design sample -Continue

QualityTechnician

Intended labellingincluding thefollowing: care andcontent labellingcountry of originlabelling and brandlabelling"

Labelling wil


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Sample assessed forcompliance with all mandatorystandards.Sample assessed forquality.

QA test report Mandatory-Astandards (Cpractices Acis to be escaManager anChildrens niunless it com

Finalised QA assessment report Report is plaFinalised Qabase.

SoftgoodsComplianceSpecialist/QualitySpecialist

Sample sealed and stored Representatand silver sa

When required, send additionalsamples away to 3rd partytesting house for flammabilitytesting.

Submission requestto 3rd party testinghouse

Receive additional flammabilitytest reports from 3rd partytesting house.

Test report from 3rdparty test house.

5.0 Gold submiss ion.Production Sample -Continue

SoftgoodsComplianceSpecialist

Submission of reports viadatabase and assess reports forcompliance.

Report is left

Prepare pre shipment pack Sample andallow pre sh

delay.Pre shipmenPreshipmentconsolidation

Protocol includinginspection and reportrequirementsSealed silver sampleSpec and gradesheet.Completed 3rd partypre shipmentinspection bookingform

Advise factory to commenceproduction

MOP/BOI

Vendor

To book preshipment inspectionwith 3rd party testing house

Preshipmentinspection bookingform

Arrange preshipment inspectionwithin 2 weeks of bookingensuring that goods will be 70-100% complete.

Silver sample andpreshipment pack.

Inspection wcomplete.

6.0 Production /Preshipment inspection

3rd party testinghouse

Ensure the preshipmentinspection report is send directlyto Quality specialist cc thevendor.


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Review preshipment inspectionreport, resubmit and attach tothe QA ID in data base andrelease the goods for shipment.

Preshipmentinspection report.

Cargo shippapproval fro

Finalised QA assessment report Silver sample.

6.0 Production /Preshipment inspection- Continue

Quality Specialist

QA assessmentreport.

Item is place

7.0 DC Inspection QC@DC

inspectors

Verify gold sample and pre

shipment inspection report havebeen assessed and meetrequirements

QA assessment

report

No level 4 Ch

X-Docked.

Randomly selects products tobe audited through season.

Store Audit inspectionsheet


Sample testslocal stores trisk of defect

Visit a selective BIG W orWoolworths store.Products are purchased throughIST if non-conformance isidentified.Submit product/s to QA via databaseAssess product/s againstmandatory standards andregulations.

8.0 Store Aud its QualityTechnician

Finalise QA assessment report. Finalised QAcompliance Receive complaint and detailsfrom customer

Complaint form

Obtain faulty sample andcomplete sample from store.

Buying

Submit samples/documents toQA via data base.

Make speciasubmission

Sample assessed for safety andcompliance with all mandatorystandards.

9.0 CustomerComplaints

QualityTechnician

Finalised QA assessment report Finalised QAbase.


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13.0 GMQA Process Level 2 Nightwear and limited Daywear


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Randomly selects products tobe audited through season.


DepartmentDocument library

Sample testslocal stores trisk of defect

Visit a selective BIG W orWoolworths store.Products are purchased throughIST if non-conformance isidentified.

Submit product/s to QA via databaseAssess product/s againstmandatory standards andregulations.


Finalise QA assessment report. Finalised QAcompliance s

Receive complaint and detailsfrom customer

Complaint form


Buying


Make specialsubmission r



QualityTechnician



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15.0 GMQA Process Level 1 & 2 National Brands(not including Nightwear & Limi ted Daywear)


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16.0 GMQA Process Procedures Level 1 & 2 National Brands(not includ ing Nightwear & Limited Daywear)


Document Location Additio nal N

1.0 Vendor Ranging Buying Buying will review range withvendor

2.0 Keycode generation Buying Keycode generation and loadinginto SFR Keycode is eKey code autRandomly selects products tobe audited through season.



Sample testslocal stores torisk of defect



Finalise QA assessment report. Finalised QA

compliance sReceive complaint and detailsfrom customer

Complaint form Make speciasubmission r


Buying

Submit samples/documents toQA via data base.Sample assessed for safety andcompliance with all mandatorystandards.


