MGT_110_Chapter_5

1/14/2010Chapter 6 Objectives Office Equipment and Furniture  Considerations for proper selection of office equipment and furniture  Equipment, Vendor and Maintenance Decisions  Leasing and buying office furniture  Advantages and Disadvantages of leasing and buying  Equipment Maintenance Decisions Administrative Office Management, 8/e ©2005 Pearson Education, Inc. Administrative Office Management, 8/e ©2005 Pearson Education, Inc. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 1 Upper Saddle River, NJ 07458 1 2 Upper Saddle River, NJ 07458 2 Equipment Considerations to Assess Vendor Considerations to Assess in Selecting Office Equipment in Selecting Office Equipment  Purpose of the equipment.  Reputation of the equipment vendor.  Dependability of equipment.  Training provided by the manufacturer  Specifications of the equipment or equipment vendor.  Cost of the equipment.  Delivery of the new equipment  Ease of equipment operations  Cost of equipment operation.  Standardization of equipment. Administrative Office Management, 8/e ©2005 Pearson Education, Inc. Administrative Office Management, 8/e ©2005 Pearson Education, Inc. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 3 Upper Saddle River, NJ 07458 3 4 Upper Saddle River, NJ 07458 4 1 Administrative Office Management. 8/e ©2005 Pearson Education. NJ 07458 7 8 Upper Saddle River. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 7 Upper Saddle River. 1/14/2010 Maintenance Considerations to Comparative Analysis Assess in Selecting Office Equipment Form  Servicing the equipment  Is useful to compare the various  Equipment maintenance features of various brands of equipment. Administrative Office Management. Inc. Administrative Office Management. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 5 Upper Saddle River. Administrative Office Management. 8/e ©2005 Pearson Education. NJ 07458 8 2 . Inc. 8/e ©2005 Pearson Education. Inc. Inc. NJ 07458 5 6 Upper Saddle River. NJ 07458 6 Comparative Analysis Form Comparative Analysis Form Name of Model # Price Characteristic 1 Characteristic 2 Characteristic 3 Characteristic 4 Manufacturer  Use the comparative analysis form to compare three printers. 8/e ©2005 Pearson Education. 8/e ©2005 Pearson Education. 8/e ©2005 Pearson Education. Leasing conserves working capital that may 1. NJ 07458 10 Questions that Help Determine Advantages of Leasing Which Leasing Alternative to Use Office Equipment What questions should you ask when determining which What are some advantages to leasing? leasing alternative to use? 1. Administrative Office Management. True lease payments are tax deductible 4.  operating. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 11 Upper Saddle River. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 9 Upper Saddle River. Lease equipment enables an organization to use its financial resources more efficiently. option of purchasing  Lessee never intends to equipment. What is the status of the organization’s cash flow 2. NJ 07458 11 12 Upper Saddle River. 8/e ©2005 Pearson Education. or fair market  conditional sales lease. Administrative Office Management. Inc. The organization is able to obtain up-to- situation? date equipment. 2. What is the organization’s tax liability situation? . Inc. NJ 07458 9 10 Upper Saddle River. Also known as a capital lease. who then provides   short-term or long-term. What will the organization want to do with the equipment at the end of the lease period? be needed for other purposes. lessee has sells it to the lessor. buyout lease. Administrative Office Management. organization purchases the equipment. Can be obtained for At end of lease. How long will the organization likely want to use the equipment? 4. 8/e ©2005 Pearson Education. Inc. Inc. 3. . 1/14/2010 Leasing Options Leasing Options True lease Lease with option to purchase Sale Leaseback Also known as a tax. the organization with a long-term lease purchase equipment  Amount paid is usually applied to the purchase price  Usually runs for the life of the equipment Administrative Office Management. or  An arrangement in which the value lease. 3. NJ 07458 12 3 . What is the length of the payback period? when leasing equipment? Administrative Office Management. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 13 Upper Saddle River. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 15 Upper Saddle River. What is the purchase cost of the equipment? equipment? 3. Leasing Rental 2. 8/e ©2005 Pearson Education. NJ 07458 14 Deciding Whether to Lease or Deciding Whether to Lease or Purchase Purchase What questions should you answer when 5. The lease may stipulate that the lessee is  Typically involves a  Generally does not responsible for equipment maintenance and contract that require that the repairs. Most leases stipulate that the lessee keep detailed stipulates the length equipment be used records on the leased equipment. 