<P> Richard Arkwright is the person credited with being the brains behind the growth of factories and the Derwent Valley Mills . After he patented his water frame in 1769, he established Cromford Mill, in Derbyshire, England . The factory system was a new way of organizing labour made necessary by the development of machines which were too large to house in a worker's cottage . Working hours were as long as they had been for the farmer, that is, from dawn to dusk, six days per week . Overall, this practice essentially reduced skilled and unskilled workers to replaceable commodities . </P> <P> Mass production using interchangeable parts was first achieved in 1803 by Marc Isambard Brunel in cooperation with Henry Maudslay, and Simon Goodrich, under the management of (with contributions by) Brigadier - General Sir Samuel Bentham, the Inspector General of Naval Works at Portsmouth Block Mills at Portsmouth Dockyard, for the British Royal Navy during the Napoleonic War . By 1808 annual production had reached 130,000 sailing blocks . This method of working did not catch on in general manufacturing in Britain for many decades, and when it did it was imported from America, becoming known as the American system of manufacturing, even though it originated in England . </P> <P> Much manufacturing in the 18th century was carried out in homes under the domestic or putting - out system, especially the weaving of cloth and spinning of thread and yarn, often with just a single loom or spinning wheel . As these devices were mechanized, machine made goods were able to underprice the cottagers, leaving them unable to earn enough to make their effort worthwhile . Other products such as nails had long been produced in factory workshops, increasingly diversified using the division of labour to increase the efficiency of the system . </P> <P> Factory workers typically lived within walking distance to work until the introduction of bicycles and electric street railways in the 1890s . Thus the factory system was partly responsible for the rise of urban living, as large numbers of workers migrated into the towns in search of employment in the factories . Many mills had to provide dormitories for workers, especially for girls and women . </P>

Where are goods produced in the domestic system