I think you got it, the idea is that during the initial two weeks of pad training your puppy has to learn that it is okay to go on the pad. The more time he spends in there the more chance for him to get it right and receive praise from you which is an important part of training. If he is not participating in activity with you he should be in the crate. Once he understands that it is okay to eliminate on the pad then he can spend more time outside of the crate. Take a look at the video "Training with the PupPeePooPalace."