The Dynasert, introduced by the United Shoe Machine Corporation in the mid-1950s, was an automatic insertion machine used for assembling electronic components (resistors, diodes, capacitors, etc.) onto printed circuit boards—then called printed wiring boards. The components were packaged on paper strips in those large rolls mounted above the machines. The machine took the component out of the paper; cut the wire 'legs' to length; bent them to the proper fit; and inserted the component into the proper holes on the board.

In his 1959 book "Industrial Administration," Stanley Vance cited an April 27, 1957 Business Week article and wrote:

Delco Radio Division of General Motors Corporation uses a 46-station Dynasert machine to perform 46 successive assembly tasks. Mechanical contrivances have replaced workers in feeding the materials, making the necessary connections on the printed circuit boards, and performing all other operations. However, since less than 50 out of the 193 assembly steps required in the making of a car radio can presently be mechanized, there is still considerable hand fitting at certain phases of the operation outside the automated 46 sequences performed on the Dynasert machine.

The picture above shows a 20-station Dynasert machine.

Dynasert's main competitors were The General Electric Automatic Assembly System, and The Autofab, made by The Mechanical Division of General Mills, Inc.

I didn't find Dynasert in a trademark search, and the patent result was for something that seemed to test electrical components.
This looks like it is making some type of ribbon or sewing trimming.
The way it's gathered, it looks to be fabric rather than paper.
From the clothes, I'd guess early 60s.
All pure speculation, alas.

Sorry, guess I blew that one, but it did LOOK like ribbon.