The picture at right illustrates the steps involved in the manufacture of a wood pencil.

 

It starts with a block of wood (most pencils today are made from Basswood) (1) which is then cut into slats (2).  The slats are then stained (3) and grooves are cut into one surface (4).  Prepared leads are placed into the grooves (5) and a second slat is placed on top and bonded with the first (6).  This 'pencil sandwich' is then passed through a milling process (7) to separate the individual pencils (8).  The pencil is painted and finished (9 & 10), a ferrule crimped onto the end (11), and finally, an eraser is crimped into the ferrule (12).