Vol 68, No.

9;Sep 2018

Modern tendencies of profiling and development of industrial capacity

Prof.dr Snežana Todosijević Lazović1
MSc Zoran Katanić2
Prof.dr Radmilo Todosijević3

Abstract
Profile capacities of companies is a decision on the degree of completion, i.e complexity including
horizontal and vertical phases of the production process within their own capacities to produce a product
belonging to a defined production profile, i.e. a business portfolio. Capacity is the basis for the definition
of production and business cooperation. Definition of a capacity profile also defines a degree of
production independence.
When making development decisions, one must take into account the type of a product, type and volume
of production, capacity profile and size, location, degree of access to basic and supplementary resources
and possibilities of obtaining the longer time perspective, the level of technology, particularly in terms
of modernity, i.e dominance, potential perspective of purchasing capacity and demand, the state of
competition and possibility to increase their own business opportunities, etc.

Output quality, through which the company enters into its fluctuating environment, will predominantly
be determined by the quality of inputs and the level of technical modernity means of production expressed
through the level of technology dominance chosen. When the quality of the raw materials conditions the
application value and the properties of the final product, we may have a situation which technology is
not able to correct. The study paper also points to the existence of a dependence of the production
capacity profiles upon the location and globalization, which is underscored as a branch of intensive
technical progress and hence the engagement of the highly qualified labor force.

Keywords: capacity, production, technical progress, location, company, environment.

Introdiction

The problems of choosing a company production profile and selection of the profile and size of the
capacities, are two most important key issues of enterprise development. The choice of production
orientation and capacity of the company is the one (defining development lines) right opportunity, when
it is necessary to work simultaneously and actively in order to achieve optimal conditions not only for
production, but also for efficient development activities, in particular in the case of products that are
intensive in technical progress. It is, therefore, important when choosing a production program and the
level of production cooperation, defined by profiled starting capacity, to appreciate alternative technical
possibilities from the standpoint of the challenges and ways of meeting the research and development
obligations under the proposed program product production. In these activities, it is necessary to
emphasize the importance of intensifying research and development activities, not only within the

1
Associate Professor Faculty of Economics in Kosovska Mitrovica, Serbia
2
Doctoral student at the University Singidunum, Belgrade, Serbia,
3
Emeritus, Novi Sad, Serbia

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capacity of the finalists, but also in the domain of specialized supporting industries, which is an important
condition for achieving qualitative progress and the effectiveness of finalists.

Company development capacity, being a complex category, reflecting by its content a very complex
problem, has been illustrated as the development process of, which is implemented:
1. along the line of individual components, in the form of changes to their properties, price, structure,
and their organizations, which impacts the capacity,
2. Along the line of technology level, as well as other work processes, and
3. Along the line of level of concentration factors that determine the capacity situation.

1. Objectives of profiling capacity in operational and strategic management

Unpredictable economic developments necessitate that the time that elapses from the idea to its
implementation is reduced to the shortest possible period (Klašnja et al. 2015). It is simply due to the
fact that there is no substitute for time. Each development option, as a rule, leads to changes that may be
creative and destructive. Perception of time suggests that development decisions should be made not
according to the criteria that are valid today, but according to criteria which will apply during the
implementation of the planned and achieved development -Innovative changes. This is due to the fact
that there should be no devaluation before the period when it would be possible to achieve reproduction.
In this respect, Drucker P. has suggested that changes of the innovative character should be considered
simultaneously through two dimensions: conceptual and perceiving (Drucker 2003).

Definition of the capacity profile also decides on the degree of independence of production in the context
of our own capacities. Simultaneously with the defined profile capacity, the breadth of cooperation with
specialized subcontractors and other complementary facilities for certain stages of the production
process, for which they are able to provide efficient and cost-effective production conditions, are defined.

Capacity profile, as a term, has been introduced for practical reasons, to be able to express more
accurately in cases where the production profile and the profile of capacity do not match.

This is the case with most companies that partly rely on a mechanical and partly on energy technologies.
Designed capacity profile is the basis for defining:
1. needs in investments;
2. Research and development tasks by line of technology and organization development;
3. breadth of cooperation and other forms of production and business cooperation; and
4. The need to supply intermediate goods and components for installation.

