Look at http://www.greenval.com/FAQstrips.html for an in depth description of cutting strips with the following common exceptions:

-Most home builders seem to use a table saw with a veneer blade or a 7-1/4" blade to minimize the kerf thickness (waste). A band saw as suggested will even further reduce waste.

-If 1" lumber is used the most commonly used finished size of strips, 3/4" x 1/4", is obtained with simple ripping. Using large lumber shapes and resawing as suggested provides a larger quanity of strips from the same board assuring better final color matching, but is a lot more effort and requires more shop tools.

-The fancy double router set-up is also an overkill for home builders.

Nick's book will give you good direction on all this and more, a worth while investment.