QualityTechnician


Randomly selects keycodes tobe audited through season.Send letter to vendor requesting3rd party test reports for the

randomly selected keycodesSubmission of documents viadatabaseDocuments assessed forcompliance with all mandatorystandards.

5.0 Annual Aud it (Level 2Only)

ComplianceSpecialist

Finalised QA assessment report


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17.0 GMQA Process Level 3 & 4 Products (not including Nightwear & Limi ted Daywear)


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18.0 GMQA Process Procedures Level 3 & 4 Products (not includ ing Nightwear & Limited Daywear)

QA Activit y Role Action requiredSupporting

documentationDocument Location

Vendor Compliance WOW Website Document ou

expectation fBuyer Submit unaudited vendor details

to WQAWQA facilitates forms to besubmitted by vendor.

Audit Template Documents held byWOW QA

Woolworths Ethical Sourcthese are doOutcomes arwith CAP.

Woolworths QA

Assess outcome of audit andaccredit vendor or CorrectiveAction Plan

Audit Report includingcorrective action planif required

Quality aspe Quality Regulat Factory Inspect ProductDocument C

Vendor Book audit by 3rd partycertification body.

1.0 Product ranging and

vendor accreditation

3rd partycertificationbody

Perform audit and send resultsback to WQA

2.0 Keycode generation Buying Keycode generation and loadinginto SFRCheck the accuracy of sampleand documentation.

No 3rd party

Preparation of bronze sample incorrect material, size andcomponents.

Bronze sample. Bronze sampComponents

Artwork for prints,motifs, appliques andlabelling.

Allowed exclproviding thascale. An acc

Submission form

completed in full

Submission forms can

be found in the annexof the QA StandardOperatingProcedures(SOP)

Vendor can m

submission f

Specification sheet Spec sheet f

Preparation of the requireddocumentation

Style sheet/storyboards

3.0 Bronze submission.Initial sample (Apparelonly)

Vendor

Submit physical sample tobuying.


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QA Activit y Role Action requiredSupporting

documentationDocument Location

Labels Labels are toexception artattached muand will be aorigin inform

Photos taken and placed in database as attachment.

QualityTechnician -continue

Finalised QA assessment report QA assessment

report

QA data base If appro

product Passed

need to Finalise

data ba

4.0 Silver Submission.Pre-production sample -Continue

Buying Collection of silver sample fromQA Exit room or softgoodsoutrack.

Sample is to report status

Verify any mandatoryinformation.

QA assessmentreport

Perform Quacorporate bra

7.0 DC Inspection QC@DCinspectors

Carry out inspection as per DCprotocol.

DC InspectionWorksheet

QC@DC is tothe QA data Note: Random

onlyRandomly selects products to

be audited through season.

Store Audit inspection

sheet

Department

Document Library

"Sample test

local stores trisk of defect


8.0 Store Aud its Quality

Technician

Finalise QA assessment report. Finalised QAcompliance s

Receive complaint and detailsfrom customer

Complaint form


Buying


Make specialsubmission r



QualityTechnician



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19.0 Roles and Responsibi li ties for GMQA Activi ties

Role Responsibilities for GMQA Activities

Buying Liaising with vendors to ensure that Trading Terms are agreed Nominating new vendors and liaising with vendors to gain agreement for Quality & Ethical Sourcing

Audits Developing Product Specifications in conjunction with Quality Specialist

Submit Newline samples to QA with all required 3rd party test reports

Organise a sample and updated test reports for annual RP line assessments

Liaise with customers and vendors in relation to customer complaints

QualitySpecialist

Assist buyers/vendors with product development and accreditation of factories.

Assist in the technical process of samples with buyers and vendors

Developing Product Specifications in conjunction with the Buyers

Assist in the development of the style guides in conjunction with Buyers

Determining risk-rating of products and vendors with Mandatory Compliance Specialist.

Facilitate and assess Pre-shipment Inspection Reports and then release shipments .

Ensure all seasonal, RP, XD, SD products are assessed annually.

MandatoryComplianceSpecialist

Assist with the compliance aspects of the style guides.

Conduct a second mandatory check on silver samples that have had the initial Bronze and Silver checkapproved.

