An Emergency Response Plan in Sainsbury's Supermarkets Limited - Case Study Example

Introduction Risk assessment is an important process for business organizations in their efforts to ensure safety in their premises. This document is an assessment of Sainsbury's Supermarkets Limited, headquarter branch, which is one of the leading retailers in the United Kingdom, to determine the availability of various hazards and risks. It ranks the risks and makes an analysis of the hazards using tree diagrams and analysis. In addition, a reliability study of the supermarket is conducted with a presentation of an emergency response plan. It also examines the insurance of the supermarket and does a cost benefit analysis of insuring before looking at the utility of insurance. Description of Sainsbury Supermarket Sainsbury's Supermarkets is a large supermarket in the United Kingdom, and is located at Holborn in London. It can accommodate several thousands of shoppers in at a go. The supermarket operates on a twenty-four hour basis. The supermarket has several doors that include the entrance and the exit doors, an emergency exit and the off-loading opening. These doors are large enough such that each door can allow the movement of about twenty persons simultaneously. However, the off-loading opening is used specifically for off-loading purposes. In case of an emergence, all these openings can be used for exit. The supermarket has also risk prevention and control measures. It has installed a fire detection and sound alarm system to alert people in case of a fire or leakage of gas including refrigerator coolants. In addition, there is a sprinkler system that works in conjunction with the fire detection system to extinguish fire at its earliest stage. Water taps for use by the fire brigades are also available within the site of the supermarket. Hazard List The hazard list is represents the hazard that are present at the Sainsbury Supermarket, and includes the lists of people and properties that might be harmed in the event of an accident caused by the hazard, the risk rank, control measures put in place by the supermarket to mitigate the risks, and further auctioned needed to prevent the risks. Table 1: hazard list Hazards Who might be harmed Risk ranking Control measures Further action Emergency /fire exits blocked by stacked goods Workers and staffs, customers and other visitors, the public and the building in case of a fire or explosion Medium Portable fire extinguishers, water pipes, and alarms are available Goods should be packed away from emergency exits and other exit or entrance ways Paper bag packaging as source of fire fuel Workers, staff, customers and visitors, and the building when a fire starts Medium Portable fire extinguishers, water pipes, and alarms are available. Papers are kept in an organized manner. Avoid source of ignitions such as lighters close to paper bags storage and handling areas Merchandises, especially clothing, pastry, wines, and wood and plastic products as sources of fire fuel Staff and workers, customers and visitors, and the building Medium Portable fire extinguishers, water pipes, and alarms are available. Ensure there is no source of ignition by avoiding flame lighters in these sections and by checking electric equipments regularly to makes sure no sparks occur Lighters and match boxes Staff and workers, customers and visitors, the public, and the building if fire broke up Medium Lighters and match boxes are placed at the counters and sold on request Prevent testing of lighters and opening match boxes while inside the shopping hall Heavy merchandise and other objects stacked on the shelves Staff and workers as well as customers and visitors in the hall in case of the objects falling Medium Items/merchandize are categorized so that heavy items are in particular sections Heavy items should be stored on lower shelves Slippery floors and staircases Workers, staff, and customers and other visitors if they slip and fall Medium Floors are kept dry always Floor mats should be provided Cooking and heating equipments in the in-store bakery Workers, staff, customers and visitors, and the building High Portable fire extinguishers, water pipes, and alarms are installed at the bakery and in the rest of the hall The bakery should be located outside the supermarket Manual handling involving bending, stretching, lifting, reaching, pulling, or repetitive motions including using checkout scanners Workers and staff may suffer strains and sprains as well as musculoskeletal disorders Medium Stepladders and stools for stacking, and mechanical aids are provided. The supermarket should allow job rotation. Staff should be trained on safe handling. Heavy items should be stored on lower shelves Standing and/ sitting for long durations Workers and staff can develop fatigue, back injuries, and varicose veins Medium Regular breaks are provided to workers and stuff The supermarket should allow job rotation Large crowd of people including shoppers, staff and other visitors Workers, staff, customers and visitors, the building Medium Wide entrance and emergency fire exits. Extended shopping hours. Control the maximum number of people that should be in the supermarket simultaneously The car park adjacent the supermarket building; the fuel in vehicles is a source of explosion and fire Workers, staff, customers and visitors, and the building if the car fuels were ignited Medium Portable