2. Office Equipment and Furniture
Chapter 6
Office Equipment and Furniture

3. 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

4. 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

5. 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

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

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

8. 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

9. 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.

10. 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?

11. 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.

12. 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.

13. 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

14. 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?

15. 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?

16. Equipment Maintenance Options
Service
Contract
Call Basis
In-House
Service

17. 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.

18. 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.

19. 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

20. 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.

21. 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.

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

23. 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.

24. 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.

25. 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.