It is ensuing that the production profile serves as the basis for defining the tasks by line of product
development, which has to be developed comprehensively, regardless the fact that a very complex
product might be at stake, largely made up of the parts or components produced by multitude of
specialized capacities of supplementing industry.

Profile of the capacity is more dynamic category than the production profile, due to the fact that it is
subject to change and in cases where the width of the production profile does not change. A change in
the profile of capacity is due to increase in production volume and maturing conditions to extract certain
components or aggregates in order to create an independent production - organization or a business unit.

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This process occurs with the development of specialized complementary supporting industry. Definition
of the starting company capacity represents a significant research and development activity focused on
innovation processes. Thus, within the different methodologies for determining the innovation capacity
of the company, a certain number of models and techniques, including a number of variables (Dabić et
al. 2012) has been defined. With an emphasis on quality, the main objective is focused on selective
choice and reduction of the number of poor quality constructions (Mitrovic et al. 2015).

Classical economics emphasizes the large aggregates: economic growth, international trade, monetary
economics and public finance (Jaksic and Praščević 2011), which indicates that the capacity development
is a function of the export orientation on the one hand, the desirable level of satisfying domestic needs
and available resources in the long time perspective.

Therefore, expanding of the capacity profile occurs as a result of production concentration increasing.
These situations are result of growing demand for certain semi-finished or processed components, thus
creating objective conditions for the formation of the new economically rational capacity values within
own business without changing the production orientation.

In terms of an unchanged volume of commodity production, after a specified time, the holder of the final
product can opt to cede a certain product components to the specialized cooperative capacities, which
have been developed over time, and that on the basis of the assigned technical documentation, can
independently continue the production process, ensuring rational conditions, especially if the same type
of or related components, are produced for the greater number of finalists. Concentration of
homogeneous production and technical homogenization can provide more cost-effective production
conditions.

2. The evidence given in this paper

Capacity profile is conditioned, primarily, by a width of the production profile on the one hand, whereas
on the other hand, it is determined by eligibility of the given type and concentration of production for
certain forms of production and business cooperation based on division of labor. We hereby define that
there is a dependence of the capacity profile upon the production profile. Relation 2 in the figure
below.
The greatest influence on the formation of the capacity profile has a, in addition to the level of capacity
development of the specialized complementary industry, the level of production concentration expressed
in capacity size. The level of production concentration essentially affects the level of technological
development integration processes within the framework of its own capacity. We prove that there is a
dependence of the capacity profile upon the size of the capacity. Relation 3 in the following figure.
Prospective of the company capacity should enable the company to create a comprehensive overview of
its current situation and possible directions of deviations or improvement in order to define action plans
(Chiesa et al. 1996).

The development of complementary capacities in the wider location, both in terms of basic as well as in
the field of auxiliary production activities can have a positive impact on the capacity profile. For example,
the ability to use common energy facilities, transportation, labor and other service capacity can unload
and lower investments, and even the production costs. We prove that there is dependence of the capacity
profile upon the profile location. Relation (4) in the following figure.

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On one hand, the size of company capacity is conditioned by the width of the profile production, whereas
on the other hand, it is also conditioned by the level of necessary production concentration of certain
specialty, which provides application of technology of such efficiency level for defined production
profile, ensuring objective basis for achieving competitiveness on markets that provide product
placement, covered with a defined production profile. While doing so, one has to take into account
conditions of placement, considering the size of the purchase - ability to demand and the intensity and
quality of the competition. We demonstrate that there is dependence of the size capacity upon the
production profile. Relation (5) shown below.

Fig. 1. Relations of dependence on the selection and development of production orientation and capacity
of industrial companies (Todosijević 2010).
Establishing a relationship between consumption and savings is the essence of any theory of growth
which enables a connection between the macroeconomic environment and microeconomic behavior (Kell
and Rojac 2007).

The impact of location on the size selection capacity is expressed, primarily with raw material oriented
industrial capacities, as well as in those capacities that are oriented according to the economic
characteristics of its products at narrower regional markets.

The development of infrastructure and human resources potential of wider areas represent further and
more influential factor in the selection of the capacity size of wider circle of industrial products. We
demonstrate that there is dependence of the size capacity upon the choice by location. Relation (6) in
the presented figure.