Validate 3rd party test reports on a random auditing basis.

Conduct the final approval check on the gold sample.

Ensuring that 3rd Party Certification Companies are appropriately qualified and resourced to complete thetesting required.

Conduct mandatory audit assessments on production samples both internally & by 3rd party testinglaboratories.

Preparing and Maintaining Category Standards in conjunction with Group Compliance Ensure all mandatory seasonal, RP, XD, SD products are assessed annually.

Handle compliance inquiries from the DC and elevate to Quality Specialist.

Determining risk-rating of products and vendors

Ensuring that 3rd Party Test Houses are appropriately qualified and resourced to complete the testingrequired.

Reviewing test-houses to determine who has appropriate capabilities to complete pre-shipmentinspections

Legal Drafting Trading Terms Drafting Trading Agreements

Regulator communication

CorporateGroupCompliance

Central repository of Category Standards.

AUSGM QA/HKPO QA

Determining Functionality Testing procedures and checklists

Completing all Functionality Tests, Design specs checks, labelling and assessments of 3rd Partylaboratory tests.

Completing testing on products which are the subject of complaints

Maintaining the QADB

Ensuring vendors understand and have appropriate documentation ie Product Standards, Manuals andspecifications

Handle assessment inquiries from the DC and elevate to Quality Specialist.

Store Audits performed and product assessment if required.


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Role Responsibilities for GMQA Activities

DistributionCentre

For high risk and Private Label products, check to ensure:

o Carry out mandatory assessments if pre-shipment is not conducted

o Ensure that test reports and assessments are complete and passed.

o Pass or fail inspections and communicate results to buying & QA

Store Managers

Checking that packaging of products on the shelf are intact Ensuring that staff are aware of customer complaint and returns procedures

Providing Customer Services with customer complaints.

Sending products to AUSGM QA when complaints are made

20.0 Reporting of ResultsProducts in QA reports will be assigned statuses based on the assessment results.Newline Level1 and 2NationalBrands

Level 1&2 vendors are exempt from QA newline Bronze & Silver assessments. All keycodessubmitted to the QADB will automatically gain the QA approval in the SFR after automaticvalidation from the National Brands Register stored in the QADB. Woolworths referencecodes are approved in CASS by the BMs.

Al l level 2 vendors are subject to potential spot audi ts and annual reviews todemonstrate compliance capability to the Category StandardsWIP Work inProgress

Items requiring more work or further reports prior to Pass condition are assigned a WIPstatus.

Pass withOSC OrderSignedConditionally

The product is not approved but an order is allowed to be placed subject to any outstandingnon mandatory 3rd party test reports from production being received and approved.Responsibility lies with the BM/buyer to cancel the order if the test reports fail. Under nocircumstances should an OSC product be despatched from the supplier to the DC

Pass with DCInspection

Any Level may have a DC inspection; however, all vendor and exclusive/own brand labelproducts categorised as Level 3 or 4 will have full GMQA assessment with DCinspection/check.

Pass Item has met all QA requirements and is ready for SFR and New Line Committee approval.

Fail Item has not met all/any QA requirements

21.0 Pre-shipment InspectionsAll Sleepwear and Limited Daywear products will require a pre shipment inspection. Inspections will not takeplace unless the goods are 70-100% complete and/or packed. It is recommended the pre shipment inspectionstakes place at the factory for speed of rework execution if required.

All inspections are at the factory/vendors expense.

The Quality Specialist will seal the approved silver sample and return it to the local vendor in person byappointment or returned to the interstate vendor by courier. The Vendor is to complete the Pre-shipmentInspection request form to advise the 3rd party inspection company of the planned production dates and book theinspection.

Inspection results will be emailed/faxed directly to the 3rd party auditors office and communicated with theVendor & Quality Specialist before the auditor has left the factory. A passed report will be approved to bereleased immediately. A fail on mandatory/critical or major components of the audit will require the full report tobe sent to the Quality Specialist the following day.

If rework is required a subsequent inspection may be required to assure the goods.

Refer to the Pre-shipment Protocol and Report in links.


