The place value system is a system where the value of a digit depends on its place, or position, in the number. Each place has a value of 10 times the place to its right.
Dividing a number by ten causes the number to loose one place and then take the next place value to the right.
For example, the number 12,380 has the place value of 1 'ten thousands', 2 'thousands', 3 'hundreds', 8 'tens' and 0 'ones'.
12,380 / 10 = 1,238
where, the number 1,238 has the place value of 1 'thousands', 2 'hundreds', 3 'tens' and 8 'ones'.