Designed intended activities may themselves be innovative, others are not, or can contribute to the
implementation of innovations. On the previous image, the activities of economic, social and

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technological progress have been in the center of the circle as functions of innovation activities that
include research and development, that may not be directly related to the development of concrete
innovations or solution of the identified problem (OECD 2005).

3. Capacity as a basis for defining the business cooperation

The level of complexity, i.e. completeness of making products within the capacity of basic production
process depends primarily on:
• characteristics of the product types, such as the degree of complexity of the product composition, the
level of mass production, optimum capacity final product ranges and ranges of optimal capacity for the
production of applied components;
• the level of capacity development for the specialized, supplimentary industry;
• available resources finalists and conditions for the provision of additional resources, and others.

There is a problem in connecting opportunities capacity and demand. While demand may be in small
amounts and can have any value, capacities are often large. Since fixed costs are in capacity, any oversize
or under-utilization of capacity reflects on the business success. Level of utilization capacity can be
increased by using other machines, opening other stores, employing, use of vehicles, and everything
depends from company to company. If we assume that the demand for the product grows continuously
over time, the capacity should grow to the same point, but an increase will come as a separate step. There
is no way to accurately connect separate capacities with continual demand, therefore one of three basic
strategies is to be applied:

1. The capacity is more or less connected with the demand, sometimes higher, sometimes lower;
2. The capacity is at least equal to the demand, which requires a lot of investment in facilities and
provides lower utilization;
3. add capacity when we have additional opportunities to fully use them, which requires lower
investments and provides greater utilization, however, it restricts an output.

Each of these strategies has been applied and best fit depending on the current or upcoming
circumstances (Todosijević 2010).

In terms of development and in terms of survival and duration, organizational and marketing innovations
represent a broader view, which does not retain on the technological changes or changes in the
components that determine the capacity, but still significantly contribute to the improvement of business
results (Mosurović and Kutlača 2011).

The company actually defines its offer by the size, technical and technological structure and
organizational characteristics of capacity with existing levels of output. Size capacity appears as a
compromise between the available inputs, the rational possibilities of obtaining additional resources
and current and projected purchase capability. Factors that may encourage decisions on previous
capacity increase could be: profit growth and new product development; high costs of unmet demand;
changes in product mix; uncertainty as to the behavior of competing capacities; variable efficiency;
fluctuations in the growth capacity; substitution of cost free capacity.

On the other hand, the main factors that encourage the organization to wait as long as possible before
they increase the capacity is the cost of capacity. Unused resources can be very expensive and it is hard
to prove that free capacity will be required for a higher level of demand in the future. Cooperation in the

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development activities has decisive importance, especially due to the fact that there are diffusion
processes between companies and other organizations. Crumbled knowledge and division of labor
emphasize the organizational structure and practices, that are committed to the development of different
forms of production and business co-operation (OECD 2005).
4. Factors affecting the level of product development completion
The level of production complexity within their own capacity is influenced by the type of product and
the similarity of production on the basis of cooperative collaboration. As a rule, produces of high level
of complexity are especially predisposed to organize their production on the basis of the social division
of labor, resulting in product of specialization, which directly presupposes cooperation. Products that are
made using types of higher level of mass production are predisposed for cooperative production to a
greater extent. This should also give importance to cooperative collaboration in the development of
complex installations that belong to the type of repetitive individual production, and even the type of
individual production.

In the process industries, characterized by continuous thermo - chemical processes with a closed cycle
of production, there is not so many problems of cooperative cooperation than in the case of processes
based on mechanical processing and assembling. However, we should not underestimate the possibilities
of cooperation in production with specialized capacity for production of such components in any of the
processing industry for products of very complex composition of a low level of mass, in which the
optimal range of rational capacity significantly exceeds the needs of the finalists. This problem can be
particularly set in the manufacturing of complex chemical products, such as pharmaceutical and chemical
products, where co-operation may be very much developed.

When we have a manufacturing capacity, which form a profile based on mechanical processing and
assembly of parts, then they tend to achieve optimum specialization and integration at horizontal stages
of the design process, i.e. the concentration of parts of similar structure, similar rates of mass production,
with optimum use of available specialized complementary capacity as subcontractors. The basic tendency
is aimed at sharpening the capacity profile and outsourcing of making all these parts for which there is a
possibility of cooperative development at a satisfactory level of production and economic efficiency
(RSO 2012).

