Today's technical and technological development, as well as the development of a modern man consciousness, resulted with the existence of large production capacities in manufacturing businesses in one hand, with expressed consumers individual needs on the other hand. The struggle for existence has become more demanding, motivating manufacturers to meet consumers needs with better quality. This implies a flexible production of individual or small scale products for well-known customer. As carried out by the research, this type of production can be organized with application of relationship marketing principles. Within technical and technological terms, it is necessary to use capital-intensive production that would be capable of producing individualized products for known customers. Thanks to the existing technologies, today it is possible to organize such production. Considering the potential of technological development, it is to expect the production for well-known consumer to become the dominant type of production for physical products. Studies have indicated the need of a model development approach due mentioned transition, therefore as an result of the research, a conceptual model of the new production philosophy was defined representing the core for the realization of so called "smart factory" that are the essential part of the fourth industrial revolution. Synthesis of research results have led to conclusion that in today's consumeroriented society the individual consumer needs are constantly changing existing ways of physical product manufacture, redirecting it from large-scale and mass production, which dominated in the business world around 70s to 80s of the last century, to a new type of flexible manufacturing systems customized for personalized products made exclusively for individual.