You can pile it up, or you can build a container. Yes, use the shavings, they break down too.
If you take some wire mesh you can make a circle with it to hold the pile, the holes in the mesh should be small enough to not just let it all fall out. Some people will take a large trash can, and cut the bottom off, and use that to hold their compost. That way, when you want to get at your compost you can pull the can off and the compost will fall out into a pile.
Ideally, after you pile it up and it sits a while, (month or so) you should turn it by digging it around with a shovel. This helps the pile break down evenly. When you turn it, you can see how well it is breaking down. Bigger piles break down faster, because they generate more heat inside.
If the weather is hot and dry, hit it with the hose. Stuff composts best when it is damp.
You can also add kitchen scraps to the pile as well. My hens get most of my scraps, but things like onion skins and tea bags and such I put in the pile.
Compost will happen whenever you pile up organic matter. How fast it happens depends on the size of the pile, how often you turn it, what is in the pile, and how moist it is. But you can always just pile it up and forget about it for a while, that works too.