Adjust the dials on the lock so that "000" shows inside the windows. Then pull the shackle straight up and turn it 90-degrees counterclockwise.
Press the shackle down onto the body of the lock, as far as you can. You can be quite firm with this. While the shackle is pushed down, turn the shackle a further 90-degrees and hold it there.
Set the dials to your desired combination, for example a birth date. Then move the shackle back 90-degrees -- raise the shackle and move it further back -- into its closed position.
Twist the combination dials and test that the lock is closed by pulling on the shackle. Then set the dials to the combination that you just set and make sure you can open it.