Engels uses the term Manufaktur, and its derivatives,which have been translated "manufacture","manufacturing", etc., Engels used this word literally, to indicate production by hand, not factory production for which Engels uses "big industry".Manufaktur differs from handicraft (guild production in mediaeval towns), in that the latter was carried out by independent artisans. Manufacktur is carried out by homeworkers working for merchant capitalists,or by groups of crafts people working together in large workshops owned by capitalists. It is therefore a transitional mode of production, between guild(handicraft) and modern (capitalist) forms of production.