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22.0 Product AuditsWeekly product audits are conducted within a Woolworths Supermarket or Big W store by a GMQA auditor.

The purpose of product audits at store:- To avoid risk to customer from unsafe products, defective or non-compliant products Assist customers by providing products with clear, true information Avoid litigation from injured or generally dissatisfied customers Avoid prosecution by regulators Avoid the cost of dealing with non-compliant product as an emergency

Product category areas are rotated according to need and urgency. For example: to detect departures from original approval review customer returns and complaints examine National Brand items that may never have been checked by QA regular category review cycle or anniversary of product on shelf review products that may be non-compliant as a result of changes in standards, legislation, policy and

production variations.

The Process: All products regardless of NBR status, are subject to audits.

If the product passes assessment, no action will be required. If a product is found to be defective or non compliant, the product is purchased and submitted to GMQA

for assessment. Woolworths Ltd reserves the right to charge vendors for assessment, testing and freight

and corrective action will be required. Summary of audit reports are circulated to the buying teams to build knowledge surrounding the

compliance of categories and vendors.

23.0 Customer ComplaintsThe process below identifies the customer complaint flow. Store/Buyer/Business Manager/Customer Services receives information on a faulty item and the faulty item. Store/Buyer/BM to log complaint with Customer Services for incident recording. Buyer organises product and the relevant information to be submitted to GMQA for assessment. Customer

complaints relating to products are to be accompanied by the customer complaint form with the details of thecustomer complaint. The form needs to be completed in full in order for QA to effectively deal with thecomplaint. All customer complaints will be dealt with as a matter of priority.

If the product passes assessment, feedback/results are conveyed to the relevant party. If the product fails assessment, corrective action will be required. QA will often contact customer to extend our concern for their complaint, check their safety and to gather

more information as to how the incident occurred.

24.0 Artwork/PackagingAll product samples should be accompanied by artwork/packaging and submitted through the QADB.

Refer to Product Standards for required labelling requirements. Thelink

will

be:

www.wowlink.com.au/TopicCentre/StandardsCompliance/ProductStandardsLink to QA Packaging and Labelling Summary Guidelines http://www.bigw.com.au/vendors/index.html followed by BIG W Vendor Trading Terms and Trading TermsSupporting Links. (Ctrl +click)

25.0 Ongoing Product ReviewAll existing products in the range need to be reassessed on an agreed periodical basis either annual or seasonallyaccording to the risk. The new QA database generates a report based on the QA approval anniversary on amonthly basis.

All ongoing products are required to be resubmitted for testing when:-

Annual review due Change of supplier or factory Change of specifications Change in legislation for mandatory lines Certification and Approval numbers expire


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26.0 Supporting documentationWhen an item is submitted for assessment and it cannot be fully assessed in-house, additional documentation isrequired.

Some examples as follows.Childrens Sleepwear & Limited DaywearPerformance reports

Attachment reportsFlammability: flame spread and surface burnLabel durability reportsPackaging & Labelling

Electric fan:Instructions

Safety test reportsDeclaration of conformityPackaging & Labelling

High visibility garment:Illuminance and chromaticityPackaging & Labelling

Toys:Parts 1-4 including Toxicology test reportPackaging &Labelling

Cosmetics:MSDS report

Sporting and Gym Equipment:Safety Standard labelling and reports

Ceramics:Lead and Cadmium heavy metals reportsPlastic food storage:Food Plastics Test to FDA or EU

Manchester Textiles:Performance reportsPackaging & Labelling

Apparel TextilesPerformance reportsAttachment reports

Nursery Equipment:Safety Standard test reportsPackaging & Labelling

Swimwear:Sun protection reportPackaging & Labelling

High visibility garment:Illuminance and chromaticityPackaging & Labelling

These examples above do not cover all categories. See Category/Product Standards for specifics.Link: Thelinkwillbe:www.wowlink.com.au/TopicCentre/StandardsCompliance/ProductStandards27.0 Product samplesAll assessments require a sample of the intended product. If finished goods are not yet produced, artwork is alsorequired. If an assortment under one keycode/reference number, all varieties are required for assessment.Below is an example of the sampling flow. Not all products require all stages: refer to 10.0.


