You allocate the dataset name same as any other:
//ddname DD DSN=....DISP=...etc
Do not allocate it within your program.
The TIME parameter has no connection with your problem - Dick is just saying that you should not use it as it may be meaningless within your organisation and, in my opinion, it is better on the jobcard rather than being hidden away on a step.
The problem I have is that people can explain things quickly but I can only comprehend slowly.