Hi,
the Service Meter has been supplied as standard on Cat equipment for a long time before your D7E.
It should be located on the lower side face of the Injection Pump Governor Housing, on the front right side of the engine down about level with the top of the chassis side rails from memory.
They are reasonably reliable as long as they stay water/dust tight.
Ideally they need periodic dismantling, cleaning and lubricating for reliability--rarely done in my experience as it is not in the Service Schedule.
They are often changed when a major engine rebuild is done or with some messing about the counters could be reset.
The SM is geared to read approx. 1 service hour when the engine operates for one hour at Full Load engine speed--RPM.
Cheers,
Eddie B.