A dunnage conversion machine provides an improved electronic monitoring and control system for detecting and resolving many jamming conditions before they require significant operator intervention. The machine includes a conversion assembly with a feeding device that feeds the sheet stock material through the machine, and a sensing device downstream of the feeding device to monitor movement of the stock material downstream of the feeding device and to output a corresponding signal. A controller controls operation of the feeding device in response to the signal from the sensing device. The controller uses the signal to detect a potential jam condition and controls the feeding device to prevent or minimize the occurrence or severity of the jam condition, thereby minimizing the amount and degree of required operator intervention.