This passage gives us a brief description of the process of creation. Engraving refers to creating space. Carving refers to filling this space with form. Permuting refers to changing energies through rearranging. Weighing refers to the amount of attention or importance that is attached to an object. And finally, transforming refers to creating new objects out of old. In this way, all that was formed and all that will ever be formed is made.
To give a practical example of the above, consider the process I went through in acquiring a house. First, once I had decided to buy a house, I had to make space in my life (engraving) for this process to occur. Next, I had to search for a suitable dwelling, apply for loans, and meet with various agents (carving). Then, after purchasing my house, I arranged my furniture and other belongings in a way which pleased me (permuting). Some favored objects and works of art were then placed in areas where they would be more prominent (weighing), and later I bought items such as bookcases which had to be assembled from component parts (transforming, combining basic parts to form more complicated wholes). In this way, the process of formation was carried out from beginning to end.