To work in a confined work space, an operator 14 holds a portable or handheld assembly tool 16, which in the exemplary embodiment ofFIGS. 1 and 2 is configured as a portable and rechargeable electric torque wrench, although other assembly devices such as welding torches, impact drivers, rivet guns, glue guns, etc., can be used within the scope of the invention, as will be understood by those of ordinary skill in the art. When configured as a torque wrench as shown inFIG. 1 , the tool 16 has a rotatable shaft 18 that is capable of delivering a predetermined torque (arrows T) to the fastener 32 when a force is exerted on a trigger 47 (seeFIG. 2 ) by the operator 14, such as by activating an electric motor (not shown) inside of the tool 16. The tool 16 has a local positioning module (LPM) 48 adapted for collecting a set of raw data 11, which is ultimately used to precisely calculate or otherwise determine the position of the fastener 32 in its XYZ inertial frame of reference during its installation, as will be discussed below with reference toFIG. 2 .