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In a family such as ours, where there are six active, imaginative children, it becomes almost second nature to utilize everything that comes to hand, either in a practical way or as a whimsical addition to their make-believe world. Nothing is ever thrown away, because there is nothing that imagination cannot transform.

Operation Santa Claus began with a few pieces of plywood left over from a friend's new rumpus room. My husband, Pete, has the instincts of a squirrel, and accepted them eagerly, carefully storing them away in the basement. He then promptly forgot his prize until that day just after Thanksgiving when I wandered downstairs, my head full of Christmas.

"Look," I said, spotting the plywood panels, "we could make a Santa Claus eight feet high, to put on our roof." The idea of an out-door display was not exactly new. We had often discussed the possibility, but had dismissed the idea as being too expensive. Now that the material for making our own was at hand, I could hardly contain my enthusiasm.

Pete, surveying the standard eight-by-four sheet of plywood which had excited me, remarked practically, "He wouldn't be fat enough."

He was right, of course. A few calculations soon told me that my Santa could be no more than five feet tall if he were to be suitably rotund.

"He's supposed to be an elf, anyway," Pete said, and so we settled for five feet, which was fortunate, because, as we discovered later when we put him on the roof of our house in Springfield, Massachusetts, if he'd been taller he would have dwarfed the chimney.

THE DECORATIONS have now become an important part of our Christmas tradition, a labor of love in which the whole family joins, but at first we hadn't the slightest idea of offering them for sale. It was pure chance which transformed a simple domestic project into a commercial enterprise.

We had completed our first Santa, and were feeling almost maternal about him. Bursting with pride, I stood on the front lawn with the children, and we all shouted directions to my husband on the roof.

To my great joy, the old saw about distance lending enchantment had proved itself again, and all the little mistakes I had secretly hoped nobody would notice seemed to disappear as if by magic. The Santa was a real success, and none of us could rest while there remained more plywood in the basement.

We made, a gracefully curved sleigh with holly trim, and a tiny reindeer to pull it. These we placed on the front lawn. We decided that a display such as this certainly rated spotlighting, and once again my husband shinnied up to the roof.

One spot placed at the corner of the roof lighted Santa adequately. He seemed to come alive. On the lawn we used two spots, concealing them behind the Japanese yews, and the effect was perfect.

We were all standing around congratulating each other, when a large car pulled up in front of the house.

"That's a terrific display you have there," the man said. "Mind telling me where you got it?"

"We made it," the children piped, like a chorus of pouter pigeons.

The man looked at my husband thoughtfully. "I've been looking for something like that," he said. "Do you make them for sale?"

My mouth had dropped open, and before I could close it, my husband had answered, "Why yes, we do." Without batting an eyelash, he went on, in a business-like tone, "If you'd like to leave an order, we can have it ready for you in several days."

We sold him a Santa, two reindeer and a sleigh, for $25. We held a family conference and decided to spend the money for more plywood, thus launching a nice little business which brings in a substantial amount of extra cash at the very time of year when it is most needed.

STARTING AS we did, without experience in any but the simplest carpentry, and without any special artistic training, it was necessary for us to learn by trial and error and to work out our methods as we went along. This, I think, is the very factor which makes a hobby interesting and distinguishes it from real work. We still think of our enterprise as a fascinating if lucrative hobby and have promised ourselves that if the day ever comes when it begins to be work, we'll abandon the whole thing.

This is pretty unlikely, though, because each year brings new ideas, and we now have a large variety of patterns which we continually try to improve. The designing is my job, Pete does the sawing, and we share the painting, though he usually prefers to do the large areas and leave the detail work to me.

We never use the same pattern more than a few times, for we have found that our customers prefer to be a little different from their neighbors. In a community where a rash of post-war building has accounted for row upon row of homes nearly duplicating each other, everyone covets something unique.

My first pattern was a kind of composite. I had assembled a number of old Christmas cards in the hope of finding something suitably simple that I could copy. I soon found, however, that Christmas cards do not have ordinary, garden-variety Santas. They feature Santa Claus waving cheerfully from the cab of a gift-laden freight train, or riding belly-flop downhill on a child's sled, or bent under the weight of a Christmas tree.

