The American system of manufacturing, developed by Eli Whitney in 1799, involves semi-skilled labor using machine tools and templates (or jigs) to make standardized, identical, interchangeable parts, manufactured to a tolerance.
Since parts are interchangeable, it is also possible to separate manufacture from assembly, and assembly may be carried out by semi-skilled labor on an assembly line - an example of the division of labor.
In order to eliminate hand tools, Whitney invented new machines to eliminate all skilled operations - introducing a kind of router to replace the chisel, for example.
Until then, under the English System invented during the Industrial Revolution, skilled machinists were required to produce parts from a design. But however skilled the machinist, parts were never identical, and each part had to be manufactured separately to fit its counterpart—almost always by one person who produced each completed item from start to finish.
Although there was still a requirement for the craftsmen to create prototypes of the design before production, they were no longer required in the actual manufacturing.
Whitney first used the system to manufacture muskets. Such was his reputation that the U.S. government gave him a contract for 10,000 muskets, to be produced within two years, even though he had no factory or machines. It actually took eight years to deliver the order, as Whitney perfected and developed new techniques and machines, but he did go on to produce a further 15,000 muskets within the following two years.
The idea was first developed in Venice several hundred years earlier, where ships were produced using pre-manufactured parts, assembly lines, and mass production. The Venice Arsenal apparently produced nearly one ship every day, in what was effectively the world's first factory.
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