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What Do You Mean by Factory System?

Published in Industrial Revolution Manufacturing 3 mins read

The factory system refers to a method of manufacturing that emerged in the 18th century, fundamentally changing how goods were produced. It is characterized by the concentration of industry into specialized, and often large, establishments rather than dispersed home-based production. This pivotal system arose during the Industrial Revolution, marking a significant shift in economic and social structures.

Key Characteristics of the Factory System

The factory system brought about a revolutionary approach to production, moving away from traditional methods like the domestic (or "putting-out") system. Here are its core characteristics:

  • Centralized Production: Work was moved from individual homes and small workshops into dedicated factory buildings. This centralization allowed for better organization and supervision.
  • Specialized Establishments: Factories often focused on specific types of goods or stages of production, leading to increased efficiency and expertise in particular areas.
  • Large-Scale Operations: Factories were designed to handle higher volumes of production, leading to economies of scale and the potential for mass production.
  • Machinery Integration: The system heavily relied on the use of new machinery, powered by water, steam, or later electricity, to perform tasks previously done by hand. This significantly increased output and speed.
  • Division of Labor: Within factories, tasks were broken down into smaller, repetitive steps. Workers specialized in one or a few of these steps, leading to greater efficiency and less need for highly skilled artisans for every part of a product.
  • Supervision and Discipline: Factory owners and managers imposed strict schedules, rules, and supervision over workers to ensure productivity and the smooth operation of machinery.

Impact and Significance

The factory system had profound impacts on society, the economy, and the nature of work:

  • Increased Efficiency and Output: By centralizing production, integrating machinery, and implementing division of labor, factories could produce goods much faster and in larger quantities than ever before.
  • Lower Production Costs: Mass production and increased efficiency often led to lower per-unit costs for manufactured goods, making them more accessible to a wider population.
  • Urbanization: The concentration of factories led to the growth of towns and cities as people migrated from rural areas in search of employment.
  • New Social Structures: It created distinct social classes, including factory owners (capitalists) and a large workforce of industrial laborers.
  • Standardization: Products became more standardized due to machine production and uniform processes, laying the groundwork for modern consumer goods.

To illustrate the stark difference, consider the table below comparing the factory system with earlier manufacturing methods:

Feature Pre-Factory System (e.g., Cottage Industry) Factory System
Work Location Homes, small workshops Centralized factory buildings
Production Scale Small, custom orders Large-scale, mass production
Labor Skilled artisans, family members Specialized, supervised wage laborers
Technology Hand tools, simple machines Complex machinery, power-driven
Supervision Self-regulated, informal Strict schedules, foreman supervision
Output Low volume, slow High volume, fast
Costs Higher per unit Lower per unit (due to economies of scale)

The factory system was a cornerstone of the Industrial Revolution, fundamentally reshaping global economies, labor practices, and the daily lives of millions.