The Knit-O-Matic is an invention in A Close Shave which Wallace created. One inserts a sheep and the sheep is washed, dried and sheared in three seperate stages, while the wool is knitted into a sweater. The machine can also be programmed to only give a wash. Wallace mentions that the washing aspect of the machine was tested on Gromit. Shaun the Sheep is shorn so closely that he pops out with a band aid over a cut, despite only being given a "Light Shave".
The evil cyber-dog Preston breaks into 62 West Wallaby Street and steals Wallace's plans. He builds his own larger Knit-O-Matic which also washes and sheers the sheep along with knitting sweaters, however his creation has an added ending stage, the Mutton-O-Matic, which turns the innocent sheep into into dog food.
Wallace states that he has a patent pending on the invention.