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You need to put ALL your items in the factory's storage box. It only picks materials from here.
Each furnace you install adds "furnace slots", like 10 slots. A comprehensive grinder will add 4 slots of grinder and 6 slots of furnace, as it is both.
Starting a craft takes up slots, depending on the item. For exemple, copper bars will take 1 furnace slot, concrete will take 4 blender slots. Meaning the more furnaces you install, the more things you can smelt at once.
You can also craft things faster : instead of making one queue of 8 steel plates, you can make 8 queues of 1 steel plate. It will take more slots, but you will receive 8 steel plates in the time it takes to make only one.
Adding machines basically only gives you more slots, letting you craft more things at once.
I wouldn't put comprehensive stations inside the factory, as its mix of different slots are a bit confusing. Personally, at factory lvl1, I have 4 furnaces, 4 grinders, 4 cutters, 4 skewers, 1 electric furnace and 3 blenders.
But at least I don't have to place 10 furnaces in my garden anymore...
Actually I have to go and say: okay 40x times yes, make 1 carbonsteelbar....yes again...yes again...idea of factory is nice, but sometimes not thought to an end...anyway, I have work to do, this factory won't optimize on it's own ;-)
I understand you, this factory seen to confused a lot of people. Very good luck and be patience you will get it to work better in not time.
To use more slots, click the "multiple" button next to the one you're already clicking. The first pop up will ask how many items you would like in one slot. The second is how many slots you want being used at once. So for your 40 carbon steel bars, you could enter 4 in the first box (putting 4 bars in each slot), then 10 in the second box (use 10 slots).
Hopefully that makes sense!