This achievement is actually quite simple provided you have the skill needed to accomplish it. You will need 7 ranks in the Blacksmithing skill. Once you do simply ensure you have 4 crafting components (personally by Level 14 I was able to craft most items successfully with my stock of parts) and 1 gem for socketing into the item you are creating. Remember gems need to be of a certain type (weapon, armor or utility) so plan ahead what you are going to make to ensure you have the appropriate gem. Then simply enter the forge, select the item you wish to create and as soon as the naming screen appears the achievement will unlock.
A helpful tip - if, like myself, you did not have all the ranks you needed in Blacksmithing, a great tip is to make a separate game save, then head to a Fateweaver and reset your stats. You can then pump as much as you want into Blacksmithing (I maxed that track and put the rest into Sagrcrafting to make Gems) and you can nab this achievement much earlier in the game if you would like to.