Process X's video of pencils mass-produced at a Japanese factory is so perfectly satisfying I suspected the audio was foleyed, until they got to the part of the factory where earmuffs are clearly required and it isn't very satisfying at all. [via] And they're making them out of cedar, too: turn on subtitles.
Process of mass producing pencils. A factory specializing in pencils in Japan made by craftsmen
And, previously, here's how Faber-Castell does it.