A plate-like rotary chipping head has removable chipping knives mounted on its circumferential periphery for chiseling a flat face on a log or other wooden workpiece as the head rotates with a flat workpiece-confronting face thereof in a plane parallel to the direction of relative linear movement between the head and workpiece. Replaceable planing bit inserts are carried on such face for smoothing the flattened surface of the workpiece formed by the chipping knives. The chipping and planing functions are carried out simultaneously as the head rotates into the workpiece. Chips and planer shavings of a quality suitable for use as pulp chips are produced.