The HPVA defines hardwood plywood as "a panel composed of an assembly of layers or plies of veneer or veneers in combination with lumber core, particle board core, MDF core, hardboard core, or of a special core material joined with an adhesive. Except for special constructions, the grain of alternate plies is at right angles and the face veneer is a hardwood species."

The grading of these panels has always been widely misunderstood. The hardest part of the plywood grading rules to get past is that all species are not gradrd to the same standard. The HPVA groups species with simillar characteristics together, for example:

Birch, Ash, Maple and Poplar are graded on one chart while Red Oak and White Oak are graded on another.

One of the first things to understand is the way face veneers are cut from a log. The images below (from hpva.org) show the most common methods of cutting face veneer

Rotary cut veneer. Gives an uneven grain pattern but a wide sheet. Often it can be cut wide enough to yield a full width, one piece face veneer.

Plain slice (flat cut). This cut gived a cathedral look as the inner most growth rings are cut. It produces narrow pieces of veneer but with very straight grain.

Half Round Slicing. Veneer is cut on an arc roughly parallel to the center of the log to achive the look of flat cut veneer.

Quarter Slicing. Achives a straight grain by slicing perendicular to the annual growth rings

Rift Cut. Oak has medullary ray cells which radiate from the center of the log like the curved spokes of a wheel. This straight grain cut is at a slight angle to the medullary rays in oak to minimize ray fleck (flake).

Lengthwise Slicing. A board of flat sawn lumber is passed flat over a stationary knife. As it passes, a sheet of veneer is sliced from the bottom of the board. This produces a variegated figure.