If the project file and self extractor meant for target machine needs to be password protected then this tool has to be used.
To set password, load the files either for new project and save it and the 'Set Password [ALT+P]' button will be enabled. On clicking the button the following password dialog will open.

 

Size of the password length 30 characters maximum
Enter the password twice to confirm and save it with 'OK' button.
As soon as the password is created a checkbox (enabled) will be displayed as below at the bottom left side of Smart InstallBuilder (8.2) saying 'Password Protected'
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'Clear Password [ALT+P]'