Končar-Generators and Motors Inc. company has a long-term experience in production of electrical rotating machines. Tough conditions on the world’s market, most of all increased competition and continuous trend in price reduction and increased demands, result in increased complexity of the product thus causing additional demands on the generator development. Electric generator is, despite of its various designs, relatively known product with a long-term life cycle. Although generators are being produced for a long period of time, it is not known whether a thorough developing model and generator design has been made. New calculation methods in the design, as well as new tools, enable simulations of physical conditions of the product and although contribute to better insight into the behaviour and characteristics of the product, at the same time they make developing process more complicated and more demanding. With a systematic approach to the analysis of the generator developing process, additional space for improving the developing process and the design itself can be found, which contribute to the efforts aim, that is development of cheaper product, keeping qualitative characteristics of the product at the same time, such as (besides the basic functional characteristics) required life cycle, delivery time etc. Comprehensive approach to the development of product model and developing process, especially mechanical calculations, would enable insight into relations which are now not entirely visible, i.e., enables simpler and better understanding of the system. By better understanding of the relations and interactions within the system, new possibilities of improving the developing process and generator itself will appear.