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28.0 Finished Assessment SamplesUpon assessment completion, all product samples (except some small mandatory products and own labelproducts) will be available for collection.

Hardgoods from the QA sample/meeting room Softgoods from the out queue racks and shelves, along side the laundry. HKPO A silver pre-production sample will be submitted to the buyers for approval.

Mandatory sleepwear samples and documents are kept by QA for a minimum of 1 year 2 seasons.All other reports will be kept in hard or soft versions by QA for a minimum of 2 years.EMC compliance folders are kept by QA during the sales duration of the product and 5 years thereafter.

If the product samples are not collected within 7 working days, the product sample will be disposed of at thediscretion of QA via sample sales or donations to charity.Some product samples will be damaged during the course of its assessment and will not be suitable for sale /photography / general use.

29.0 Target Response Time

GMQA anticipates an average working day turnaround for Level 3 & 4 assessments from the date of eachsubmission to status approval to be:-

Category Average DaysAssessmentDuration (hrs)

Toys 2.0 0.5 to 1.0Appliances & Electrical 3.0 2.0 to 4.0

Large Bulky Goods 2.0 2.0 to 4.0Fit/Design - Bronze 1.0 2.0Textiles - Silver 1.0 2.0

Small non- mandatory items 1.0 0.1 to 0.5Mandatory products +1.0 4.0

Turnaround times are dependent on the items in the queue prior to submission as well as the nature of the item.Assessment duration applies to one person carrying out the assessment. Some items will require more than oneperson. Please note these are assessments of 3rd party test reports not in house testing. If testing is required,durations will be longer. Note: the working clock begins from 9.30am. If physical samples are not in thesubmission queue by 9.30am the status of WIP will be returned to the submitter and the submission will need toresubmitted and join the bottom of the queue.Peak seasons may incur longer turnaround periods i.e. Toy Sale, Christmas testing, Chinese New Year, andseasonal submissions.

30.0 ChargingFor Big W, charges are levied on suppliers in order to recover some of the costs incurred in carrying out theassessments and is reviewed from time to time in accordance with managements view of the fee structure interms of costs and inflation. Woolworths Supers are cross charged a nominal monthly fee for service. Vendorsare charged by Woolworths Supermarkets, not GMQA.

Big W invoices are issued directly to suppliers by QA and fees are collected via the Accounts Department.

Charges do not apply to products directly imported by BIG W or to suppliers on the National Brand Register.Charges do not apply to Gold Sample assessments, QC@DC or approvals of Pre-shipment inspections, unlessfound to be non-compliant.

National Brand Vendors will be charged for audit and testing if goods are found to be non-compliant.

These charges are for both testing and assessment of 3rd party certification testing. GMQA has moved towards

all independent testing and will continue to assess 3

rd

party test reports and perform fit for purpose assessments.


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Hardgoods & Softgoods 3rd

Party assessments

Testing CategoryTypical

ProductsCharge excl GST

($)Charge inc GST

($)

Minimal Assessment 0.0 - 0.5 hours $25.00 $27.50

Intermediate Assessment 0.51 1.0 hours $50.00 $55.00

Standard Assessment 1.0 2.0 hours $120.00 $132.00

Extended Assessment 2.1 +hours $250.00 + $275.00+

Charges for assessment

Vendors are encouraged to submit pre-production (silver) samples with artwork and packaging and all testreports for one assessment to obtain the minimal rate.

Testing is conducted according to BIG Ws requirements for ranging products. For certain Hardgoods items where extensive time and effort is needed to assess the line, there may be an

additional negotiated charge. Re-submissions will involve an additional charge not exceeding the above amounts and is determined by the

extent of repeat checking and reporting.

31.0 Recall & Withdrawal ProceduresThe Big W process for conducting a recall may be accessed at:http://www.bigw.com.au/vendors/index.html followed by BIG W Vendor Trading Terms and Trading TermsSupporting Links. (Ctrl +click)

Woolworths Supers Link ishttp://www.wowlink.com.au/wps/portal/topic_centre?WCM_GLOBAL_CONTEXT=/cmgt/wcm/connect/Content%20Library%20-%20WOWLink/WOWLink/Topic%20Centre/StandardsCompliance/ProductRecall/ProductRecall

There are three categories of a BigW withdrawal or recall:Remove from Show - An item has been identified as posing a risk to consumers, or there is another issueregarding legality, for example, licensing. The product may or may not subsequently be recalled. Removingthe item from show is immediately implemented to prevent any further sales, and isolate the product pendingfurther investigation and communication. Products removed from show may be returned to stock,permanently withdrawn, or withdrawn and recalled, depending on the outcome of the investigation.

