I think this it what it means.

Flat filling knits can be shaped by a process called fashioning, in which stitches are added to some rows to increase width, and two or more stitches are knitted as one to decrease width.

http://global.britannica.com/technology/fashioning

Fully fashioned knitting machines are those flat and circular knitting machines that produce custom pre-shaped pieces of a knitted garment. Instead of knitting a whole rectangular sheet of fabric, instructions from a knit pattern on a punch card or computer file guide a fully fashioned knitting machine's needles to add or drop stitches to create custom two-dimensional shapes appropriate to the desired finished garment structure. The pieces emerge from the machine ready to be sewn together.

https://en.wikipedia.org/wiki/Fully_fashioned_knitting

'Fully fashioned' means 'shaped'.

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Note added at 25 mins (2015-07-16 13:32:28 GMT)
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Fully Fashioned Knitwear: Fully fashioning is a process of shaping a knitted structure by increasing or decreasing the number of needles or Wales where the individual pieces are more engineered so that each garment piece is made with no extra fabric and the pieces are basically knitted together at the seams. In this case each piece is shaped using techniques specific to knitwear by using special stitches, making lines of loops shrink and grow depending on where more length is needed and where not. When you knit by hand this is essentially the process that you are doing although in commercial production it would be done by knitting machines. Example- Sweater, Pullover, Cardigan etc.

http://www.clothingstudy.com/introduction-to-knitting-cut-se...

For example, when you make a jumper, you can either cut out the pieces from a length of fabric, or knit each piece separately and then sew them together. The curves at the edges of a sleeve before it is attached to the body of the jumper is an example of fashioning.