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The American system of manufacturing involves semi-skilled labor using machine tools and templates (or jigs) to make standardized, identical, interchangeable parts, manufactured to a tolerance. The system is also known as the armory practice because of the history of its development by the United States Department of War in the Springfield and Harpers Ferry armories. 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. The system typically involves substituting specialized machinery to replace hand tools. The American system contributed to efficiency gains through division of labor. Division of labor helped manufacturing transition from small artisanal shops to early factories. Key pieces of evidence supporting efficiency gains include: increase in firm size, evidence of returns to scale, and an increase in non-specialized labor. The need for firms to train uneducated people to perform only one thing in the productivity chain allowed for the use of non-specialized labor.
The Water Shops Armory was part of the Springfield Armory buildings in Springfield, Massachusetts.The original Armory stretched over two city blocks in what was known as the Hill Shops (where the Historic Site now is accompanied by the Springfield Technical Community College which occupies most of the 22 original buildings). In addition, a mile south on a tributary river, the Mill River, is the Water Shops where the heavy metal forging & machining was done as well as gun stock shaping. This area underwent many changes. It was located at this place due to the need for power which was supplied by the Mill River. It is now a privately-owned industrial site. The building was originally a two story building until Friday June 17, 1988 when a fire destroyed part of the top floors. The building was built in two different sections the first was built as an armory in 1858 the second section which paralleled Allen Street built in 1901 is where the fire happened.