The human male produces sperm in the testes, located in an outpocketing of the abdominal wall called the scrotum. Ducts, principally the vas deferens, carry sperm to the outside. Glands along the path secrete a liquid (semen) that carries and provides nutrients for the sperm.
The testes produce both sperm and male hormones (such as testosterone). These hormones regulate secondary sexual characteristics of the male, such as facial and pubic hair and deepening voice changes. Increased testosterone production during puberty induces these changes to cause maturation.
This animation (Audio - Important) describes the male reproductive system.
This animation (Audio - Important) describes the process of sperm formation.