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Software Factory

Coordinate agents across the whole software lifecycle.

A coding agent speeds up one developer. A Software Factory coordinates agents across planning, implementation, review, deployment, and operations. People set the intent, own the rules, and remain accountable for the result.

People curate intent | deterministic gates check every change | your team runs the system

Illustrative Factory run

Factory run running

In 60 seconds

The Factory is the delivery system, not the coding agent

People set intent and boundaries. Agents execute bounded steps. Deterministic gates produce evidence. Your team owns the system and expands autonomy only where feedback and risk allow it.

The moving constraint

More output reveals the next constraint

Deployment comes first: if the architecture cannot support frequent releases, nothing downstream can flow. Once that foundation is in place, Build becomes the constraint. Agentic Engineering then moves it to review, intent, and learning.

Intent: Work is not bounded clearly enough. Build: Environment and context slow execution. Review: Plausible output exceeds judgment capacity. Deploy: Infrequent releases block every later improvement. Learn: Production feedback reaches the next run too late.

  1. 01

    Intent

    Work is not bounded clearly enough.

    Current constraint

  2. 02

    Build

    Environment and context slow execution.

    Current constraint

  3. 03

    Review

    Plausible output exceeds judgment capacity.

    Current constraint

  4. 04

    Deploy

    Infrequent releases block every later improvement.

    Current constraint

  5. 05

    Learn

    Production feedback reaches the next run too late.

    Current constraint

The distinction

Faster developers do not automatically create a faster organization

Agents inside individual editors shorten coding sessions. The delivery system around those sessions can still move at its old pace.

Scattered agent use

The products are available, but each person uses them differently.

  • Context lives in private sessions and disappears with them.
  • The agent writes code. Planning, review, deployment, and operations stay unchanged.
  • More generated code reaches the same review capacity, so the constraint moves downstream.
  • The organization cannot show what changed in delivery.

The investment amplifies gaps that were already present.

A working Software Factory

People, agents, quality gates, and feedback operate as one system.

  • Intent, context, rules, and gates live in the repository and apply to every run.
  • Agents work across planning, implementation, review, deployment, and operations.
  • Deterministic checks decide what proceeds. People decide what should exist.
  • Delivery data shows what improved and where the next constraint sits.

Speed comes from the system the team shares.

Agents write the code. Review is where it piles up

More pull requests can overwhelm the same review capacity. A Factory can add fixed checks and agent review before human judgment, reducing avoidable work in the queue.

Pull requests Review Merged

The path

Individual speed is not organizational velocity

Coding sessions can get shorter while cycle time, delivery measures, and the backlog barely move. Agent use is an early level. The rest of the climb coordinates systems, parallel runs, and the delivery organization around them.

AGENTS WRITE THE CODE False summit STEP 01 Systems orchestrator STEP 02 Fleet commander STEP 03 Factory operator Stack Overflow Developer Survey 2025: 69% of agent users say agents made them more productive, but only 17% say agents helped their team work better together.
  1. L1 False summit

    Ad-hoc adopter

    Technical
    Developers copy and paste code into a chat window.
    Organizational
    There is no shared setup. Results swing from person to person.
  2. L2 False summit

    Structured collaborator

    Technical
    An agentic engineering product sits in every editor. Typing gets faster.
    Organizational
    Every developer types faster. The team ships no sooner.
  3. L3 False summit

    Agent manager

    Technical
    Agents write code against a strict harness. You are on the loop, not in it.
    Organizational
    Reviews pile up and velocity stalls. This is the velocity trap.
  4. L4 Step 01

    Systems orchestrator

    Technical
    Agents run asynchronously across repositories, triggered by an issue rather than a person at the keyboard.
    Organizational
    Velocity becomes predictable. Gates catch the obvious bugs; people judge the subtle ones.
  5. L5 Step 02

    Fleet commander

    Technical
    One engineer runs a fleet of those loops in parallel.
    Organizational
    One engineer ships many merged pull requests a day without writing every line by hand.
  6. L6 Step 03

    Factory operator

    Technical
    The pipeline runs agents end to end behind deterministic gates.
    Organizational
    The whole organization ships. No single person sits in every loop.

