It took a combination of problems to cause that crash. The police lieutenant who had informed the railroad of the parade in previous years had retired, and his replacement didn't do it. The police marshalling the parade let it go through red lights. They were unaware that the traffic light near the railroad crossing was tied in to the crossing gates and signals. That's done to clear traffic from the tracks when a train is approaching before the gates go down. So ignoring the traffic signal took away 10 seconds of warning time. The driver thought the police had taken care of safety issues and was looking backwards at the trailer he was pulling, not sideways along the track. People at the parade were using air horns which sounded like a train horn, so the driver didn't notice the real train horn. That's what an NTSB investigation digs up. Those are worth reading to see how to analyze a failure.
[1] https://www.ntsb.gov/investigations/AccidentReports/Pages/HW...
[2] https://www.ntsb.gov/investigations/AccidentReports/Pages/HA...