  Novel algorithm for designing values of technological parameters for
production of Soft Magnetic Composites (SMC) has been created. These parameters
are the following magnitudes: hardening temperature $T$ and compaction pressure
$p$. They enable us to optimize of power losses and induction. The advantage of
the presented algorithm consists in the bicriteria optimization. The crucial
role in the presented algorithm play scaling and notion of pseudo-state
equation. On the base of these items the mathematical models of the power
losses and induction have been created. The models parameters have been
calculated on the basis of the power losses characteristics and hysteresis
loops. The created optimization system has been applied to specimens of Somaloy
500. Obtained output consists of finite set of feasible solutions. In order to
select unique solution an example of additional criterion has been formulated.
