University graduates in the areas of engineering, design and business are being employed by companies increasingly pressured by global competition, rapid changes in technology, changes to organisational structures and procedures and if these graduates are to succeed, the courses from which they graduate must prepare them appropriately.

Since the mid 1990s, engineering, marketing, accounting and industrial design students at Monash University have participated in project based learning teams, acting as consultants to selected companies on new product development projects. A continuous improvement process has been established to ensure that course objectives are met, courses adapt to reflect changing employer requirements and student motivation and performance are enhanced.

The purpose of this paper is to examine the structuring of the project and the use of student assessment with the additional use as feedback for continuous subject improvement. The paper will discuss the use of reflective reports completed by students at the end of the project, feedback from the companies for whom they consult, research findings from independent observers and information provided by graduates once in the workforce. As a result, changes in facilitator guidance, company and project selection and team and peer assessment have been and continue to be improved.