THE CLARKSON COMPANY: A DIVISION OF TYCO INTERNATIONAL

In 1950, J.R. Clarkson founded a family-owned industrial valve design and manufacturing company in Sparks, Nevada. For almost a half century, the company, known as the Clarkson Company, worked on advancing metal and mineral processing. The Clarkson Company became known for its knife-gate and control valves, introduced in the 1970's that are able to halt and isolate sections of slurry flow. By the late 1990's, the company had become a key supplier of knife-gate valves, helping to control the flow in many of the piping systems around the world in different industries, including mining, energy, and wastewater treatment.

The knife-gate valve uses a steel gate like a blade that lowers into a slurry flow to create a bubble-tight seal. While conventional metal gates fill with hardened slurry and fail easily thereby requiring high maintenance, Clarkson's design introduced an easily replaceable snap-in elastomer sleeve that is durable, versatile, and handles both high pressure and temperature variation. Pipeline operators value Clarkson's elastomer sleeve because traditional seals have cost between $75 and %500 to replace, and considerable revenue is lost when a slurry system is stopped for maintenance repairs. Clarkson's product lasts longer and is easier to replace.

In the late 1990's, the Clarkson Company was acquired by Tyco Valves & Controls, a division of Tyco International, Ltd. Tyco Valves & Controls, located in Reno, Nevada, and having ISO 9000 certification, continues to produce market, and distribute products under the Clarkson brand name, including the popular knife-gate valve.

DISCUSSION – Answer the question to #2

1. Pipeline operators estimate that it costs between $75 and $500 in U.S. currency to replace each seal, thus making the Clarkson longer-lasting valves more attractive. Tyco does business with pipeline companies around the world, Suppose in an attempt to develop marketing materials, Tyco marketers are interested in determining whether there is a significant difference in the cost of replacing pipeline seals in different countries. Four countries-Canada, Colombia, Taiwan, and the United States-are chosen for the study. Pipeline operators from equivalent operations are selected from companies in each country. The operators keep a cost log of seal replacements. A random sample of the data follows. Use these data to help Tyco determine whether there is a difference in the cost of seal replacements in the various countries. Explain your answer and tell how Tyco might use the information in their marketing material.

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