Think of it like a panel cabinet door. The cutting tools and process can be the same. Or you can purchase panel moulding from your local trim supply and use 3/4 ply as the stiles and rails and 1/4 ply as the panel and trim out with the moulding. No real process, other then keeping the openings as symmetrical as possible. Base and shoe moulding on the floor and crown on the cieling. You may do the cieling as trayed.
Wall treatments can be done in a variety of ways from rail and stile panels, to mock up panels using moulding. The overall area is usually divided up in segments to compliment the size of the wall. This can be applied to wainscoting also.
In this room all the exposed walls were covered either with cabinetry or paneling.
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