Equipment replacement considerations
Office equipment must be used properly and maintained appropriately in order for it to remain productive and efficient. In fact, if equipment is misused regularly, it may be subject to continual breakdown and be more of a challenge than a help.
Rapid and efficient servicing of equipment is desirable; and it is important that backup equipment or options are available for the most critical equipment used. Equipment must be regularly maintained. It is often the administrative professional’s responsibility to coordinate equipment maintenance with the trained professionals involved.
Equipment maintenance involves the following considerations:
In-house maintenance (on purchased equipment)
When it is cost-effective, in-house maintenance of equipment can sometimes provide much more rapid response time on repairs in comparison to the response time of external maintenance providers. Costs to provide in-house service include salaries, benefits, retraining for new equipment and technologies introduced, service department space and related costs.
Service calls on a per-visit charge basis (by an external party; on purchased equipment)
Unless preventive maintenance is provided, this approach may end up being more expensive than other approaches. In addition, it may be more costly (even though it may appear on the surface that service costs may be less).
Service contracts established with the vendor (for purchases and leases)
Most service contracts are established on a yearly basis, and they are generally fairly costly. Routine maintenance and service calls are generally covered under contracts. Small parts may be covered, in addition to labour provided; however, the equipment owner is generally responsible to pay the cost of larger parts.
The following concepts should be taken into account with regard to service contracts:
- Coverage provided (service call time, transportation, maintenance and repair labour costs, and cost of parts)
- Contract cost and specific coverage time period
- Specific equipment covered by the contract
- Number of inspections provided during the contract duration
- Renewal conditions and terms
- Restrictions affecting all areas of the contract and the nature of any exclusions
- Options for backup equipment during equipment down-time
Equipment Replacement Considerations
The following considerations apply to equipment replacement:
- The useful life of the equipment (including the amount of use the equipment is expected to receive, equipment depreciation and equipment efficiency
- Changes in technologies and their impacts on the office
- Projected organisational growth
- Specific office applications and needs