Product Recall - (Vendor Managed) - This would be the result of a serious health, safety or legal issue beingidentified with a product. Products are recalled to reduce the level of risk and minimise potential harm toconsumers. The recall may be initiated as a result of a complaint, as a recommendation from BIG W, at therequest of a regulator or by the Vendor. The formal process will be carried out by the Vendor. BIG Wsinvolvement may be limited to returning stock to the vendor and displaying recall notices or may be involvedin collecting returned products.

Product Recall - (Items imported by BIG W) - The reasons for conducting the recall are the same as thosein the Vendor Managed Recall, but the responsibility for advertising, collecting, modifying or destroying stocklies with BIG W.

The process should be initiated by the buyer using the Recall Template for Elink Request

Big W Link: (Ctrl +click)http://prodnet/bigw//DepartmentSites/Quality%20Assurance/05%20-%20Product%20Withdrawals%20and%20Recalls/BIG%20W%20Product%20Recall%20Template%20for%20Elink%20Request.lnk


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Recall & Withdrawal Procedures

32.0 QA TeamsThe department has been established with both Hard and Softgoods teams depending on the nature of theproduct. Assessments are not conducted in the department according to BigW or WW teams. Some items requiredual department assessments due to the multiple facets of the products or Gift with Purchase (GWP).

Hardgoods (HG) Softgoods(SG) Products requir ing both HG & SGToys Fabrics Some soft toysSporting All clothing Kids shoes with additionsKitchen ware plastics & ceramics Shoes, Belts, Wallets Camping sleeping bags

Electrical Manchester CostumesHardware & Tools Clothes with fashion jewelleryFurniture Clothes for children under 3Nursery equipment Fabric bagsHome ware ie blinds Gift with PurchaseJ ewellery

33.0 AUS GMQA Contacts (02) 888 - etxnJ acqueline Negline-Smyth Quality, Risk & Compliance Manager 58307ComplianceSteve Heymann Compliance Consultant - Hardgoods 58013Amanda Cook Compliance Specialist - Hardgoods 58006

J udy Witt Compliance Specialist Soft & Sleepwear 58005Ricky Levy Compliance Specialist Audits, NBR, et.al. 54448Quality SpecialistsJ onathan Wong Quality Specialist - Electrical 56869J uliana Mandic Quality Specialist - Shoes 57506Penny Papoutsis Quality Specialist - Womenswear 51234Pa Yang Quality Specialist Childrenswear 51122QA Technical TeamJ ulie du Plessis QA Manager 54396Michael McKenzie Technical Specialist Team Leader 58011Mustafa Muharrem Technical Specialist 58014Tania Rees Technical Specialist 58010

Nick Zhou Technical Specialist 59428Belinda Williams Technical Specialist 54848Emine Muharrem Technical Specialist 58007J anette Maxwell Technical Specialist 58008Renee Condon Technical Specialist 58004


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34.0 Hong Kong QA ProcessAll HKPO sourced products shall be assessed in Hong Kong. Nomination of HKQA or AUSQA assessments isdone by Buying on the submission screen of the QADB. All other processes are identical with either locationchoice.

