Factory system was manufacturing process that was introduced in the late 18th century when concentration of industries took place during the Brotish Industrial revolution in replacement of the Domestic system which applied hand tools (simple machinery).

Originally, Factory system was marked by application of water power later replaced by Steam Engine for cloth weaving industties owned by industrial urban bourgeiosie by concentrating workers in towns/cities.

It was characterised by the use of machinery, centralised work place, division of labour, unskilled workers taught simple tasks, and standardised parts for the products.