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Also the factory can work on several items at the same time, depending on what machines you have put in the factory. Each machine gives a certain amount of what the machine does (example: industrial furnace gives smelting 10, grinder gives polishing 6. these numbers can be viewed in the factory worktop table.) when youre making some lets say steel plates, this will require a some of those numbers for example 1 cutting and 5 smelting, so the more machines you have the more items you can work on at the same time.
This is just some info i gathered from playing around with it for a while yesterday, just my understanding of how the factory works, i hope it helps.
Bubbajoe is correct, you have to turn the crafting count back to zero to cancel a project and yes that is a rather confusing way to go about it.