The process involved in designing and producing railroad trains is very lengthy.
Just getting the materials list can take 5 to 7 months and that is if everything goes well.
The time from initial design approval to actual production ranges between 12 to 18 months.
All of the pre-production and design costs are absorbed by the company prior to the first train rolling off the production line.
Once the engineers confirm the accuracy of materials and design specifications the purchase orders can be released.
The companies bidding for the contracts are notified - often the lowest bidder is awarded the contract.
Most materials are received within two months, except for the motor which usually takes three months.
All components must be received prior to production.
Once all the parts have arrived, the actual production time for the train can be as short as a few days.
Some designs are similar to previous designs so that helps to reduce production time, but many hours are still spent producing every single model.
Artwork can take as long as 3 months to prepare, depending upon the complexity of the color schemes used.
Sometimes, all of the artwork can be completed while awaiting delivery of the train parts.
The first production run of a new model train line is nearly always the most financially successful with profits for additional production runs dropping by 80%.
Therefore, the pre-sale of the first production run is critical and must generate enough cash to pay off the investment in that model and finance future model development.
Successful models may have a second production run in the same year.
Most models are produced twice a year; extremely popular models may have three or four runs in the same year.
The pre-production of a train can cost more than building a new house.
For that reason, manufacturers limit the number of models in production at one time.
Good planning and exact timing in the development stages is as important as the quality of the finished product.