Abstract: A cap-lining machine is constructed with a minimal number of mechanical parts and is provided with a modular and quickly replaceable liner punch and insert station, which readily may be changed to accommodate caps of different diameters with a minimum amount of down time. In addition, sensing switches are employed with an electronic control system in lieu of conventional mechanical connections to prevent the machine from moving on to the next step in its operation unless all previous steps of operation have been completed in proper sequence. Operation interruption is accomplished in a jam-proof manner.