fire extinguishers, water pipes, and alarms are installed Monitor the use of the car park. Ensure engines of cars are not left running during parking The cold temperature storage facilities (refrigerators) and freezers, and the coolants. Workers, staff, customers and visitors. Low Temperature is properly regulated to maintain at suitable degrees and doors of freezers are kept closed. Alarms to alert on coolant leakage. Monitor the use of the cold storage facilities to avoid people being exposed to cold for long durations. Inspect the facilities to ensure proper functioning and no leakage Extensive use of glass materials on the building Workers, staff, customers and visitors, and the building in case of explosion, fire, and/or natural disasters like an earthquake Medium Use of protective and blast resistant glaze on the glass. Reinforcement frames used to hold glass Electricity Workers, staff, customers and visitors, and members of the public Medium Warning on areas that need precautions. Insulation of electricity cables and use of conduit Check electricity cables regularly to ensure they are insulated and connection are proper. Risk ranking The ranking of risk is based on the likelihood that a hazard occurring and the impact that hazard would result if an accident occurred. The likelihood of the risk is determined by various factors. These include the availability of a hazard, the previous occurrences of such risks events, and the safeguards in place (British Standard Institution, 2006). The impact of the risk refers to the expected damage to property and infrastructure as well as the effect on people such as death and injuries. Table 2: risk ranking Risks Likelihood Impact Overall rank Stampede Low Medium Medium Fire and explosion. Low High Medium Merchandise/ objects falling on people Medium Low Medium Slips and falls Medium Low Medium Explosion and fire Low High Medium Strains, and sprains, and muscle injuries High Low High Back injuries, varicose veins, fatigue High Low High Electric shocks that can lead to fall from ladders and other platforms Low High Medium Preliminary hazard analysis (PHA) The table below lists several aspects of the hazards discussed above. Table 3: Preliminary hazard analysis Ref no. Sources of hazard Location of hazard Trigger (s) Possible accident Consequences Warning devices Safeguards Contingencies Frequencies Criticality rank Comments 1. Emergency/fire exits blocked by stacked goods At the emergency exits An emergency such as fire outbreak and/or explosion Stampede Suffocation, injuries, and death in case of fire None Automatic sprinklers. Portable fire extinguishers. High Low Medium Emergency/ fire exits should be cleared of obstructions 2. Plastic paper bag (packaging) as source of fire fuel At the store and checkout Produces flame and smoke Fire and explosion. Suffocation, injuries, and death Sound fire alarms Automatic sprinklers. Portable fire extinguishers. High Low Medium Eliminate ignition sources like lighters 3. Merchandises, especially clothing, pastry, wines, and wood and plastic products as sources of fire fuel At the shopping hall (on shelves) Produces flame and smoke Fire and explosion. Suffocation, injuries, and death Sound fire alarms Automatic sprinklers. Portable fire extinguishers. High Low Medium Eliminate ignition sources. Ensure no electric sparks 4. Lighters and match boxes At the shopping hall (on shelves) Flame production Fire and explosion. Suffocation, injuries, and death Sound fire alarms Automatic sprinklers. Portable fire extinguishers. High Low Medium Prevent lighting of matches/lighters in the building 5. Heavy merchandise and other objects stacked on the shelves At the shopping hall (on shelves) Merchandise/ objects shaken or mishandled Merchandise/ objects falling on people Injuries, including broken bones, and limbs, and death None None High Medium Medium Heavy merchandise and items should be placed on lower shelves 6. Slippery floors and staircases At the hallways, staircases and in offices Liquid on floor and loss of balance Slips and falls Injuries, including broken bones and limbs, and death None None High Medium Medium Keep floor always dry and spread floor mats on hallways and stairways 7. Cooking and heating equipments in the in-store bakery At the in-store bakery Faulty electric gadgets, fuel ignition by sparks Explosion and fire Suffocation, injuries, and death Sound fire alarms Automatic sprinklers. Portable fire extinguishers. High Low Medium The bakery should separated from the supermarket 8. Manual handling At the shelves in the hall, at the stores, and at warehouse Bending, stretching, lifting, reaching, pulling, or repetitive motions including using checkout scanners Strains, and sprains, and muscle injuries Musculoskeletal disorders and Physical disability None None High High High Workers and staff should be allowed work rotation. They should also be trained on safe handling. Heavy items should be placed on lower shelves. 9. Standing and/ sitting for long durations At the checkout, and along the merchandise shelves Straining Back injuries, varicose veins, fatigue Physical disability None None High High High Workers and staff should be allowed work rotation. 10. Large crowd of people including shoppers, staff and other visitors At the hallway, stairways, entrance and exits ways, and lifts and escalators An emergency such as fire or explosion Stampede Injuries, suffocations, and deaths None None High Low Medium Regulate the number of people in the same hall simultaneously. 