This method is a jig that's fits over the table saw blade. It is made with input and output dies that will make 1/"4 - 3/"4 dowel.
Here are my parts for it:

You position the jigs input and output dies on center to the blade. Then you align the top edge of the tallest tooth tangent to the output hole bottom edge on entry side.

Here's the jig in position:

You cut your stock slightly larger than what you want finished.  Let's say you want 1/4" dia dowel. Normally you multiply 1.4142 x .25 (1/4") = 0.354 then round this up to 0.375 (3/8"). You now insert a 3/8" die in the input position (in the photo it shows a 11/16) On the output you insert the 1/4" die. (in the photo it shows a 7/16).
You then chuck up a 3/8" square stock in your drill and run it through.
This is what it looks like when finished.

PRO

This is another accurate way to make dowels. It's fast. You can do long lengths. Great for making alot of dowel. Dowel pretty much always comes out smooth. Storage is easy. 

CON

It's tedious to setup. Much like the chisel method it requires a fair amount of adjusting to get perfect. Once you do it's awesome. Recommended for making alot of dowel all at once.