For capacity-based mechanical processing and assembly, one seeks optimization of vertical phase of the
process. The company will decide to produce semi-finished products by itself only in case that there are
no conditions for obtaining these parts through cooperative capacity , a satisfactory level of production
and economic efficiency (Todosijević 2010) and in case that such semi-finished products, may be
produced in objective rational conditions for production, optimal range capacity and a sufficient level of
technical equipment.

Sharpening the capacity profile, the company, as a rule, tend to maximize production and business
cooperation, with a view to create a higher degree of concentration and specialization of production, and
hence higher level of massiveness and technical modernity in making components, than it is possible
only at the level of the final product. This leads to raising the level of competitiveness between rival
partners. This is especially important in countries of geographically small physical and economic size,
which to a much lesser extent can use the economic advantage of large capacity (Todosijević Lazović
2010).

In particular, the high degree of capacity development completeness is evident in the industry based on
mass production, on process technology, as well as the mass production of relatively simple products.

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The increase of product complexity degree results in decrease of capacity development completeness
degree. It is possible that any change in capacity will terminate operations, causing discontinuity till
time comes to re-establish equilibrium process.
The changes can be large, extensive, costly, time consuming, activate slow and then there are questions:
what is the payback period for investments and what will be the payback rate? Identifying the utilization
factor and deficiency factor, it is possible to create an information base for decision-making on
changes in the scale and structure of the capacity.

Technology is one of the factors in terms of the level of modernity, used to emphasis a competitive
advantage on the fastest and the longest manner, because of the fact that the level of technical and
technological modernity is most evident through quality and useful properties of the product.
Competitive advantage is gained by more efficient use of technology developed within the company or
the market (Aralica and Racic 2007).

5. Different levels of capacity planning

Capacity is the basic planning category which derives in other individual plans of various activity
contents and intensity. For instance, the production plan is derived from the capacity plan. Sustainability
investment plan was derived from the capacity plan. Capacity is the basis for the direct workers planning.
Fixed costs are in capacity etc. A production plan is used to carry out other supplementary individual
plans such as working capital plan, material resources plan, procurement plan, sales plan, export plan,
import plan, preparatory plan for individual phases of the work process, the marketing plan, as well as a
master plan of the company and so on. Capacity planning is the broadest strategic function.

The organization can increase the global technical capacity by expending processes or by opening new
factories, designing new products, opening new offices or moving to a different location. It can also
reduce the overcapacity by closing or ceasing the work of certain unprofitable facilities; by selling them
or assigning them under certain conditions. These are strategic decisions with long-term consequences.
They laid the foundation for the next level of planning that includes tactical and operational plans.
Indicators of innovation company capacity are valid if (Maroulis and Tsipoura 2013):

(a) The relevant: there is a clear link between the indicators and targets to be achieved;
(b) Restricted: focusing on a limited number of key indicators;
(c) Comprehensive: discuss the main aspects of innovation activities and performance of company
realized;
(d) Accepted: there is an agreement with the main stakeholders on the acceptance of indicators and
units of measurement that will be used;
(e) Authentic: easy to interpret and unambiguous for a large number of innovation stakeholders;
(f) easily accessible: easy access to resources;
(g) Reliable: the appropriate level of accuracy as evidence against the manipulation of the user;
(h) Consistent: include precise definitions and measurement methods;
(i) Comparable: allow comparisons between countries, programs and organizations, etc;
(j) subject to audit: the possibility of an independent audit, access to third parties on request.

The organization can change its capacity by providing the leasing of its excess space, by working
overtime, hiring of staff for a limited time or connecting parts operations through increased fund effective
working hours. These are clear tactical and operational decisions. Therefore, capacity planning involves

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decisions at all levels. the strategic plans provide the global picture that is modified by short-term
adjustments.

