The circular knitting machine produces fabric and can be built in varying diameters depending on its intended use. It employs latch needles that allow it to process different yarn types. Key parts include the creel for storing yarn packages, the VDQ pulley for controlling fabric quality, and the MPF or positive feed mechanism. Other important components are the feeders, sinkers, needles, and cams which work together to form loops of yarn and create knitted fabric.