You build the Factory that builds the product

A Software Factory is the system that builds your software. Engineering attention moves from writing every line to designing and steering the system that produces changes.

A coding agent

Sits in your editor. You trigger it, watch it, and review every diff because almost right is still wrong. It makes you faster at typing. The bottleneck stays.

A Factory of agents

Can run bounded lifecycle steps on a schedule or trigger. People read the evidence, steer the rules, and remain accountable for what ships.

Deterministic orchestration

Code sequences the agents, not ad-hoc prompts. The run is repeatable.

Automation ratchet

Repeated corrections can become rules or tests, so later runs start with more useful context.

The lifecycle

What happens between intent and production

The sequence starts with curated intent and continues after merge.

Intent

Curated intent and planning

People decide what should exist and express it in a form agents can read. Requirements, context, and constraints become a plan that a person checks before implementation begins.

Implementation

Implementation and tests

Agents write code and tests inside the team's architecture and rules. Each change carries evidence that it behaves as intended.

Convergence

Review and convergence

Automated checks, agent review, and human review work on the same change until it meets the team's standards. Work that does not converge returns to planning.

Operations

Deployment and operations

The sequence continues into monitoring and incident response. Production signals become input for the next planning cycle.

Technical guardrails

The controls that keep agents inside useful boundaries

The quality of the surrounding engineering system determines how much autonomy it can support.

Context

Context engineering

Domain knowledge, standards, examples, and constraints live in layers inside the repository. Every run starts with the context the team uses in real delivery.

Boundaries

Architecture boundaries

Domain boundaries, modules, and API contracts limit the surface one change can touch. Small change radii make agent work easier to verify.

Evidence

Tests

Tests are executable specifications. They tell agents and people whether a change holds without relying on interpretation alone.

Deterministic

Quality gates

Builds, types, linting, tests, security checks, and coverage apply fixed rules. A gate checks evidence; it does not vote.

Learning loop

Feedback

Repeated manual corrections become rules, tests, or examples. Each run and production incident improves the context for the next one.

Inside the Factory

One explicit pipeline from planning to operations

This reference diagram maps the agents, human decisions, platforms, and feedback loops that can make up a Factory run. It is a design model, not a live customer system.

Runs with Pi Codex Claude Code OpenCode
Agent automation Human input Platform service Feedback loop Feeds node Triggered by node
PlanningBuildReviewDeployOperateFeedback loop: incidents, improvements, and new rules return to planningHuman inputFeature plannerFeedback digestProduct improverNeeds humanrequeueStale issuereviewerFeature builderBug fixerRemote sessionsPR reviewerPR shepherdCIDeploy platformDeploy workflowsPost mergeverifierUI verifierIncident responderPerformancemonitorAutomation auditorDaily metricsWeekly recapUpdate drafter
  1. Human input: Defines product intent, creates work, answers escalation questions, and starts a remote session when judgment must stay in the loop.
  2. Feature planner: Triages new work, checks whether the intent is sufficient, classifies risk, and routes ready items into the backlog.
  3. Feedback digest: Combines user feedback and usage signals, then files enhancements or priority bugs with their evidence attached.
  4. Product improver: Audits the live product. Low-risk improvements enter the backlog; high-risk changes wait for a person.
  5. Needs-human requeue: Detects a human answer to an escalated item and sends the work back through triage instead of leaving it blocked.
  6. Stale-issue reviewer: Finds claimed work that stopped moving, releases it for another run, or escalates repeated failures.
  7. Feature builder: Claims a feature, implements it against the repository rules, runs tests, and opens a pull request.
  8. Bug fixer: Claims a priority bug, reproduces the failure, fixes it, verifies the result, and opens a pull request.
  9. Remote sessions: A person and an agent work live on architecture, debugging, refactoring, or other work that needs continuous judgment.
  10. PR reviewer: Checks the change against its intent, repository rules, and test evidence, then reports findings before merge.
  11. PR shepherd: Finds stalled pull requests, nudges their review, and closes duplicate work before the queue grows.
  12. CI: Runs deterministic builds, tests, security checks, and other fitness functions, then reports their status to review.
  13. Deploy platform: Builds and publishes the merged change into a production-like or production environment.
  14. Deploy workflows: Runs the post-merge workflows that notify verification when a deployment is ready.
  15. Post-merge verifier: Checks the deployed change immediately after merge and files a priority bug when production behavior is wrong.
  16. UI verifier: Exercises the deployed interface in a real browser and turns visible regressions into actionable work.
  17. Incident responder: Investigates an incident, identifies the likely cause, and routes a hotfix or follow-up item back into planning.
  18. Performance monitor: Watches runtime performance and files evidence-backed work when a regression crosses its threshold.
  19. Automation auditor: Finds repeated manual corrections, updates Factory rules, and flags stalled review paths.
  20. Daily metrics: Captures daily throughput, autonomy, and CI health so the Factory can be reviewed from evidence.
  21. Weekly recap: Combines the daily snapshots into a weekly account of what shipped, failed, and changed in the system.
  22. Update drafter: Turns verified delivery data into a review-ready internal or public update instead of inventing a success story.

