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Crafted Items
Crafted Items are items such as tools, weapons, and armors made by the player through the use of the Crafting and Smithing skills.

Quality
Similar to Loot Items, they also come in 6 increasingly better forms of quality:
Each higher level of quality will add a new attribute to the item. Attributes are predetermined based on the tier of item. For example, every "Great" Iron Pickaxe will have the same stats: the base attribute that comes with the "normal" quality, plus 2 additional attributes.
Your chances to craft higher quality items will increase with skill level, equipment, buffs, and the use of fine materials.