The rapid development of laser technology has significantly impacted various industrial sectors, particularly through the use of CNC laser cutting machines. These machines offer distinct advantages and limitations, making them suitable for processing a wide range of materials. This study aims to identify the most effective and efficient settings for a diode-based CNC laser cutting machine, specifically for cutting plywood. An experimental approach was employed, involving the design, creation, and testing of the machine. The research focused on optimizing the focus point and operational settings to achieve precise cuts. The results indicate that the optimal focus point is 12.6 mm, with the best cutting performance achieved at a speed of 500 mm/min, 30% laser power, and 7 passes. The findings suggest that this CNC laser machine is highly efficient for small-scale industries, offering affordability, ease of production, and reduced labor costs by automating multiple machines with a single computer. However, its application is limited in large-scale manufacturing due to constraints related to the Arduino-based control system and the maximum work area size.