1. At the Slat factory Pencil Stock is cut into "Pencil Blocksi" a bit longer than the normal length of a pencil. The small amount of extra length is called "trim allowance" that is important at the pencil factory later.

2. Pencil Blocks are cut into "Pencil Slats" using specially designed circular saws. These saws are very thin in order to reduce the amount of "waste" in the form of "sawdust". Due to the natural grain and defect characteristics of the wood the slats are sorted by width and grade for further processing. Slats without defects are called "full ply". Some slats are cut to smaller widths (called "narrow ply") or shorter lengths (called "memos") in order to eliminate the defects and to produce a variety of useable grades and plies of pencil slats.

3. Pencil Slats are treated with wax and stain in order to provide uniform color and improve the machining and sharpening characteristics of the wood for future processing. The slats pass through a final inspection process and then are packaged and shipped to "Pencil Factories" all over the world.

4. At the Pencil Factory a "Groover machine" cuts grooves into the slats to accept the writing core (or "lead").
 
 
 

Groover and lead layer linked in a single process - Steps 4 to 6

5. Writing cores -- made from a mixture of graphite and clay -- are placed into the grooves. Other pencils may use wax based cores for coloring pencils as well as many other formulations used to make cosmetic pencilsi.

6. A second grooved slat is glued onto the first -- making a "sandwich." This is done with a machine called a "lead layer" where the sandwhiches are then "clamped" to hold them together tightly while the glue dries.

7. Once the glue dries the sandwiches are transfered to equipment called a "Shaper" and are first "trimmed" to assure that the sandwhich is square and that all the pencils will be the proper length, then the sandwich is machined into pencil shapes such as hexagonal, round or triangular.

8. The individual pencils cut from the sandwich are ready for further processing. Any defective pencils such as uncentered leads or chipped wood are discarded at this point.

9. Next each pencil is painted in a machine receiving from 4 to 10 coats of lacquer depending on the desired quality of the finish and the color of lacquer. A recess is cut to accept the ferrule.

After painting some pencils are wrapped with decorative film or foils with fancy designs although most pencils are imprinted with the brand name by stamping the foil into the surface of the pencil.

10. On a "tipping" machine an eraser and a ferrule (the metal ring that holds the eraser to the pencil)are crimped into place on each pencil.
 
 
 

Eraser Tipping Machine

Following tipping pencils are packaged in many different ways for shipment to distributors, wholesalers or direct to retail stores where you buy your pencils.

To see more about how pencils are produced you can watch the Let's Make a Pencil Video.
-----
Raw Materials
http://www.madehow.com/Volume-1/Pencil.html
The most important ingredient in a pencil is the graphite, which most people continue to call lead. Conté's method of combining graphite with clay is still used, and wax or other chemicals are sometimes added as well. Virtually all graphite used today is a manufactured mixture of natural graphite and chemicals.

The wood used to manufacture pencils must be able to withstand repeated sharpening and cut easily without splintering. Most pencils are made from cedar (specifically, California cedar), the choice wood for many years. Cedar has a pleasant odor, does not warp or lose its shape, and is readily available. Some pencils have erasers, which are held on with a ferrule, a metal case that is either glued or held on with metal prongs. The erasers themselves consist of pumice and rubber.
Read more: http://www.madehow.com/Volume-1/Pencil.html#ixzz0V6Euy2S5
---
CalCedar brand Incense-cedar pencil slats represent the premier quality wood casing available to the pencil industry today.
http://www.calcedar.com/products/slats/incense/index.htm
Our customers use these slats to produce their highest quality cosmetic pencils, colored and graded graphite artist pencils and premium quality writing pencils. CalCedar slats are produced using Incense-cedar grown in the California and Oregon mountains under the worlds most stringent forest management practices.

http://en.wikipedia.org/wiki/File:290X2Forestry.JPG

http://en.wikipedia.org/wiki/Cut-to-length_logging