Use the same techniques used to distress jeans.
The following are excerpts from WikiHow articles on how to rip and distress jeans.
1) Gather your jean jacket, coarse sandpaper, pumice stone, wood file, grater, utility knife, scissors and a small, flat block of wood.
2) Draw a cutting line or pattern on the jacket with a pencil.
3) Place a block of wood inside the sleeve beneath the area.
4) Rub and scrape the fabric in several different directions. Use sandpaper, a pumice stone, wood file and grater. These will fray the fabric. Rub gently for mild distress; rub longer and more vigorously to create more visible distress (such as holes and tears).
5) Loosen fibers by scraping with the blade of a utility knife.
6) Using the scissors, cut a hole through the loosened fibers.
Retain all of the loose fibers.
Read the full WikiHow articles by clicking the links below.
How to Rip Your Own Jeans - wikiHow
Or
How to Make Distressed Jeans: 8 steps (with video) - wikiHow