Formal notations and mathematics are used in several areas to capture the requirements and express the functionalities of the software. This paper focuses on the use of formal methods to model the real world environment in a Malaysian plywood production manufacturing industry. The formal methods are used to describe abstractly the plywood production system in the aspect of its behavior but not precisely the way the system is programmed. Other informal description does the same, but with a formal description we can determine (in theory) whether or not a real system satisfies its description and functionalities. Because of this, precise analysis on the description itself can be performed and it exposes design decisions which otherwise might not be identified until the system prototype is being developed.