Build a bin
Using pressure treated lumber or even wire fencing formed into a cylinder shape.  The bin should be of eqaul height, width and depth--typically  three to four feet. 

or

Buy a bin
You can buy a plastic version of the square style, or you can buy a rotating composter which simplifies the whole process since you don't have to turn the compost manually with your pitchfork. 

Location
You can locate your bin in either sun or shade, but sunlight will speed up the composting process.  

Drainage
is equally important.  Poor drainage will result in overly west heaps that smell bad and decompose slowly.  Building your bin on top of a screen set on a pallet will improve drainage.  

Add Compost
"Equal Parts Green and Brown help to break the compost down" 

Alternate layers of brown and green.  The correct balance of brown and green material helps with the aeration and moisture content of the compost pile.   

Brown material
(Carbon-rich)  would be dry, dead plant material such as:

Pine needles
Wood chips
Straw

Twigs
Autumn leaves

Bark

Cardboard

Paper

Sawdust

Cornstalks and cobs

Newspaper

Green Material
(High in Nitrogen) would be garden plant materials such as:

Grass clippings

Fruit 

Uncooked kitchen vegetable trimmings

Seaweed and kelp

Coffee grounds

Tea bags

Crushed egg shells.  The the greens are usually high in nitrogen.  You want to    produce a balanced combination of greens and browns which when combined in optimal environmental conditions, produces a high-quality compost.

A word of caution  
Never compost:

Animal or dairy products including meat, fish, bones, eggs, or fats.

Diseased or  insect-infested plants

Pet or human waste

Any plants treated with herbicides including grass clippings.

Hardy weeds or plants that have gone to seed

Cooked vegetables

Charcoal ashes

Water
each layer as you go.  The compost bin should be kept reasonably moist to encourage proper decomposition.  Too wet or too dry and the process will be slowed down.  

Let Rest
for one or two weeks.

Stir and cover   
After letting the compost stew for a week or so, mix together with a pitchfork, cover with a tarp to retain heat and moistture and let stew. In general, the warmer the compost heap the faster the composting process.  The heat is generated by the microbes--a larger compost pile tends to be warmer.  

Aerate
Air circulation is needed throughout compost pile to help speed up the decomposition process.  You can poke holes in the pile with a rake handle or use a chimney of PVC pipe with holes drilled in it.  Commercial compost aerators are also available.  Turn the compost when it starts to cool.  

 
Compost could be ready
to use as quickly as three months or up to two years depending on the conditions and the  amount of attention you give it--frequent turnings, using proper ingredients, maintaining the correct moisture level, etc.  It can take up to two years if the conditions are less than ideal.   

The finished compost will be rich, dark and crumbly and will be well worth the effort when you see the payoff in your garden.

      
 

Garden Worm Compost

Vermicomosting turns organic wastes into high-quality compost using earthworms.  Many proponents of vermicomposting believe that this is actually the best way to compost your kitchen scraps.   Continually adding small amounts of wet kitchen scraps to an established compost heap can disrupt the decomposition process preventing the compost from ever really being "done".  This is not an issue with vermicomposting.

Vermicomosting is also earth friendly--using a wrom box can reduce your garbage by up to one third if you use it for kitchen scraps as well as newspapers and cardboard.

You can make your own bin or purchase ready made bins online.  It is also possible to keep a small bin right on  your kitchen counter.  They do not emit odors or produce any noise.

Worm Compost as Natural Pest Control

New studies have shown that using worm compost in your garden can cut down on damage from chewing insects like caterpillars, mealy bugs and aphids.  Greenhouse trials were recently conducted at Ohio State University in which 40, 20 and zero percent vermicompost were added to potting soil.  The vegetables in the soil were then exposed to common garden pests.  The vermicompost soil of both 40 and 20 percent showed significant reduction in the number of aphids, mealy bugs, and sucking and chewing insects.  Scientists are not sure why the vermicompost helped suppress pests in the garden, but speculated that it might contain essential nutrients that could make the plants more stress resistant, less attractive to pests, or a combination of the two.