Precedent is generally established by a series of decisions. Sometimes, a single decision can create precedent. For example, a single statutory interpretation by the highest court of a state is generally considered originally part of the statute.
How are precedents created?
Where the court hears a case that involves, for instance, a law and/or a set of facts that have never come before the courts, then the outcome will create an 'original precedent'that future judges will follow.
Who creates precedent?
Precedent is a legal principle, created by a court decision, which provides an example or authority for judges deciding similar issues later. Generally, decisions of higher courts (within a particular system of courts) are mandatory precedents on lower courts within that system.