The tree gets cut, branches are removed. The tree trunk is sent to a mill. A mill is sort of like a massive horizontal band saw that can move along tracks. The mill either cuts it into quarters or cuts the sides off so it’s a rectangular prism. At that point they can cut planks/poles to an approximate thickness and length. Once that’s done the wood is still pretty rough but can be sold. It can also be cut again on a different saw for a smoother finish and more precise dimensioning.
Edit: a mill can also cut tree trunks into live edge slabs. Doesn’t have to be normal planks of wood.
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