A part holding assembly, an assembly system and a method of positioning a first part are disclosed. The part holding assembly is coupleable to a support structure. The part holding assembly includes a base adapted to be coupled to the support structure. The part holding assembly also includes a first pin extending outwardly away from the base to a distal end that is spaced from the base. The base is movable to position the first pin relative to a first part and to insert the distal end of the first pin through a first hole of the first part to locate the first part. The part holding assembly further includes a first magnet adjacent to the first pin. The first magnet is selectively magnetized to selectively secure the position of the first part relative to the base.