Heres a super easy basic break down of the crafting system.
When you achieve an S grade on a champion you will receive a chest, you can look at your profile and where you see win of the day bonus, or aram re rolls, you will also see chests, if you hover over where it says "next chest available in" it will tell you when you can receive your next chest, usually a few days apart i think. You can only get 5 chests a month. Also if anyone else in your group gets an S, you will receive a chest regardless of your personal grade. Also to keep track of what champs u have earned a chest on, they get a gold border around them when you look at your champs you own, you will see that champ with the gold border and know u already got a chest on that champ.
Now to keys, the keys are totally random, doesn't matter the grade you get, it takes 3 key fragments to make 1 full key to open a chest. The drop rate of the fragments is totally random, meaning you could play 5 matches, no matter the grade you get, you could or could not receive a single fragment.
Now onto the essences and the crafting part itself. Champion shard disenchants turn into blue essence, and skins and ward shards turn into the orange essence.
Blue is used to permanently turn a champion shard into the real champion, orange is used to permanently turn the skin shard into the permanent skin. If you click on either shards, it will give you a list of options you can do, there is re-roll, disenchant, activate, and upgrade.
Don't bother with the re-roll, you need 3 of the same skin shard or champ shards to re-roll and it will give you a random permanent skin or champ depending on what you re-rolled. Disenchant if you don't want the skin shard or champ shard, to use for another one. Don't bother using activate, it's a rental for 7 days and uses the skin shard up. Lastly you have upgrade which uses blue essence for champ upgrades or orange for skin upgrades to the permanent thing.
That's the super basic easy explanation, someone correct me if i was wrong on something, i rushed it lmao.