It soon became evident that if I wanted a Santa doing none of these things, I would have to draw him. Consequently, I borrowed freely, a leg here, an arm there, a tummy, a belt, a pair of boots. Santa, I discovered, is really a very simple fellow.

I experimented with him in several positions, choosing the one which appeared to offer the fewest cutting problems. An important point to remember if one wishes to try these large display figures is that a compact figure is easier to cut, makes more economical use of the plywood, and is less likely to break.

I made my pattern five inches tall and four inches wide. This I ruled into one-inch squares, so that each square inch would represent one square foot when transferred to the plywood. I then ruled off the panel in one-foot squares on the smooth side, using a soft pencil and being careful not to press hard enough to indent the wood. I copied my pattern, a block at a time, to complete the figure.

When more than one figure is to be made from the same design, a large sheet of tracing paper or tissue is laid over the panel, and the design traced. You then go over the lines on the reverse side with a soft lead pencil, and transfer the pattern by laying it right side up on the plywood panel, securing it with Scotch tape, and retracing the lines.

OUR ORIGINAL Santa, and the first few pieces we made for sale, were painstakingly hewn out with a hand jig saw. Later on we found this method not only time-consuming but a little too much like work. We tried out a stationary jig saw, but it proved awkward to use, since trying to manipulate a five-by-four piece of plywood around a stationary saw is a little like bringing the mountain to Mohammed.

The saw we now use is ideally suited to this type of work. It is a Black and Decker portable jig saw, and looks something like a hand drill. It is light enough to handle easily, and has a very long cord.

This saw was our only major investment, and cost in the neighborhood of $55. With it, we can cut out anything, regardless of size.

While five-foot Santa Claus figures are admittedly a little unwieldy, it is possible to set up a modest assembly line in even a small basement. We pressed everything handy into service, in order to provide as many flat surfaces as possible, but wooden horses, if you have them, are ideal.

Once the figure is cut, the next step is to sandpaper the edges. The plywood which we use (three-eighths inch fir, finished on one side) needs little or no sanding on the face, and if the saw blade is sharp, even the edges will require only the barest minimum. We gave each of our children a piece of sandpaper and told them to go to it, which they did with a vengeance. Time has diminished their enthusiasm somewhat, and they now give the figures only a cosmetic burring, but that first Santa was really an old smoothie.

Occasionally, a piece of plywood will tend to splinter, and if this should happen, it is a good idea to apply masking tape over the outline, and saw through the tape.

THE PAINTING begins with a coat of flat white, applied thin enough so that the lines of the design are faintly visible through it. It is important to remember to paint all the edges, in order to seal them and prevent warping. We allow this to dry overnight, whenever possible, before applying the finish coat.

At first, I used to insist on propping the figures against the wall in order to get the effect as I painted. The effect, as I soon discovered to my chagrin, was that little rivulets of red paint ran down into the white. I now lay the cut-outs flat, and paint them where they are to remain until dry.

I work with a brush 1½ inches wide, although my husband, with more experience, can get good results with a larger brush. The larger the brush, of course, the faster the job. For the detail work on the face, and for the outlining, I use an artist's brush.

We were unable to find a commercially-mixed enamel of a color suitable for the face, so I experimented a little, adding a tiny amount of color at a time until I had a nice brownish-pink. Tubes of oil colors may be had in a number of shades, and your hardware dealer will recommend the right ones if you enlist his aid. Santa's face has to be a rather deep shade, so that it will not appear pale under lights. An outdoor display, which is meant to be seen under lights, is no place to be subtle. I found that my careful blending of color for the cheeks was wasted effort. A spot of red would have done as well.

For the finish coat, we use a good quality enamel. Our customers will want to use their display pieces year after year, storing them in dusty basements between seasons. The figures have to be washable, and capable of withstanding our notorious New England weather.

