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Crushed red pepper factories are responsible for processing and packaging the dried and crushed fruits of the Capsicum annuum plant, typically the cayenne pepper variety. These peppers are harvested when they are fully ripe and have developed their signature spicy flavor. The peppers are then dried and ground into flakes or powder, which are then packaged and sold to consumers.

When you slice a bell pepper in half it will look exactly like any spicy chile pepper. There is a placenta covered with seeds, there are veins running along the flesh of the bell pepper. They are pretty much identical with the main exception being the difference in size. Bell peppers have a fruity scent, just like many hot chilies. Both have a crispness to their flesh and also high water content. You can slice, sauté, grill, char, pickle, stuff, or eat bell peppers just like you would any kind of spicy chilies. But when it comes to bell peppers you'll never have to wear gloves to protect your skin from a chili burn, and you'll never have to reach for a drink to calm the fiery heat after eating bell peppers. 

Additionally, some evidence suggests that cayenne may:

Get some high-grade cayenne powder here.

The process of creating crushed red pepper begins with sorting and cleaning the peppers to remove any impurities. The peppers are then dried using a variety of methods, including sun drying or mechanical drying, to reduce their moisture content. Once dried, the peppers are ground into flakes or powder using specialized equipment in the factory.