11. The car park adjacent the supermarket building; the fuel in vehicles is a source of explosion and fire Close to the supermarket building Fuel leak, faulty engines or car electrical, and collision Explosion and fire Suffocation, injuries, and death Sound fire alarms Automatic sprinklers. Portable fire extinguishers. High Low Medium Monitor the use of car park. Ensure vehicle engines are turned off while being parked. 12. The cold temperature storage facilities (refrigerators) and freezers, and the coolants. At the shopping hall Coolant leakage. Working or using the cold storage facilities Explosion and fire. Exposure to cold for long durations. Suffocation, injuries, and death. Frostbite. Alarms in case of coolant leakage. None in case of frostbite. Automatic sprinklers. Portable fire extinguishers. High Low Medium Monitor the use of the cold storage facilities to avoid extended exposure to cold. Workers should wear protective while handling these facilities. Inspect facilities to ensure they are functioning properly. 13. Electricity At the shopping hall, offices, checkout, and connection posts Contact with live cables. Sparks in faulty gadgets Electric shocks that can lead to fall from ladders and other platforms Explosion and fire. Severe injuries and death None Insulation of electricity cables and use of conduit low Low Medium Check electricity cables regularly to ensure they are insulated and connection are proper. Events trees: fire The probability of occurrence of an unfavourable event can be estimated using event trees. This study examines the probability of fire occurring in the supermarket through an event tree. The British Standard Institution (2006, p.25) informs “event trees are most useful when there is little data on the frequency of outcomes of concerns that are very infrequent.” This was characteristic of the situation at the Sainsbury Supermarket. Figure 1. An event for fire at the Sainsbury Supermarket Mathematical analysis of the event tree Ignition is the key initiating event in the supermarket scenario and other nodal events follow. The nodal events are detection of fire in less than about five minutes, extinguishing the fire through portable extinguishers, spread of the fire into other sections or rooms of the supermarket, sprinkler action, and fire brigades extinguishing the fire. The frequency of ignition is dependent on the type of building associated with occupancy and the total floor area of the building (British Standard Institution, 2006, p.15). That is, Fi = aAbb where ‘a’ and ‘b’ represents the kind of building associated with occupancy, and Ab represents the total floor area of the building. In addition, ‘a’ also includes the ratio of the number of fires (n) within a specific time period to the number of buildings at risk (N). The parameter ‘b’ represents the increase in Fi with increase in Ab. The resulting frequencies (F2) of the outcomes are given by multiplying the frequency of the initial event (F) with the applicable conditional probabilities of successes (PS) and/or failure (PF). That is, F2 = F . PS1 . PF2 The tree indicates that a fire outbreak is expected once in every four years (0.25) at the supermarket, however, the frequencies of other events of the fire are different. For instance, out of the event tree outcomes, it would be expected that in every seven years (1 / 0.15 = 6.6) there would be a fire outbreak, but it would be extinguished successfully with the portable fire extinguishers. On the other hand, the rate of events where a fire break outs, is detected at an early age, is not extinguished by portable extinguishers, spreads to other sections of the supermarket, but it is controlled by sprinklers is once in every hundred years (1/100 years). The tree further shows that the frequency of other events outcomes would be characterised by the combined events occurring once after more than 100 years. The probability that fire is neither detected nor extinguished, and spreads to other parts of the supermarket is 0.0003 so that the frequency of this occurrence is one in more 3000 years. The frequency of these events if the fire does not spread to other sections of the supermarket once is every 1000 years. Reliability study The reliability of systems and measures put in place to mitigate various risks facing Sainbury supermarket is an important factor. Hripcsak, et. al (1999) defines reliability as the “precision of a result.” In this regard, the reliability of systems has to be linked to a particular standard of performance or expectations. The expectation at the Sainsbury supermarket is that the systems and measures in place are able to adequately control various risks. However, these systems are not 100% reliable because they can fail. The reliability of the fire control systems, for instance, depends on a number of factors. To start with, the fire/smoke detection and alarm system uses electronic and mechanical components that determine the functionality of the whole system. Thus failure of a single component would lead to the failure of the whole system. Basing on historical evidence, the system has been highly reliable. Similarly, the functionality of the sprinkler systems depends on the detection system and it own components. On the other hand, the portable extinguisher system relies on the human component as well as ease