8/e ©2005 Pearson Education. 1/14/2010 Disadvantages of Leasing Difference Between Equipment Office Equipment Leasingand Equipment Rental What are some disadvantages to leasing? What is the difference between Leasing and Renting? 1. NJ 07458 15 16 Upper Saddle River. 8/e ©2005 Pearson Education. 3. Inc. Administrative Office Management. What are the results of break-even vendors willing to provide? analysis? 4. Leased office equipment is frequently more costly than purchased equipment. If the lease gives the lessee an opportunity to in effect. Administrative Office Management. What is the per unit cost of work when equipment being considered? leasing equipment and when purchasing 2. of time the lease is a specified length of 4. What special provisions become available 8. How stable are the various work processes decided whether to lease or purchase? for which the equipment is needed? 1. time purchase the equipment. Inc. NJ 07458 13 14 Upper Saddle River. Administrative Office Management. Inc. NJ 07458 16 4 . the lease payments are not tax deductible. What leasing arrangements are equipment 7. How rapidly are new technological developments occurring in the type of 6. 8/e ©2005 Pearson Education. Inc. 6. Availability of. contract equipment owned by the organization. Inc. Impact of preventive maintenance on 7. employing training service 8. NJ 07458 18 Factors to Consider When Deciding Factors to Consider When Deciding on Equipment Maintenance Method on Equipment Maintenance Method . Frequency of equipment repair . Administrative Office Management. 4. Service  Answer questions 1-3 Contract In-House Call Basis Service Administrative Office Management. 8/e ©2005 Pearson Education. Number of different brands of office . NJ 07458 19 20 Upper Saddle River. Type of equipment to be maintained 3. and expense incurred in. 1. NJ 07458 17 18 Upper Saddle River. 8/e ©2005 Pearson Education. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 17 Upper Saddle River. 8/e ©2005 Pearson Education. NJ 07458 20 5 . 2. 1/14/2010 Equipment Maintenance Exercise Options  Read the Case about the Sunlight Manufacturing Company on page 128. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 19 Upper Saddle River. Speed with which the equipment must personnel. Inc. be repaired. Cost of paperwork associated with increasing the life of equipment. Cost and provisions of a service 5. Administrative Office Management. Inc. Administrative Office Management. equipment maintenance. 8/e ©2005 Pearson Education. Inc. Appropriateness of furniture in relation to décor of office. and shelf space 4. Hierarchical level of furniture user. 6. Versatility of furniture. use can be maximized given employee’s job duties. 8/e ©2005 Pearson Education. 5. Size of furniture in relation to room or area components needed and their size. Administrative Office Management. considered in determining the 7. file 3. or working space. Inc. 8/e ©2005 Pearson Education. Administrative Office Management. 1/14/2010 Factors to Consider in SelectingOffice Furniture Modular Design 1. Inc. Fire-retardant value of furniture. 8/e ©2005 Pearson Education. NJ 07458 22 Portable Design Functional Design  Facilitates easy office rearrangement in  Design of office furniture is based on open space planning. Intended use of the furniture. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 23 Upper Saddle River. space. configuration 8. Inc. Suitability of furniture for its users.  Makes extensive use of movable panels  Takes into consideration how furniture and screens. Durability of furniture  Employee’s job responsibilities are . Inc. employee needs. Administrative Office Management. Administrative Office Management. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 21 Upper Saddle River. NJ 07458 23 24 Upper Saddle River. 8/e ©2005 Pearson Education. NJ 07458 24 6 . storage space. NJ 07458 21 22 Upper Saddle River.  Consists of such components as a desk 2. by Zane Quible Pearson Prentice Hall by Zane Quible Pearson Prentice Hall 25 Upper Saddle River. The user should be able to hang his or her arms considered in chair design. straight down from the shoulders with the elbows bent. Inc. environment in the design of their 2. Administrative Office Management. 8/e ©2005 Pearson Education. NJ 07458 25 26 Upper Saddle River. the user’s back in an upright position.  the user to sit flat on the between employees and their physical chair with knees bent and feet flat on the floor. 1/14/2010 Standards to be Reflected Ergonomics Design in Chair Design The chair should enable Takes into consideration the relationship 1.  Ergonomics design is especially 3. 8/e ©2005 Pearson Education. Inc. The chair should support furniture. Administrative Office Management. NJ 07458 26 7 .