In the writings of Karl Marx and the Marxist theory of historical materialism, a mode of production (in German: Produktionsweise, meaning 'the way of producing') is a specific combination of:
Marx regarded productive ability and participation in social relations as two essential characteristics of human beings and that the particular modality of these relations in capitalist production are inherently in conflict with the increasing development of human productive capacities.
A precursor to this concept was Adam Smith's concept of mode of subsistence, which delineated a progression of society types based on the way in which society's members provided for their basic needs.
According to Marx, the combination of forces and relations of production means that the way people relate to the physical world and the way people relate to each other socially are bound up together in specific and necessary ways. People must consume to survive, but to consume they must produce, and in producing they necessarily enter into relations which exist independently of their will.
For Marx, the whole 'secret' of why/how a social order exists and the causes of social change must be discovered in the specific mode of production that a society has. He further argued that the mode of production substantively shaped the nature of the mode of distribution, the mode of circulation and the mode of consumption, all of which together constitute the economic sphere. To understand the way wealth was distributed and consumed, it was necessary to understand the conditions under which it was produced.
A mode of production is historically distinctive for Marx, because it constitutes part of an 'organic totality' (or self-reproducing whole) which is capable of constantly re-creating its own initial conditions, and thus perpetuate itself in a more or less stable ways for centuries, or even millennia. By performing social surplus labour in a specific system of property relations, the labouring classes constantly reproduce the foundations of the social order. Normally a mode of production shapes the mode of distribution, circulation and consumption, and is regulated by the state.
New productive forces will cause conflict in the current mode of production. When conflict arises the modes of production can evolve within the current structure or cause a complete breakdown.