1. 1 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Office Equipment and Furniture Chapter 6

2. 2 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Equipment Considerations to Assess in Selecting Office Equipment (1 of 2) Equipment Considerations to Assess in Selecting Office Equipment (1 of 2) 1. Purpose of the equipment. 2. Determination of appropriate equipment. 3. Dependability of equipment. 4. Specifications of the equipment. 5. Cost of the equipment. 6. Operational processes of the equipment. 7. Safety features. 8. Flexibility of the equipment. 9. Ease of equipment operations.

3. 3 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Equipment Considerations to Assess in Selecting Office Equipment (2 of 2) Equipment Considerations to Assess in Selecting Office Equipment (2 of 2) 10. Speed of equipment operation. 11. Cost of equipment operation. 12. Equipment operator input. 13. Standardization of equipment.

4. 4 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Vendor Considerations to Assess in Selecting Office Equipment 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 option. 4. Delivery of the new equipment.

5. 5 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Maintenance Considerations to Assess in Selecting Office Equipment Maintenance Considerations to Assess in Selecting Office Equipment 1. Servicing the equipment. 2. Equipment maintenance.

6. 6 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Comparative Analysis Form Comparative Analysis Form Is useful to compare the various features of various brands of equipment.

7. 7 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Leasing Options True lease Lease with option to purchase Lease with option to purchase Also known as a tax, operating, or fair market value lease. Can be obtained for short-term or long- term. Also known as a capital lease, con- ditional sales lease, or buyout lease. At end of lease, lessee has option of pur- chasing equipment.

8. 8 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

9. 9 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Questions that Help Determine Which Leasing Alternative to Use 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?

10. 10 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

11. 11 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

12. 12 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Difference Between Equipment Leasing and Equipment Rental Difference Between Equipment Leasing and Equipment Rental Typically involves a contract that stipulates the length of time the lease is in effect. Leasing Rental Generally does not require that the equipment be used a specified length of time.

13. 13 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Questions to Consider When Deciding Whether to Lease or Purchase Office Equipment (1of 2) Questions to Consider When Deciding Whether to Lease or Purchase Office Equipment (1of 2) 1. How rapidly are new technological developments occurring in the type of equipment being considered? 2. What is the purchase cost of the equipment? 4. What special provisions become available when leasing equipment? 3. What leasing arrangements are equipment vendors willing to provide?

14. 14 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Questions to Consider When Deciding Whether to Lease or Purchase Office Equipment (2 of 2) 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? 7. What are the results of break-even analysis? 6. What is the per unit cost of work when leasing equipment and when purchasing equipment? 8. What is the length of the payback period?

15. 15 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Equipment Maintenance Options Service Contract Call Basis In-House Service

16. 16 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Factors to Consider When Deciding on Equipment Maintenance Method (1 of 2) 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.

17. 17 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Factors to Consider When Deciding on Equipment Maintenance Method (2 of 2) 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. 7.Cost of paperwork associated with equipment maintenance. 8.Speed with which the equipment must be repaired.

18. 18 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

19. 19 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

20. 20 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Portable Design Facilitates easy office rearrangement in open space planning. Makes extensive use of movable panels and screens.

21. 21 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

22. 22 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.

23. 23 Administrative Office Management, 8/e by Zane Quible ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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.