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If you want to turn timber into planks, then have the timber in your inventory, press L to bring up the processing window, select chopping, right click the timber and start processing it.
https://www.youtube.com/watch?v=v2RScK-CGkQ
To make ships you need to invest in a shipyard building in one of the major cities (Epheria has the best shipyard). For wagons you need a wagon workshop building.
You then need to get the materials for what you want to produce and put them in the town storage. You then hire an NPC worker (or multiple) and set them to work in your shipyard/workshop.
I would recommend making fishing boats to start with. The demand for those is always high.