Device used for holding and guiding the tool in drilling, reaming or tapping operations is

Explanation:

Jigs

• A jig is a special device which holds, supports, locates and also guides the cutting tool during the operation
• Jigs are designed to accommodate one or more components at a time
• Jigs are available for drilling or boring

Fixtures

• A fixture is a production tool that locates and holds the work-piece
• It does not guide the cutting tools, but the tools can be positioned before cutting with the help of setting blocks and feeler gauges etc
• Fixtures of different types are made for milling, turning, grinding, welding, bending etc

Gauge

• Components manufactured using mass production methods are checked only to ensure that the sizes are within the prescribed limits.
• The most economical method of checking such components is by using the gauges. 

Important Points 

Purpose of Jigs and Fixture:

• To reduce the cost of production, as their use eliminates the laying out of work ( marking, punching, positioning, alignments etc.) and setting up of tools
• To increase the production
• To assure high accuracy of the parts
• Increase in interchangeability
• Reduce quality control expenses
• To reduce the operator’s labour and skill requirement