S-Cam question

Bendix recommends keeping radial play below 0.010 of an inch by replacing cam bushings as needed. That is up and down play checked with a dial indicator with the cam installed. End play is adjusted with washers at the slack adjuster.
S-Cam Foundation Brakes: Preventive Maintenance | Bendix (cbsparts.ca) Info is same on the Bendix site.
Be careful on installing the cam seals. The one on the brake shoe side has the rubber part/lip facing out, the one at the slack should be facing in. Another way to visualize it is that both seals face the same way if you are looking from the axle end/brake shoes.This is so that when greasing, grease only comes out by the slack and not into the shoes and drum area.
I'm thinking the bushing is going to slightly compress/collapse once installed. Check the play with the cam and bushings installed though it sounds as if you may have done that. What brand parts did you buy?
Bendix has free training videos on their website, you just need to register. There is one specifically for checking and replacing s-cam bushings.

 

Push the bushings in the bore and install the camshaft. The nylon should compress slightly when installed.

I prefer the bronze vs nylon, more durable and resists wear.

 

The bushings have no reliefs in them for the grease to travel. My guess is the bushing design is for grease tolerance to take up the gap between the bushing and the cam.

 

I was thinking the same thing Goodysnap stated. Also there are many different S-cams so you may have the wrong parts. The diameter at the bushing can be 1.25, 1.5, 1.625.... and the S can be different. Difference between 1.5 and 1 5/8 is 1/8. If the cam is centered on the bushing then that would be 1/16 gap on top and bottom. That could be about what you have in the pic.
Hard to tell how much gap/play you have without a measurement or video.

 

Still say the bushing is wrong. As I asked in post #2 what brand parts did you buy?
Your indicator reads in 64ths of an inch or hundreds. 2/64= .03125 or 3 hundreds or 31 thousands past the 1.5 for a total of 1.53125. This is 31 thousands over 1.5 and the cam is .01 or 10 thousands under so that is a total of 41 thousands clearance. The radial (up and down) play spec is .030 max. So with new parts you are out of spec.
Watch the Bendix video. In that video the cam play is .010 and you can see/watch how much movement there is for 10 thousands on the indicator.