To create something is to produce something for the first time time. To make something is to produce something that has been produced before.
'Create' is the most appropriate word for producing a handiwork, if the piece that is being produced is an original 'something' (e.g. a carving, a piece of jewellery). So for example: the artist created some beautiful carvings/pieces of jewellery.
But, you can also 'make' a piece of handiwork if it is not an original piece, for example if you are following a specific design.
The word 'create' can also be used for intangible 'productions':
'The boss was so demanding and unappreciative that he created a negative atmosphere in the office.'
'The person who was conducting the marriage ceremony created a joyful atmosphere by using positive, uplifting words and smiling at everyone.'
I hope this helps, please feel free to contact me if you need further explanation or examples.