To enhance the rate of lumber cutting output and save the production cost, a new intelligent manufacture system is developed. Considering the requirements of wood surface defects detection and optimal layout, the overall structure is established. The system has six function modules, there are cutting task module, laser scanning images processing module, defects identify module, optimal layout module, machining plan module and data manage module. According to laser scanning, images processing and defects identify programs help manufacturer to get profile data, acquire profile image, extract features, and identify lumber defects. Optimal layout module gives an intelligent program to decide the maximum number of cutting board pieces and shows operator the visualized layout. Two examples are shown which apply algorithms to obtain the optimal layouts for lumber cutting. The intelligent manufacturing system helps people detect lumber defects, make the optimal machining plan and cutting material online quickly.