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Division of Labour

Also called The pin factory

Splitting production into specialised tasks raises output far beyond the sum of individual efforts, but narrows the worker.

Smith's 1776 pin factory: ten workers dividing eighteen operations produced 48,000 pins a day, against perhaps twenty each working alone. Smith also warned in Book V that the divided worker becomes as stupid as it is possible for a human to become.

In practice

  • A software team where one person writes the schema, one the API and one the tests ships more than three generalists, and none of them can now do the others' work.
  • A restaurant with a dedicated prep cook, line cook and plater serves four times the covers, and the prep cook has stopped learning to cook.
Further reading
Wikipedia
Subject
Economics & Incentives
Essay
The theories behind every argument about money

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