Development of anisotropy, induced during processes of compaction of metal powders and plastic deformation of sintered metals is considered. A mechanical model, taking into account the induced anisotropy is proposed. The application of the finite element (FE) method for the proposed model is given and a FE code is created. Numerical simulation of compaction and of forging processes are given, showing the influence of the induced anisotropy on the relative density distribution and on the form of the end product.