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The tutorial demonstrates how to assign record type IDs using Process Builder and Flow without hardcoding them. It explains the limitations of Process Builder in assigning record type IDs and suggests using Flow to solve the issue. The example provided shows how to set record type IDs based on milestone names, such as setting a record type ID for "Background Check" based on the milestone name "Performed Background". This method eliminates the need to manually update record type IDs when deploying from sandbox to production.