Scroll horizontally through the static pipeline.

The diagram shows decisions and boundaries. It is not a live system and changes with the work.

Snapshot from the Factory dashboard

The line stays observable. Throughput, autonomy, and CI health show where the system moves and where it needs attention.

Issue Time to Close

Issue time to close, by time bucket
<15m
49
15-30m
68
30-60m
69
1-2h
51
2-4h
39
4-8h
8

PR Time to Merge

Pull request time to merge, by time bucket
<5m
188
5-10m
123
10-20m
38
30-60m
20
1-2h
6

Autonomous Rate and CI Health

0% 25% 50% 75% 100%
Autonomous % CI pass %
Autonomous rate holds near 85 percent while CI pass rate sits near 98 percent, with one drop to 50 percent.
Day Autonomous % CI pass %
Apr 14 97% 98%
Apr 16 86% 98%
Apr 18 85% 98%
Apr 20 82% 97%
Apr 22 87% 98%
Apr 24 85% 94%
Apr 26 85% 50%
Apr 28 85% 98%
Apr 30 85% 98%

Recorded across nine Factory runs in April. This is an internal system snapshot, not a client outcome or a live feed.

Why it works

AI multiplies what you already have

DORA describes AI-assisted development as an amplifier of the surrounding system. The Software Factory work focuses on that system: context, quality, feedback, and ownership.

DORA's 2026 ROI research: 88% of agentic-AI early adopters see returns when the surrounding system supports the work.
  • Trust in AI
  • A quality internal platform
  • AI-accessible data
  • User-centric focus
  • Automated guardrails
  • Designed for model portability

    We keep context and gates separate from one model where the selected integrations allow it. A replacement still needs evaluation against your code and acceptance criteria.

  • Your approved boundary

    Code handling, data residency, and model access follow the deployment model, vendors, data classification, and security rules your organization approves.

  • Knowledge transfers to your team

    Agreed context, configuration, gates, pipelines, and documentation stay in your repositories. Internal owners learn to operate and improve them.

Organization and ownership

The technical system needs an operating model

A Factory changes who decides, who steers, and who owns the delivery system after the pilot.

Steering

People curate intent

Product and engineering leaders choose outcomes, constraints, and acceptable risk. Agents can propose plans, but people remain accountable for the work entering production.

Decision rights

Rules have named owners

Architecture boundaries, quality gates, and escalation paths need owners who can change them when the evidence changes.

Transfer

Your team owns the Factory

Context, agent configuration, gates, pipelines, and documentation stay in your repositories. Internal owners learn to operate and improve them without us.

Portability

Models can change

The surrounding context and gates should not depend on one model vendor. Results differ between models, so every change still needs evaluation against your real work.

