The first way to manage local account policies is through the Local Group Policy Editor.
you open it by typing gpedit.msc at the run prompt.
From here you can set Password policy and Account Lockout Policy.
Set these setting as required by double clicking on any setting and changing the setting as required.
The explain tab explains what the setting does.
Another way of doing this is using local security policy type secpol.msc at a prompt to open it.
This displays the same security settings as the local group policy editor and they are edited in much the same way.
Another way is to use security templates.
Open an MMC console and add:
Security Configuration and Analysis and Security Templates.
start with the security template
Make changed to the template as required.
Then go to security configuration and analysis and right click and choose open database.
select the example.inf created previously and click open.
Now either choose Analyse computer now which will tell you where your computer is different to the template or Configure computer now which will configure your computer as per the template.