Factory system makes use of division of labor and machinery
to in producing goods and services.
Everything is centralized and production is more standardized to ensure
uniformity. In the putting-out system
deals more with sub-contracting to finish a certain task. It employs craftsmen and it had a flexible
period. It was convenient because many
of these people lived near the workplace.
Eventually the factory system replaced the pull-out system as industrialization
grew.
