The fiber is gathered from the sheep, alpaca, ox or from plant materials. These fibers are specially prepared into filaments. These filaments are carded so that thay lay in the same direction for spinning. The carded fibers are twisted (spun) to achieve a yarn. This yarn in then rolled into skeins and packaged for sale.
First the sheep are sheared. Then the wool is washed or scoured. The clean wool is carded or combed so that the fibers generally run in the same direction. Spinning turns the carded fibers into yarn which may be used in knitting, crocheting or weaving. It may be dyed at most steps or left natural.
After shearing, the wool is cleaned to remove grease, dirt, and vegetable material. The clean wool may be dyed at this point. It is then carded to align and untangle the wool fibers. The carded wool is then spun to so that the fibers lock together into yarn. The yarn may be dyed if the wool wasn't dyed previously.
The sheep is sheared. The fleece is cleaned by cutting the edges and removing foreign matter. The wool is washed and picked. Picking fluffs it. The wool is then carded by putting it through a series of combs. Then it's wound on spools and spun. It's either dyed then, or "dyed in the wool" after cleaning.
After the wool is harvested from the sheep it is sent to a factory where it goes through an intensive cleaning process. After cleaning some wool is sent to a coloring facility and the rest is sent to a dryer where it is pulled dry, then twisted into spools or balls.