UCM Factory is used to manufacture (create) UVM objects and components. Apart from creating the UVM objects and components the factory concept essentially means that you can MODIFY or substitute the nature of the components CREATED by the factory without making changes to the TEST BENCH. 

For example, if you have written two DRIVER classes, and the environment uses only one of them. By registering both the drivers with the factory, you can ask the factory to substitute the existing driver in environment with the other type. The code needed to achieve this is minimal, and can be written in the test.

UCM Factory is used to manufacture (create) UVM objects and components. Apart from creating the UVM objects and components the factory concept essentially means that you can modify or substitute the nature of the components created by the factory without making changes to the test bench. 

For example, if you have written two driver classes, and the environment uses only one of them. By registering both the drivers with the factory, you can ask the factory to substitute the existing driver in environment with the other type. The code needed to achieve this is minimal, and can be written in the test.