We apply one color at a time, allowing it to dry before using another. This we find no hardship, since we are usually working on several pieces at a time, but it is here that the novice is most likely to lose patience. Once Santa begins to take shape, it is a great temptation to hurry the job. All I can say is, "Don't do it." If you insist on applying one color before another is dry, your paint is bound to run together where the two colors meet. At best you'll have an untidy job, and probably waste a lot of time touching up.

WE HAVE had success with a number of designs, including reindeer, carol singers, and Santas of various sizes and in different poses, but the five-foot standing Santa remains our most popular item, and I'm pretty sure I know the reason. There is little competition in this size range. The lighted plastic figures offered for sale in stores stand only about two and one-half feet high, too small to be effective as a lawn or roof decoration. Our Santa, being life-size, seems more realistic.

Then too, the big Santa is just right for a starter. Many of our customers have indicated that they intend buying the Santa this year, a sleigh and perhaps one reindeer next, and then a couple of reindeer each year until they have completed a set of eight. We take advance orders whenever possible, but most of our actual work is done just in advance of the Christmas season. I simply cannot work up the proper spirit of enthusiasm for Christmas displays in the middle of summer.

Our reindeer pattern was the product of much research. I tried all sorts until I evolved one which I found satisfactory. He doesn't look much like the reindeer pictured in our encyclopedia, but is a rather fanciful, Disney-type reindeer with a come-hither eye.

Here I'd like to say a word about antlers. In order for these to withstand wind and weather, it is necessary to shorten and thicken them a little. The antlers on our first reindeer were slender and graceful, but they broke off in a strong wind. I found that the same effect can be created by shadowing them in the crotches with black paint. The little reindeer are really the easiest of all our patterns, since there are no inside lines to trace. We give them individuality by using different shades of brown or grey, then adding white touches freehand.

By arranging our patterns carefully, we find that there is little waste, and even the scraps are usable. Any hobbyist with a shred of imagination can find dozens of uses for them. We have found that for a durable product, three-eighths inch plywood is most satisfactory. If you buy in any quantity at all, it should be possible to arrange with your lumber dealer for a nice discount. Although thinner stock can be used, in the larger figures it has a tendency to warp and bend unless braced.

We made simple easel-type stands for our own pieces, but found it best to offer them for sale without stands, since people all had their own ideas about displaying them. Some were nailed to the outside of porch rails, some were mounted on roofs, and one big Santa graced a lady's treasured antique sleigh. An occasional customer will ask my husband to set up the display, for a price, and he is usually glad to oblige.

DECIDING WHAT to charge was admittedly one of our biggest problems. It was simple enough to figure cost, but how does one charge for labor when there are so many fingers in the pie, some of them pretty small and unskilled?

We have found that we can turn out five or six finished pieces in an evening, working three or four hours. This is approximate, since some designs have more detail than others. Our small carol singers, for instance, take longer to make than a large Santa, because there are more colors, and the reindeer, which look complicated, really go very quickly.

We decided to charge $10 for the large Santa, or about double the cost of materials. For the smaller figures we charged proportionately less, averaging about $8 per figure. Our profits, over a period of several weeks, were $25 for each evening spent. Several evenings per week is usually sufficient to take care of our orders, which stem from a small "For Sale" sign placed near our own well-lighted display.

I believe that if we were to make any serious attempt to advertise our product, it would be possible to get more orders than we could comfortably fill, at least with our present methods. Two years ago, we did set up a display at a busy Christmas-tree lot, and soon found ourselves swamped with orders. In order to keep up with that kind of demand, it would have been necessary to resort to mass production methods, and we wouldn't have had a hobby any longer, but a business. We took down the display.

Our biggest single order to date came in our second year of operation, from a local cleaning establishment. This was a de luxe job consisting of a large standing Santa, a sleigh, and eight reindeer complete with harness and bells. For this we received $55 plus a tremendous amount of personal satisfaction. The display is set up in a busy shopping center, where hundreds stop to stare at it each day throughout the Christmas season. The wonder in a little child's face as he points to the lighted roof, and says, "Look, Daddy, it's Santa Claus," is perhaps our most worthwhile remuneration.