In the diagram (fig.6), the moving frame is that of the space ship. The axis will denote the rear of the space ship (the rear is at at every time ), and a line parallel to the axis through will denote the front of the ship (the front is at at every time ). We then note that , the length of the ship as measured in the ship's frame, is the rest length of the ship.
Now, what we want to do is measure the length of the ship in the stationary frame. How do we do this? We pick some time, say , and measure where the front and back of the spaceship are at those times and take the difference. We know that at the rear of the spaceship is at the origin, so (the rear). Where's the front end? Well, we know that always, so lets see if we can use the Lorentz transformation to find out where this is in the stationary frame.
Next we want to know how long it takes for the ship to pass a given
point as measured by the lab. Well, we have a measurement of how fast
the ship is, and we have a measurement of how long it is (we just found
it), so we can find the time by dividing: