First, the logs are heated. Usually the logs are soaked
in a bath of hot water. Soaking logs softens up the wood and makes
it easier to peel.
Second, the logs are peeled into thin sheets of veneer.
Imagine peeling the skin off of a potato -- only keep peeling
until the potato is gone!
Third, the veneer is clipped, or cut into sheets the
correct length and width.
Fourth, the sheets of veneer are dried. Warm air is blown
onto the veneer sheets.
Fifth, glue is applied to the veneer. Usually, the veneer
is on a moving belt underneath a box of glue. The box has a slit
in the bottom, so glue falls down in a sheet onto the veneer.
In this way, the veneer sheets are coated with glue!
Finally, the sheets of veneer are layered and pressed
together in a large press machine. The machine not only presses
the veneer layers together very tightly, but it also heats the
glue so it melts and sticks the layers together very well!
When it comes out of the machine, you've got a finished
sheet of plywood!