As you get items you can visit the blacksmith/forge and salvage parts from them to make more gear for your character. The higher your level of Blacksmithing, the higher the item quality you can salvage - white, green, blue, purple will each offer better components with which to make new items. You will need to be at a minimum of level 16 and a level 10 in Blacksmithing before you can get this achievement. You'll need to have one of each component types, including gems, available for whichever type of item you're trying to make. Go through your list once you reach level 10 in Blacksmithing and you should have enough for something. If not, keep playing and visit some vendors to fill up your component bag a bit and try again.