The direction

Your people steer. The Factory carries bounded work

As the feedback system becomes stronger, people can spend less attention on routine diffs and more on intent, architecture, risk, and outcomes. The safe level of autonomy depends on the codebase, quality gates, deployment model, and operating responsibility.

We test these practices in production work and transfer what holds up in the client's context.

Explore the hycle hypothesis (German)

Engagement sequence

From diagnosis to a Factory your organization can run

The Assessment identifies the first constraint. Team Training builds shared practices. A Pilot tests the system in one real value stream, and rollout extends what the evidence supports. Community supports developers alongside these engagements.

  1. 01 | Diagnose

    A decision point with evidence and a prioritized roadmap.

    Factory Readiness Assessment

    Establish the baseline, identify the first constraint, define an outcome hypothesis, and decide what should happen next.

    Assessment details
  2. 02 | Enable

    Shared practices and a possible Pilot team.

    Team training

    Your team builds context, agents, and quality gates on its own stack and code, then leaves with working artifacts in its repositories.

    Training details
  3. 03 | Test

    Scope follows the Assessment evidence.

    Factory Pilot

    Run one Factory slice in a real value stream, with delivery data and operating boundaries the organization can inspect.

    Pilot details
  4. 04 | Extend

    A program shaped by the Assessment and Pilot.

    Rollout & scale

    Extend the Factory to more teams, establish platform ownership, and change the operating model where the Pilot identified a need.

    Rollout details

Experience behind the Factory

Our work with engineering teams shapes how we build the Software Factory. The organizations below have worked with h&w. Moonfare shows how Agentic Engineering spread through one team. The Hamburg Innovation Award named the Software Factory a 2026 START finalist.

  • IONOS
  • eventim
  • dm
  • Picnic
  • OTTO
  • adesso insurance solutions
  • Breuninger
  • Krombacher
  • bonprix
  • BLUME2000
  • SIGNAL IDUNA
  • LichtBlick
  • XING
  • blau direkt
  • EGYM
  • INFONIQA
Outcome: 20 engineers using it daily Pilot
We went from 2 engineers playing with agentic coding to 20 using it daily. We've created 17 skills and 9 agents available to every engineer. Skeptics now embrace it. We're targeting daily sprints across the development lifecycle by summer.
Tom Hibbert
VP Engineering, Moonfare
Hamburg Innovation Award 2026 START finalist badge Finalist, Hamburg Innovation Award 2026 (START) The Software Factory was a finalist in the 2026 START category.

What to decide before building a Factory

How is a coding agent different from a Software Factory?

A coding agent works inside one person's session. A Software Factory coordinates agents across planning, implementation, review, deployment, and operations.

The shared context, rules, and gates belong to the team. The work therefore changes the technical system and the operating model around it.

What do people remain responsible for?

People decide what should exist, set the constraints, own architecture and quality gates, review risk, and remain accountable for production outcomes.

The Factory changes where developers spend attention. It does not remove engineering responsibility.

How do you prevent generated code from lowering quality?

Every change passes fixed checks such as builds, types, tests, linting, and security controls. Human review concentrates on the judgment those checks cannot provide.

Autonomy expands only where the feedback system can support it. Compliance and security requirements still come from your organization.

Does the Factory lock us into one model?

Context, rules, gates, and pipelines can remain independent of one model vendor. That makes replacement possible without rebuilding the entire delivery system.

Equivalent results are not guaranteed. A different model needs evaluation against your code, constraints, and acceptance criteria.

Where should we start?

Start with one real value stream that matters and has enough complexity to expose the boundaries. The Factory Readiness Assessment identifies that candidate and the first constraint to address.

How do you know whether it works?

We track PR Throughput, AI Utilization, Change Confidence, and Change Failure Rate against a baseline. The organization also defines the business outcome that matters for the selected value stream.

DORA describes AI-assisted development as an amplifier of the surrounding system. That is why measurement includes delivery conditions, not product adoption alone.

Find the first constraint before you build

The Factory Readiness Assessment establishes your baseline, identifies the constraint that matters first, and recommends the next decision for one real value stream.