How can i set up screen lock with a password programmatically?

Use this code in your App, it works for me:

DevicePolicyManager devicePolicyManager =   
             (DevicePolicyManager) getSystemService(Context.DEVICE_POLICY_SERVICE);
ComponentName demoDeviceAdmin = new ComponentName(this, name of activity);

devicePolicyManager.setPasswordQuality(
             demoDeviceAdmin,DevicePolicyManager.PASSWORD_QUALITY_UNSPECIFIED);
devicePolicyManager.setPasswordMinimumLength(demoDeviceAdmin, 5);

boolean result = devicePolicyManager.resetPassword("123456",
             DevicePolicyManager.RESET_PASSWORD_REQUIRE_ENTRY);

Toast.makeText(this, "button_lock_password_device..."+result, Toast.LENGTH_LONG).show();

Check this . This worked for me.

enter image description here

LockScreenActivity.java

   package com.kns;
import android.app.Activity;
import android.app.ActivityManager;
import android.app.admin.DevicePolicyManager;
import android.content.ComponentName;
import android.content.Context;
import android.content.Intent;
import android.os.Bundle;
import android.util.Log;
import android.view.View;
import android.view.View.OnClickListener;
import android.widget.Button;

public class LockScreenActivity extends Activity implements OnClickListener {
 private Button lock;
 private Button disable;
 private Button enable;
 static final int RESULT_ENABLE = 1;

     DevicePolicyManager deviceManger;
     ActivityManager activityManager;
     ComponentName compName;

    @Override
    public void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);
        setContentView(R.layout.main);

        deviceManger = (DevicePolicyManager)getSystemService(
          Context.DEVICE_POLICY_SERVICE);
        activityManager = (ActivityManager)getSystemService(
          Context.ACTIVITY_SERVICE);
        compName = new ComponentName(this, MyAdmin.class);

        setContentView(R.layout.main);

        lock =(Button)findViewById(R.id.lock);
        lock.setOnClickListener(this);

        disable = (Button)findViewById(R.id.btnDisable);
        enable =(Button)findViewById(R.id.btnEnable);
        disable.setOnClickListener(this);
        enable.setOnClickListener(this);
    }

 @Override
 public void onClick(View v) {

  if(v == lock){
    boolean active = deviceManger.isAdminActive(compName);
             if (active) {
                 deviceManger.lockNow();
             }
  }

  if(v == enable){
   Intent intent = new Intent(DevicePolicyManager
     .ACTION_ADD_DEVICE_ADMIN);
            intent.putExtra(DevicePolicyManager.EXTRA_DEVICE_ADMIN,
                    compName);
            intent.putExtra(DevicePolicyManager.EXTRA_ADD_EXPLANATION,
                    "Additional text explaining why this needs to be added.");
            startActivityForResult(intent, RESULT_ENABLE);
  }

  if(v == disable){
     deviceManger.removeActiveAdmin(compName);
              updateButtonStates();
  }  
 }

 private void updateButtonStates() {

        boolean active = deviceManger.isAdminActive(compName);
        if (active) {
            enable.setEnabled(false);
            disable.setEnabled(true);

        } else {
            enable.setEnabled(true);
            disable.setEnabled(false);
        }    
 }

  protected void onActivityResult(int requestCode, int resultCode, Intent data) {
         switch (requestCode) {
             case RESULT_ENABLE:
                 if (resultCode == Activity.RESULT_OK) {
                     Log.i("DeviceAdminSample", "Admin enabled!");
                 } else {
                     Log.i("DeviceAdminSample", "Admin enable FAILED!");
                 }
                 return;
         }
         super.onActivityResult(requestCode, resultCode, data);
     }
}

MyAdmin.java

    package com.kns;
import android.app.admin.DeviceAdminReceiver;
import android.content.Context;
import android.content.Intent;
import android.content.SharedPreferences;
import android.widget.Toast;

public class MyAdmin extends DeviceAdminReceiver{


    static SharedPreferences getSamplePreferences(Context context) {
        return context.getSharedPreferences(
          DeviceAdminReceiver.class.getName(), 0);
    }

    static String PREF_PASSWORD_QUALITY = "password_quality";
    static String PREF_PASSWORD_LENGTH = "password_length";
    static String PREF_MAX_FAILED_PW = "max_failed_pw";

    void showToast(Context context, CharSequence msg) {
        Toast.makeText(context, msg, Toast.LENGTH_SHORT).show();
    }

    @Override
    public void onEnabled(Context context, Intent intent) {
        showToast(context, "Sample Device Admin: enabled");
    }

    @Override
    public CharSequence onDisableRequested(Context context, Intent intent) {
        return "This is an optional message to warn the user about disabling.";
    }

    @Override
    public void onDisabled(Context context, Intent intent) {
        showToast(context, "Sample Device Admin: disabled");
    }

    @Override
    public void onPasswordChanged(Context context, Intent intent) {
        showToast(context, "Sample Device Admin: pw changed");
    }

    @Override
    public void onPasswordFailed(Context context, Intent intent) {
        showToast(context, "Sample Device Admin: pw failed");
    }

    @Override
    public void onPasswordSucceeded(Context context, Intent intent) {
        showToast(context, "Sample Device Admin: pw succeeded");
    } 

} 

main.xml

    <textview android:layout_width="fill_parent" android:layout_height="wrap_content" android:text="To Lock Screen First Enable it.." android:textsize="15sp"></textview>

    <button android:id="@+id/lock" android:layout_width="match_parent" android:layout_height="wrap_content" android:text="Lock The Phone"></button>

    <button android:id="@+id/btnEnable" android:layout_width="wrap_content" android:layout_height="wrap_content" android:text="Enable"></button>

    <button android:id="@+id/btnDisable" android:layout_width="wrap_content" android:layout_height="wrap_content" android:text="Disable"></button></linearlayout>

policies.xml

<?xml version="1.0" encoding="utf-8"?>
<device-admin xmlns:android="http://schemas.android.com/apk/res/android">
    <uses-policies>
        <limit-password>
        <watch-login>
        <reset-password>
        <force-lock>
        <wipe-data>
    </wipe-data></force-lock></reset-password></watch-login></limit-password></uses-policies>
</device-admin>

You can have this policies.xml either in layout or in xml folder. Only thing you need to take care is metadata tag in Androidmanifest file.

 <?xml version="1.0" encoding="utf-8"?>
    <manifest xmlns:android="http://schemas.android.com/apk/res/android" package="com.kns" android:versioncode="1" android:versionname="1.0">
        <uses-sdk android:minsdkversion="8">

        <application android:icon="@drawable/icon" android:label="@string/app_name">
            <activity android:name=".LockScreenActivity" android:label="@string/app_name">
                <intent-filter>
                    <action android:name="android.intent.action.MAIN">
                    <category android:name="android.intent.category.LAUNCHER">
                </category></action></intent-filter>
            </activity>
 <receiver android:name=".MyAdmin" android:permission="android.permission.BIND_DEVICE_ADMIN">
     <meta-data android:name="android.app.device_admin" android:resource="@layout/policies">
                    <intent-filter>
         <action android:name="android.app.action.DEVICE_ADMIN_ENABLED">
                        </action></intent-filter>
                    </meta-data></receiver>
 </application>
        </uses-sdk></manifest>

Before Lock the screen you need to Enable Admin Permission

enter image description here

Then you will get this..

enter image description here

After Enable you will lock screen..like this

enter image description here