When planning capacity, it is necessary to bear in mind the view that there is an implicit link between
research and development and investment in research and innovation on the one hand and the company's
ability to adopt and use the existing realities (Tugrul et al. 2014). Therefore, operational strategy involves
long-term planning capacity, which ensures that we are sure that we have enough capacity to meet the
anticipated demand. This leads us to a series of lower plans - tactical and operational. Planning necessary
resources gives a general view of this planning. It begins with finding the required resources enacted by
the higher planning levels and comparing them with available resources. It then creates contingency plans
to overcome the differences, a comparison of these alternatives and implementing the best ones.

In practice, planning is difficult and usually has a common view of obtaining a generally acceptable
result. Therefore, the tactical plans include aggregate plans and deployment capacity. Aggregate plans
provide a way to the creation of similar products typical for each of the next few months. The aim of this
plan is to come up with demand while keeping within the existing capacity.

There are many ways to create aggregate plans, ranked by inference, the schedule tables to mathematical
models. Subjective factors and other complications indicate that experienced planners usually represent
a significant input.

When details are added into the plan, it creates a schedule of capacity utilization. It provides a schedule
for the creation of individual products, usually every week. Creation of this schedule is similar to the
aggregate planning and similar methods can be used. The need for subjective decision means that
planners probably use heuristic rules in operation.

6. Globalization and location

The choice of location for the production capacity of the company is, based on dynamic analysis of the
location factor, aimed at choosing a housing in which the total sum of prospective production costs and
trade will be the lowest per unit of a product, whereas ratio of investment and financial effects will fit
into limited framework for the fulfillment of the other conditions of possible agreements or arrangements
on the basis of business relations.

The choice of wider location has, not only economic but social and political importance, as the quality
of these decisions has a dominant influence on the structure of regional development and the conditions
of development of other segments of the economic structure and social standards of the population and
the wider environment. We emphasize that by the technology progress and changing social attitudes, the
intensity of the impact and importance of investing in factors that influence the location are changing.

New world processes and new social relations bring new criteria in the direction of equalizing conditions
of economic growth and a gradual reduction in the level of development. This claim would be valid only
in terms of "fair" regional economic development and with the direct support of highly developed
countries. Unfortunately, the technological gap that at the beginning of XX century was 1: 3, which is a
ration between developed and developing economies and countries, has been growing and moving in the
ratio 1: 450 system. Instead of decreasing, which would be a humane economic trends and global desire
of the majority of humanity, it is deepening and increasing ever more. Deepening the gap lies in the fact

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that the highly developed countries can put more scientific and technical potential in the service of
development, and therefore, can move forward with a stronger pace and with greater intensity than the
small and underdeveloped countries can.

Knowing the location and specific requirements of certain types of production is important for solving:
• the location of new industrial and other economic as well as infrastructure capacity;
• deciding on reconstructions and expansions of existing facilities;
• deciding on forms of integration and decentralization of capacity.

When it comes to decisions about the location, they are very responsible and professional task that
requires a comprehensive and precise consideration of complex issues related to housing and prospective
development of new industrial capacity.

This needs a positive approach to innovation, (Mosurović and Kutlača 2011) as innovation in the
organization of the company increases its efficiency by improving inter-organizational processes, on the
one hand, and through networking with partners outside the organization (customers, suppliers,
consultants, research institutions, etc.). Here we have to conclude that in the case of optimal site selection
of new capacities for their expansion, the benefits of a good location will increase over time, whereas in
case the wrong location, expanding the capacity of these companies will underline further negative
consequences over time.

Indirect and direct basic investments, since they do not differ much depending on the location, can be
neglected, especially their study related to a specific location and awareness for consideration within the
analysis of the efficiency of the whole concept of investing in a particular company.

And then we experienced globalization as an expression of force and power. The question is, why have
we discovered it only now and why was continuity broken. "I am your Lord God and thee shall have no
other gods before me." Is this globalist attitude? Yes. "Workers of the world unite" is also globalist
attitude. Empires throughout history, and colonialism, conquest wars… all those occurred as an
expression of force and power or as opportunity to strive for the establishment of justice and balance.
Unfortunately, force is always stronger, regardless of whether it was based on the weapons or money,
rarely on knowledge and never in justice.

