To create energy, Monsters, Inc. primarily used children's screams. However, it was later discovered that laughter produces ten times more energy than screams; as a result, the company now uses children's laughter to create energy for Monstropolis.
Monsters, Inc. is a subsidiary of MonsterWorlds Businesses and its main duty is to provide all citizens in Monstropolis with energy in the form of captured screams collected from children. They accomplish this by crossing into the human world through door technology, portals connected to closets of children's bedrooms, and scaring them to the best of their ability. The screams are then collected in special canisters for use as energy.
The factory is an immense facility equipped to fulfil the needs of its employees. Scaring takes places in chambers called "Scare Floors", where the monsters cross over into the human world with the doors. Each scarer has an assistant to help coordinate the energy collection. Any door belonging to a child who has no fear of monsters is promptly destroyed in the Door Shredder, as their screams cannot be collected and are therefore obsolete.
After Randall and Mr. Waternoose are defeated, Sully became the CEO of the Monster Inc, and created the Laugh Floors and an even bigger canisters for more energy from human kids' laughter due to laughter became ten times more powerful than scream.
Places of Interest
Lobby: This is the lobby located in front of the factory, which depicts various clocks depicting various time zones around the world placed over a mural depicting a world map. On one wall is a "Scarer of the Month" gallery, which for some reason always only showed Sulley (and occasionally Mike). Celia, the factory's receptionist and Mike's girlfriend, works in this area.
Scare Floor D: Seen at the very beginning of Monsters University, this is the scare floor Ms. Graves' class visited on their field trip to the Monsters, Inc. factory. It is also where scarers like Frightening Frank McCay, Earl "The Terror" Thompson (Earl "The Terror" Thompson actually works on Scare Floor F in Monsters University) and Hank "The Tank" Knapp work at.
Scare Floor F: This is the Scare Floor where Sulley, Mike, Randall, and the other scarers and their assistants work. It is a large room where various children's closet doors are brought in from the Door Vault by an overhead conveyor belt and are brought down by lifts on the ground. Then, the scarers enter the doors and try their best to scare as many children as possible to collect more screams. Its supervisor is Jerry. At the end of the film, Sulley after becoming the new CEO converts this into "laugh floors" to reflect the company's new goal of making children laugh.
Roz's Office: This is where Roz works. Her office counter can be separated from the rest of the factory via a retractable shutter.
Men's Locker Room: This is where all of the male scarers and their assistants go to use the restroom and store their belongings.
Simulation Room: This room, featuring a simulated child's bedroom and an animatronic boy dummy, is often used to introduce newcomers to working at the factory. The simulation room is supervised by Flint. At the end of the film, Sulley and Mike both go to this room to trap Waternoose and expose his evil plans, leading Waternoose to be arrested by the CDA.
Hallways: These are just hallways located throughout the factory.
Trash Compactor: This is a trash compactor located in the basement which destroys all waste material left in the factory. The compactor scene is a parody of the Looney Tunes short Feed the Kitty.
Boiler Room: This hidden room, accessed only behind several pipes in a certain part of the factory, is where Waternoose and Randall secretly built the Scream Extractor to help with their evil plans.
Door Vault: The largest room in the factory. The doors are stored in the vault and are brought to and from the Scare Floor by an automated system of overhead conveyor belts in a manner similar to roller coaster tracks. According to the audio commentary for Monsters, Inc., Pete Docter stated that there are about 36 million doors stored in the vault.
Mail Room: The mailing room is where Mike and Sulley started working at this factory when they were both first hired at Monsters, Inc. after being expelled from Monsters University; but through hard work in the mail room, they were promoted to scorers. According to his backstory, Yeti the Abominable Snowman used to work here as Mike and Sulley's mailing assistant but was unfortunately banished to the Himalayas for accidentally messing up with his job.
Scream Can Storage Room: Where the Scream Cans are Stored.
Cafeteria: Where the Monsters Inc employees go to eat.
Because children have begun to like monsters, the company had fallen on hard times, and screams are becoming increasingly difficult to obtain in large amounts. At the risk of an energy crisis, the company's CEO Henry J. Waternoose seeks out new, borderline-criminal means by which to obtain screams, including the kidnapping of children from the human world. His scheme is exposed by Mike Wazowski and James P. Sullivan, who bring Waternoose to justice. The company is temporarily closed down following the arrest of its CEO. However, after Sulley discovers that laughter produces more power than screams, the company reopens under Sulley's new management. Following this, the employees make children laugh now, though it is shown in Monsters, Inc. Scream Team Training that screams is still additionally used.
In the prequel, Monsters, Inc. appears three times. The first time is in a flashback of Mike's kindergarten field trip to the factory when Mike sneaks off into a child's bedroom used by Frank McCay, resulting in him being persuaded by McCay to attend Monsters University; the second time during Oozma Kappa's "field trip" by Mike to help inspire the team, and the third time is when Mike and Sulley are hired in the company's mail room after their expulsion from Monsters University; through their effort and hard work, the duo get promoted through different jobs before finally becoming scarers.
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