Attach Shaft to base using Shaft Attachment Bolt.  Shaft goes against flat side of base. Bolt head fits into recess on bottom of base.  Attach Anvil to tip of Indicator
Attach Indicator to Upper Collar using Indicator Mounting Screw. Anvil need to be aligned parallel with Base enabling Anvil to set flat on Base when Indicator is at 0. If you cannot do this dissassemble fixture and check for burrs or errors in assembly. In some cases we rotate the shaft ¼ turn and install in a different position. Reassemble and adjust carefully.
Loosen Bezel Lock and adjust Bezel until 0 is at top.
( 12 on a clock )
Tighten Lower Lock
With Upper Lock loose use Fine Adjustment to raise or lower upper collar until Indicator reads 0 on inner and outer dial.
This usually is a trial and error type of thing because when you tighten Upper Lock, it sometimes displaces Upper Collar making the Indicator read different.
Once adjusted just raise Anvil off Base using Lift Knob and place part to be measured under Anvil. Gently lower Anvil until it rest on part.
Take you measurment and you have your size.

First time user of dial indicators.
Big dial reads in .001 inches.
Small dial reads in .100 inches.
Look at both of them and add them together.
Similar to odometer on your car.
Example.     Big dial 50     .050
                     Small dial 2  .200
                                         .250 = ¼ inch
Fixture was designed to measure drill bits but can be used for most anything.

We recommend installing near storage location of drill bits or what ever you wish to measure. If left in same location its easy to check size befor using and then before putting back into correct storage location.
Try to find a place easily accesable and close to eye level.. Experience has tought us that this is a very friendly fixture when installed in a good location. 
Place your favorite wall chart with drill bit sizes within sight and you are ready.   Once installed you can identify sizes in seconds. 
No need to hunt for calipers or mess with numerous drill index to identify sizes of drill bits.