and efficiency of reaching and operating the device. The reliability of the fire brigade depends on a number of factors that are out of the supermarket’s management control. These factors include lack of or presence of obstructions in routes leading to the supermarket from the fire brigades department, efficiency of the fire fighting services, communication efficiency, among other factors. Business continuity management and plan The management of Sainsbury supermarket realizes the importance of business continuity management (BCM). Its clearly understands what is business continuity management, and defined it as follows (Mellish, 2008, p.6). A holistic management process that identifies potential threats to an organisation and the impacts to business operations that those threats, if realised, might cause, and which provides a framework for building organisational resilience with the capability for an effective response that safeguards the interests of its stakeholders, reputation, brand and value-creating activities. The supermarket has integrated its business continuity management into the rest of the business activities; it is part of the business culture. Therefore, Sainsbury has emphasised on the management of the BCM programmes to include understanding of the organisation, determining strategies for BCM, developing and implementing BCM response as well as exercising, maintaining, and reviewing the BCM strategies and response as important and regular practices. Furthermore, these components form the BCM life cycle. This process is governed and implement by a committee that is led by the board’s company secretary, and include representative of various departments. The structure of governance of the business continuity management process is shown in figure 2 below. Figure 2. Governance structure of Sainsbury Supermarket Business Continuity Management Part of the BCM is the business continuity plan (BCP), which is logistical plan that lays out procedures, actions, and strategies that Sainsbury supermarket would take in order to recover and restore its business functions after an unpleasant incident. One important aspect characterising the Sainsbury’s business continuity plan is that it is a document of key information that is necessary in restoration of business operations after a disastrous incident. This information includes key personnel of the company, important external contacts, crucial equipments and documents, and contingency options such as information and location, among others. The information is documented and strategically backed up to ensure that the information is available even if the information within the supermarket premises is completely destroyed. It is important that the business continuity plan is simple and easy to understand. The development and maintenance of BCP is a continuous process. Besides, putting down the It involves communicating this information regularly to stakeholders, testing the plan through mock disasters, and reviewing and revising the plan. Every time there is change in something, an update of the document is made and communicated to the relevant people. Further, the updated plan is backed up. Therefore, the plan is involves regular update, testing, and communicating its information to relevant stakeholders. It is substantial to say that it is a product of the risk management and assessment since the risk assessment processes contribute greatly to the development of the plan. Emergency response plan Sainsbury Supermarket has also a practical emergency response plan that describes important procedures for handling a disaster. This is important in dealing with worst cases disaster, since it is never certain when an accident may occur. An emergency plan should aim at informing people who use the supermarket on what to do in case there is an emergency such as fire and/or explosion so that safe evacuation is done (HM Government 2007, p.38). The management of the supermarket must provide suitable instructions as well as relevant and clear information regarding response to an emergency to all its stakeholders. These stakeholders include managers and supervisors, workers, including their representatives, the enforcement crew, and the customers or visitors. The management should also inform the guardian of its underage-employees of possible risks and protective measures undertaken to protect the employees. Even workers who are not in the normal working schedule such as trainees, cleaners, maintenance workers, and volunteers should be informed of the emergency response plan. The instructions and information on response to an emergency must be simple and easy to understand. It should consider people under special categories such as those with sight and/or hearing impairment, slow learners, and those who don’t understand the national language. The emergency response plan should be updated with every risk assessment exercise, and the information in it provided to the stakeholders. The emergency response plan for Sainsbury Supermarket should be comprehensive with all aspects of risks covered. Its components should include various potential disasters that would affect the supermarket. It should reflect a final component of consultations with relevant groups including the owners of adjacent premises and authorities responsible for the area. Insurance Since businesses are always faced with uncertainties, insurance is important for