Software Factories
I don't have a problem with the concept of Software Factories, but I think it's a bad term.
What do you think of when you think of a factory? I think of a smelly place that's got a bunch of union people working machines without really needing to understand the product they're building.
Products aren't designed at the factory; they're manufactured there.
What do you get from a factory? Is it something tailored to your individual needs? No; you an instance of whatever product the machines were configured to produce.
Not a good metaphor.