Character on staff in bicycle factory (4)
I believe the answer is:
clef
'character on staff' is the definition.
(eg treble clef, symbol on a musical staff)
'in bicycle factory' is the wordplay.
'in' indicates a hidden word.
'CLEF' is hidden in the letters of 'bicycle factory'.
(Other definitions for clef that I've seen before include "Musical key or stave" , "Written musical symbol indicating pitch" , "Item of musical notation" , "Musical notation on a staff" , "Staff symbol" .)