Office Equipment and Furniture Chapter 6 Office Equipment and Furniture

Considerations to Assess in Selecting Office Equipment 1. Purpose of the equipment 2. Determination of the appropriate equipment 3. Dependability 4. Specifications 5. Cost 6. Operational processes/capabilities 7. Safety features 8. Flexibility 9. Ease of operations

Equipment Considerations to Assess in Selecting Office Equipment 10. Speed of equipment operation 11. Cost of equipment operation/peripheral costs 12. Equipment operator input 13. Standardization—not one of each brand

Vendor Considerations to Assess in Selecting Office Equipment 1. Reputation of the equipment vendor 2. Training provided by the manufacturer or equipment vendor 3. Purchasing options 4. Delivery of the new equipment

Maintenance Considerations to Assess in Selecting Office Equipment 1. Servicing the equipment 2. Equipment maintenance

Comparative Analysis Form Is useful to compare the various features of various brands of equipment

Leasing Options True lease Lease with option to purchase Also known as a capital lease, con- ditional sales lease, or buyout lease Also known as a tax, operating, or fair market value lease Can be obtained for short term or long term At end of lease, lessee has option of pur- chasing equipment

Sale Leaseback An arrangement in which the organization purchases the equipment, sells it to the lessor, who then provides the organization with a long-term lease. Provides equipment with needed specificafications. Frees up capital for other uses.

Questions that Help Determine Which Leasing Alternative to Use 1. What will the organization want to do with the equipment at the end of the lease period? 2. What is the status of the organization’s cash flow situation? 3. What is the organization’s tax liability situation? 4. How long will the organization likely want to use the equipment?

Advantages of Leasing Office Equipment 1. Leasing conserves working capital that may be needed for other purposes. 2. The organization is able to obtain up-to-date equipment. 3. True lease payments are tax deductible. 4. Lease equipment enables an organization to use its financial resources more efficiently.

Disadvantages of Leasing Office Equipment 1. Leased office equipment is frequently more costly than purchased equipment. 2. The lease may stipulate that the lessee is responsible for equipment maintenance and repairs. 3. Most leases stipulate that the lessee keep detailed records on the leased equipment. 4. If the lease gives the lessee an opportunity to purchase the equipment, the lease payments are not tax deductible.

Difference Between Equipment Leasing and Equipment Rental Leasing Typically involves a contract that stipulates the length of time the lease is in effect. Generally does not require that the equipment be used a specified length of time. Rental

Questions to Consider When Deciding Whether to Lease or Purchase Office Equipment (1of 2) How rapidly are new technological developments occurring in the type of equipment being considered? 2. What is the purchase cost of the equipment? 3. What leasing arrangements are equipment vendors willing to provide? 4. What special provisions become available when leasing equipment?

Questions to Consider When Deciding Whether to Lease or Purchase Office Equipment (2 of 2) 5. How stable are the various work processes for which the equipment is needed? 6. What is the per unit cost of work when leasing equipment and when purchasing equipment? 7. What are the results of break-even analysis? 8. What is the length of the payback period?

Equipment Maintenance Options Service Contract Call Basis In-House Service

Factors to Consider When Deciding on Equipment Maintenance Method (1 of 2) 1. Cost and provisions of a service contract. 2. Frequency of equipment repair. 3. Impact of preventive maintenance on increasing the life of equipment. 4. Availability of and expense incurred in employing training service personnel.

Factors to Consider When Deciding on Equipment Maintenance Method (2 of 2) 5. Number of different brands of office equipment owned by the organization. 6. Type of equipment to be maintained. Cost of paperwork associated with equipment maintenance. Speed with which the equipment must be repaired.

Inventory Control Considerations Serial number of each piece (whether owned, leased or rented) Date of purchase Life of equipment (actual or lease) Yearly depreciation Book value Location Inventory control number assigned Costs involved in servicing

Factors to Consider in Selecting Office Furniture 1. Intended use of the furniture. 2. Appropriateness of furniture in relation to décor of office. 3. Suitability of furniture for its users. 4. Versatility of furniture. 5. Durability of furniture. 6. Hierarchical level of furniture user. 7. Size of furniture in relation to room or area size. 8. Fire-retardant value of furniture.

Modular Design Consists of such components as a desk or working space, storage space, file space, and shelf space. Employee’s job responsibilities are considered in determining the components needed and their configuration.

Portable Design Facilitates easy office rearrangement in open space planning. Makes extensive use of movable panels and screens.

Functional Design Design of office furniture is based on employee needs. Takes into consideration how furniture use can be maximized given employee’s job duties.

Ergonomics Design Takes into consideration the relationship between employees and their physical environment in the design of their furniture. Ergonomics design is especially considered in chair design.

Standards to be Reflected in Chair Design 1. The chair should enable the user to sit flat on the chair with knees bent and feet flat on the floor. 2. The chair should support the user’s back in an upright position. 3. The user should be able to hang his or her arms straight down from the shoulders with the elbows bent.