In the analysis of the cost structure of existing similar facilities in the country and abroad, as well as by
studying the approximate structure of anticipated costs for the planned new capacity, we get some
approximate idea of the intensity of the impact of certain cost elements on the economic effects of the
company. Depending on the impact intensity of the certain factors of location, the economic effects in
exploitation, their awareness is directed primarily, or preferably in contemporary economic conditions
in:

1. Centers of raw material and energy sources,

2. The centers of consumption,
3. centers that abound in labor and
4. communication centers.

It is necessary to emphasize that in practice, these problems must be solved to a greater or lesser extent
on the basis of certain compromises.

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The management of global operations is a result of unequal distribution of resources in nature and
societies (Yongjiang S, Gregory M. 1998). The first paragraph refers to raw material and energy
resources and the other on the human and non-material resources. Human resources, that have knowledge
and skills as a foundation, with an emphasis on improving the quality and reproducibility, have the task
to achieve the mobilization of knowledge about other types of resources, their availability, quality,
quantity and spatial distribution with an emphasis on concentration of geographic spatial framework.

Global operations include four main decision dimensions

• Location: where to set the capacity?
• Production: what to produce, where?
• Raw materials: from whom to buy, what and how?
• Support: how to improve the flow of goods and information?

These decisions are contained in the network of global business (Haigh 1990). The choice depends on
the type of capacity and its role in the network. Procurement would be located at the site where the
resources and suppliers are available, while distribution centers would be located close to the developed
markets. Rome, Paris, Moscow, Berlin, Amsterdam in Europe, New York and Los Angeles in the US,
and Sydney, Melbourne or Porto in Australia, play a huge role as a distribution and logistics centers in
their regions because of their favorable geographical location and high level of infrastructure. Another
destination would be chosen in the field of computer software for their programmers with extensive
knowledge and low labor costs.

The network of global production business has been established in the integrated production centers
deployed worldwide. We can fully define two types of global networks: the production network and
service network.

The strategic role of the production factors has been changing over time, so based on extensive
comprehensive researching carried out by Kasra Ferdovs 1997 year. We have defined a model for
production center classification in the global network, starting from defining their different strategic
roles. This classification is based on two main variables:

1. The primary strategic reasons for investing in capacity in a country would be: to have access to cheap
production;
access to the expertise and skills; access to the market.

2. The competence of the system in a function of the various tasks that are set would be: taking
responsibility for production; maintenance of the achieved level of technical process (responsible for
maintenance); local purchasing market (raw material / logistic responsibility); process improvement;
improving relationships with suppliers; development of operation processes; improving production;
product development (product development responsibility); supply the global market and striving to
become a global force for the product and process knowledge.

Based on these two dimensions, Ferdows recognizes six types of global organizations in the network
(Ferdows 1997).

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Fig. 2. Strategic role of international capacities and their evolution (Lasserre 2003)
Possible development paths are illustrated by arrows in the figure. In general, the combination of different
types of capacities comprise the global production network in which all production centers are in mutual
dependence to some degree. Construction of the network capacity with a change of their roles, imposes
the need for their evolution in relation to the possible new opportunities and competitive pressures.
Ferdows recommended design of, as he called it, a stable network that evolves without prejudice to
drastic measures such as closing plants, or to quickly switch production from one country to another.
Sensors of capital and globalization processes agree to these attitudes (Todosijević Lazović et al. 2016).

In addition to the traditional role of foreign factors as supply basis, De Meyer and Vereecke added a
role to create information and knowledge (Meyer and Vereecke 1994). They define four main
categories of capacities in the network:
1. singled capacities;
2. The following capacities:
3. domestic capacity and
4. innovative capacity.

It will be shown that under the influence of unequal distribution of resources in nature and society,
there will be continuous changes in the relative role of individual factors that will dictate the
development and location choices. The greatest attractive force are raw materials, energy, cheap and
qualified labor force, where the raw materials and energy emerge as central issues of contemporary
technical progress observed worldwide. The third central problem of modern technical progress lies in
the production of the work tools at a high level of production and economic efficiency.

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The potential and the characteristics of the market and competition are the most important
determinants of choice of production profiles, the size and the level of modernity capacity.

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Figure 3. inter-dependencies in production profiling and capacity profiling (Todosijević 2010)

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The level of useful properties of the competitors’ products and a technical and business level of
competitors - with who we are about to confront in a market where we plan the placement of our products,
should represent, preferably, a lower limit which is necessary to achieve and preferably surpass and with
new capacities, bearing in mind that competitors will not stagnate in the development of their products
during the construction of our new capacity (Todosijević et al. 1995).

