Identifying Causal Factors

Case Study Daves Stores Fire

Daves Stores is a grocery chain in New Hampshire. The stores cater to an upscale customer and feature non-seasonal fruits and vegetables, high quality cuts of meat, and other high-ticket items such as French wines and cheeses, Belgian chocolate, and Chinese herbs.

Last week, a small fire broke out in the butcher shop of one of Daves grocery stores. The fire occurred between midnight and two a.m. when dripping water from a leaking roof fell onto a meat slicer with frayed wiring. The resulting short circuit overheated the shop wiring, causing a smoky, smoldering fire that lasted several hours.

There are two fire suppression systems in the store one in the back of the store near the deli and butchers shop and another in the front of the store near the inventory and cash registers. Smoke detectors located in the rear of the store never signaled an alarm, and it was not until the smoke had built up towards the front of the store that those smoke alarms went off and alerted the fire department. The smoke alarm also triggered the store's front fire suppression system, which doused the front portion of the store with water.

Although there was relatively little fire damage, the water and smoke damage caused a major loss for the store's inventory. Repairs to the store and the delay in obtaining replacement inventory led to a twenty-day business interruption loss as well.

Instructions: Respond by charting out the loss process and identifying Causal Factors associated with this loss. What recommendations for risk control would you make?