I recommend getting the bone from someone who owns dogs that chew on them (finding them in their yard) or talking to a local butcher. Personally, I get an infinite bone supply from my neighbor's woods. Her dogs consume an enormous amount of treats, and I find the leftover bones buried amongst the conifer needles.
These little bone carvings make great necklaces, charms, and trinkets. If you tea-dye yours like I did here, they will have an natural aged quality that is irresistible to surfers, beach bums, and tourists :D
I have a blog, here!
Step 1: Cutting Down The Bone
I used a band saw. The blade is 3/8" wide (6 teeth/inch), and I recommend the same for you.
WEAR SAFETY GLASSES!
Step 2: Plan The Design
Step 3: Cut Out The Design
The picture is a bit blurry because my band saw is not on level ground...it rattles :P
Step 4: Sanding
If you plan to do this a lot, you'll need to get a respirator. Bone dust has some serious long term respiratory effects if you are exposed to it a lot.