To leverage the full potential of cyber-physical production systems (CPPS) in terms of flexibility and adaptability, the development of such systems must go beyond digitization and modularization. During the engineering and operation of CPPS, humans are essential enablers for the system’s changeability. In this paper, we propose a model of an iterative conducive design process that incorporates perspectives and competencies from several research disciplines such as process control, industrial engineering, computer science, and instructional and cognitive psychology. The goal of this approach is to enhance human-machine interaction and to realize efficient functioning of the system via a combination of the unique potentials provided by humans and the system. The proposed iterative approach is exemplified on a practical level in the engineering of a demonstration plant that tests safety systems for modular plants.