Best way to produce smoke

I'm confused about the best way to produce smoke. I have a bunch or different flavour wood chips. Should I soak the chips and put them direct on the coals? Or use a smoker box? If I use a smoker box should I soak the chips first?

You can soak the chips if you're throwing them straight onto the coals (I hardly bother these days), if you're using a smoker box, the chips won't need smoking.

I tend to wrap a good handfull of chips in tin foil and poke four or five holes in it then toss on the coals. I don't bother soaking them.

I agree with Dr. KY. Making a pouch is the way to go.

I have also used a 2'' section of steel pipe with reducers on the end and left open.