I used to set up Ford 8.8s that way. There is also a tool I believe that you install to take a measurement to get the right size shim. But I am referring to 8.8 Ford I have the most experience with them. Basically set pinion depth then ajust backlash...
Here is a link to some Mopar tools at Summit.
Pinion Depth Gauges - Natural Pinion Depth Gauge Finish - Chrysler 8.75 in. Axle Model - Free Shipping on Orders Over $99 at Summit Racing