I have been asked how to make a twisted cord. This is one method using a tool for the purpose. You can also do the same thing using a drill with a hook instead of a drill bit. Alternatively you can twist by hand, this just takes a while longer.
I use a tool by Lacis called a Cord Maker and Fringe Twister that allows me to use several colours. This available from Nordic Needle as well as many other suppliers.