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If your users are working at their desks, with a reasonable amount of
desk space, 8.5 x 11 may be the best, because it allows enough space for
a readable point size and large chunks of info readable at once. That
means they can follow a whole procedure with their hands on the keyboard
or the machine they're using, without constantly turning pages.
On the other hand, if the manual will be used on a shop floor or lab or
in the field, a smaller format is more convenient, because there is
probably no place to prop the manual, and the user may want to fit it
into a briefcase, or even a pocket. ) In that connection, besides size,
you might want to consider whether it needs to stand up like a shorthand
notebook, whether it needs to lie flat, be grease resistant, etc.
As with many physical features of manuals, it's important to observe
your users on the job, and/or ask them about their needs. The best
format and size = what the user needs.