business organizations. Sometimes, a fire accident can cause substantial damage to a business, and it is in this regard that it becomes important for the management if the Sainsbury Supermarket to consider insuring the supermarket. It is however, important that a cost benefit analysis of risks is done before taking insurance decision to ensure the benefits of insuring outweighs the cost of the risks. Cost benefit analysis (CBA) Cost-benefit analysis is essential to determine the relative value of various measures taken to mitigate various risks facing Sainsbury supermarket. This study uses probabilistic risk analysis in cost-benefit analysis of installing fire control systems and insuring against fire damage. One of the important steps in this analysis is the determination of costs associated with the installation of the fire control system as well as cost of insurance premiums. Certainly, the costs of installing and maintaining this system are substantial. The key costs would include the following: The cost of system design Installation charges Costs of commissioning and training operators and staff Maintenance and operation of the system costs The capital costs of a sprinkler system with the alarm and detection components is above £25,000, while yearly maintenance costs rate at about £100 (British Standards Institute, 2006, p. 23). On the other hand, the benefits of this system are as follows: Minimized or prevention of property loss Minimized resultant loss Minimized insurance premiums Enhanced safety to people and properties British Standards Institute (2006, p. 23) has approximated the benefit rates of such as a system when the difference in insurance premium is added to be £2,500 per year. This indicates the value of having such a fire control measure in Sainsbury supermarket. The real value, however, is best indicated over a long period of the system operation. This is illustrated in the table below. Note that a discount of 10%, which is the usual percentage for commercial buildings (British Standards Institute, 2006, p. 23), has been factored. Table 4: Approximated sash flow for Sainsbury fire control system Year Capital cost Annual cost Total cost Savings Nest costs/ savings Discount (10%) Costs/ savings NPV Cumulative NPV in £ per year £ 0 25,000 25,000 0 25,000 1 25,000 25,000 1 100 100 -2,500 -2,400 0.909 1 -2 182 22 818 2 100 100 -2,500 -2,400 0.826 5 - 1,983 20 835 3 100 100 -2,500 -2,400 0.751 3 -1,803 19 032 4 100 100 -2,500 -2,400 0.683 0 -1,639 17 392 5 100 100 -2,500 -2,400 0.620 9 -1,1490 15 902 .... .... .... .... .... .... .... .... 28 100 100 -2,500 -2,400 0.069 3 -166 2664 29 100 100 -2,500 -2,400 0.063 0 -151 2513 30 100 100 -2,500 -2,400 0.057 3 -138 2375 Total 28,000 -75,000 -47,000 2,375 Source: British Standards Institute (2006, p. 23). This cost benefit analysis indicates that there is little net present value (NPV) for the fire control system after a period of 30 years. The resultant figure, although positive, signify that the investment of the sprinkler system for fire control did have satisfactory value. However, the small value signify that this scenario was marginal (British Standards Institute (2006, p. 23). In summary, the study shows a number of benefits for installing a sprinkler fire control system for the purpose of property protection and business continuity. Nonetheless, these benefits are outweighed by the costs, meaning that it is not cots effective to install such a system to the supermarket. It is worth to note also that sometime situation may represent a level of fire risk that is very high to the extent that it is not possible bear even if there are huge benefits. In such circumstance, the best consideration would be to reduce the risk as opposed to preventing the risk. Conclusion This study has taken Sainsbury’s Supermarket as a point of reference in an examination of various risks and hazards. The Sainsbury’s Supermarket case presents various hazards and risks. The study, therefore, uses the likelihood and impact formula to rank these risks, and uses the events tree diagram to make an analysis of the same risks. Fire is the main risk in the supermarket and a probabilistic analysis of various events reveals a low level of risk. The option for insurance is examined through the cost-benefit analysis. The study establishes through the cost-benefit analysis that while installation of a sprinkler fire control system reduces the insurance premium, generally it does not have satisfactory value as an investment. Reference list British Standard Institution, 2006. Application of fire safety engineering principles to the design of buildings: probabilistic risk assessment. British Standard Institution, London. HM Government, 2007. Fire safety risk assessment: open air events and venues. Department for Communities and Local Government Publications, London. Hripcsak, G, Kuperman, GJ, Friedman, C, Heitjan, DF, 1999. A Reliability Study for Evaluating Information Extraction from Radiology Reports. Journal of Medical Information Association. Vol.6. No.2. Pp. 143-150. Mellish, S, 2008. Sainsbury’s BCM approach to incident management. Web. 26 January 2010. http://www.cabinetoffice.gov.uk/media/132616/bc_expo_stevemellish.pdf. Richards, G, 1892. A treatise on the law of insurance: fire, life, accident, marine, with a selection of leading illustrative cases and an appendix of statutes and forms. Banks & brothers, United Kingdom. Read More