A method for determining a position and a heading of a work machine having a work implement controllably attached. The method includes the steps of positioning the work machine at a desired work location, determining an initial position and heading of the work machine in site coordinates, determining a position of the work implement relative to the work machine, positioning the work implement at a desired reference point, determining the position of the work implement at the reference point in site coordinates, periodically positioning the work implement at the reference point during work operations, and determining a new position and heading of the work machine as a function of the position of the work implement relative to the work machine.