35.0 HKQA Contacts (852) 3604 - etxn

Dean Wright QA/QC Manager HK/SH 1031Peddy Fok QA Officer Small Appliances 1033Sancho Tsang Technical Officer Small Appliances 1042J ose Lam QA Officer Consumer Electronics 1036Sai Fan Lee Technical Officer Consumer Electronics 1041Man Cheng QA Officer Softgoods, Misc Hardgoods 1035Allan Chow Technical Officer Softgoods, Misc

Hardgoods1038

Patrick Ng QA Officer Toys and Sporting 1034Thomas Wong Technical Officer Toys and Sporting 1037Scott Lo Technical Officer - Footwear 1039Berry Kwong Packaging and Printing Specialist 1040J ulisa Chu Pre-Shipment Co-ordinator - HK 1032Cherry Cia Pre-Shipment Co-ordinator - SH 1523

36.0 QC@DCAll Level 4, 2 nightwear, and 3 Private Label lines are required to be inspected upon receipt at the DC. Incominggoods are assessed against reports currently in the QADB. If defective, they will be placed on-hold untilcorrective action is taken.The BM/Buyer and QA will determine the risk associated with the defective goods. Minor faults may be allowedfor this shipment only. All other goods would need to be amended. Any breach of legislation will under nocircumstances be allowed to be shipped to store without re-work. All rework or return freight is charged back to

vendor. If the SBM/MM and the QRC manager cannot come to a consensus as to the corrective action required,the Department GM reserves the right to make the final decision.

ContactsDavid O Leary QC@DC Big W Warwick 07 46610185Cassie Paech QC@DC Big W Monarto 08 85327152Kamlesh Reddy QC@DC Woolworths GM 02 98927601Dianne Grimadell QC@DC Woolworths GM 02 88872119

37.0 Process ReviewQA encourages feedback on any aspects of this manual. This manual will be updated annually and on an as

needs basis if within the annual period.

38.0 Terms and Definit ions3

rdParty Certification Body or Test Facility Independent of supplier & QA

AUSGM QA Australian General Merchandise Quality Assurance Department

AS/NZS Australian New Zealand StandardsACMA Australian Communications and Media AuthorityBronze sample Pre production, mock up sample used for initial approvals.

CAP Corrective Action Plan

Client A customer or receiver of services

Critical All documentation listed in the product category specifications

DB QA DatabaseDC Distribution CentreElectricalProduct

Products requiring electricity to function and is considered to be high risk


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EMC Electromagnetic Compatibility

EN European Standards (French: Norme Europen)

GM General Manager

GWP Gift with purchase

Gold seal sample Post Production sample by which a factory will use to use as an expectation ofoutcome

HKPO Hong Kong Procurement Office

HKQA Hong Kong Quality AssuranceHigh Risk Any electrical product requiring EMC and/or Electrical Safety ApprovalISO International Standards OrganisationManager QA Risk & Compliance Manager.MM Merchandise ManagerNA Not AvailableOSC Big W only Order Signed Conditionally.

ProductStandards

WoW Limited Group Quality and Compliance guidelines for product sold in alldivisions.

QA Big W/WW Quality Assurance Department

QADB Quality Assurance Database

QCR Quality Control Report

QRC Mgr Quality, Risk & Compliance ManagerQS Quality Specialist for assigned division or specialty areasRegulators Australian Competition and Consumer Commission (ACCC), Australian

Communications and Media Authority (ACMA), State and Territory Fair Trading.These government departments enforce the Trade Practices Act.

SF Shared Folder

SFR System For Retailers

Silver sealsample

Pre production sample used for final approvals as the closest guide for expectedproduction.

SleepwearSpecialist

Mandatory Compliance Specialist who conducts the second assessment postBronze and Silver approval.

Standards AS/NZS/ISO and equivalent.TL Team Leader

TPA Trade Practices Act

WoW Ltd Brand Woolworths Limited Group business brand or label bearing a divisional name,owned by the Group or sold exclusively or under license to the Group.

39.0 Big W GMQA Internet Quick Links

Please refer to the Internet link for the following manuals, protocols and reports Design Manual

Manchester Manual Textile Manual Packaging & Labelling Manual Pre-shipment Inspection Protocol Pre-shipment Inspection Report

http://www.bigw.com.au/vendors/index.html followed by BIG W Vendor Trading Terms andTrading Terms Supporting Links. (Ctrl + click)


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40.0 Attachments


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Date:QAIDNo:RefNo/KeyCode:Vendor:VendorStyleNo:OrderNo:ShippingDate:InStoreDate:Dept/Buyer:

BronzeSilverGold Advertising

ForOfficeUseAdvertised: Yes NoAdvertisingDate:

Comments:

ForOfficeUse