Abstract: A method for calibrating the "Z" origin position of a pick and place machine including a planar element sized and configured to permit the planar element to be removably mounted on the assembly table of the machine. The "Z" origin calibration jig also includes a vertical displacement measurement device for measuring the relative vertical displacement of a part placement nozzle with relationship to a fixed elevation, typically the upper surface of the panel. In one embodiment of the invention, the vertical displacement measurement device includes a dial gauge attached to the planar element. One embodiment of the "Z" origin calibration jig includes a the planar element having a first aperture formed therein for accommodating the location of the dial portion of the dial gauge therethrough. In this embodiment the dial gauge is removably mountable within the first aperture with the dial portion of the gauge viewable at the top surface of the planar element.