The ideograms shows, in the field of mechanical processing technology, a systematized gradual process
of integration and aggregation of the basic techniques of treatment of various degrees of complexity with
different levels of control technology, - transport, - measurement - control - Registration effect - remote
control, information and self-regulation.

As a result of this process of integration and aggregation of basic processing operations of various
complexity degrees, the techniques of control, measurement and control of machine, the new machines
of higher level of efficiency have been developed on basis of the lowest forms of mechanized means of
work, such as: standard design universal and production machinery, then the special standard-production
machines and semiautomatic and automatic machines for complete processing of simple parts, then
special machines and automated aggregate blocks of machines for complex processing of complex
elements, to the system of complex automated production systems based on cyber security with the
highest degree of self-regulation production efficiency and capabilities to substitute human labor.

As a rule, by increasing degree of mass production and the effectiveness of applied techniques, the degree
of the production process continuity increases, and thus the efficiency of equipment utilization.

When profiling production orientation and capacity of a company, we tend to create objective conditions
for the rational application of higher level efficiency techniques, since the process of intensifying the
substitution of human labor with machine is “must” in the modern industrial society, which has its own
compelling economic incentive, expressed per unit of useful effect.

The achieved high degree of integration and self-organization of a company can accelerate progress in
line of effective implementation and the conquest of products in technical progress, which are
characterized by high profitability and high degree of complexity, that are therefore, developed in the
industrialized countries with the most developed material and technical base.

In industries, based on mechanical processing and assembly of parts, with the formation of the production
profile and the capacity profile, we are in a dilemma how to, on the one hand, meet the demand for
creation of objective conditions for the economical application of higher level efficiency technique,
exploited in systems of production with high as possible degree of continuity; and, on the other hand, we
are facing a problem how to satisfy both the second request, for resilient customizing of products to
increasingly differentiated needs of the economy and society (Todosijević Lazović 2010). Meeting the
first requirement imposes the need for conscious narrowing and sharpening of a company production
orientation, while increasing the level of concentration of production and capacity, as illustrated in
ideogramme.

The possibilities of modern science and technology are most evident at specialized equipment intended
for the types of higher levels of mass production, where it is possible to achieve a high degree of
integration and aggregation of the drive mechanism and the basic tools of processing with the technique
of measurement, regulation and control of machine or engine systems . Please note that in the domain of
economic theory, the designed capacity of the company may be viewed through different approaches:

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the approach based on resources that suggests that the internal capacity of the company are key elements
of the technological development of the company. Another approach is based on the theory that
contingency suggesting that the success and survival of the company in fact is a response to the impact
of enterprise environments. This indicates that the nature of innovation as well as entrepreneurial and
investment performance is relative and primarily determined by internal resources and factors of
environment (Daim et al. 2014).

Conclusions
The starting assumption is the fact that the capacity profile strives to achieve such a level of production,
and cooperative cooperation which should enable minimization of sums of development costs and the
transport cost, taking into account the savings in investments, as well as on the use of others that exist in
the environment. Under the influence of technical progress, the criteria of "normality" is constantly
moving on to more and vertical and horizontal stages of the process, so this represents a definition of
new levels and the optimum criteria. Technical progress does not bypass any activity which binds to
either the product or the production of, or for the size of the scale and the level of the capacity of modern
times. Turbulent environment, achievements in science and technology, a willingness to innovate, and
the growing impact of globalization aided by sensors capital, unmistakably directed investment activities
in the capacity of those areas where they will be most fruitful capital at risk, which is permitted and
which can be controlled. The complexity of products carries with it a presumption of developing forms
of production and business cooperation (specialization, cooperation, typing, standardization), which
carries with it a presumption of dislocation of production and logistics capacity matched with
continuously rhythm. The sheer size of the capacity as a dynamic category, appears as a compromise
between the available inputs, the rational possibilities of obtaining additional sources on a longer time
projection and current and prospective perceived purchase demand, except that the potential and
characteristics of the market and competition are the most important determinants of the choice of
production profiles, sizes and the level of modernity capacity.

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