As with most engineering schools, the Department of Mechanical and Materials Engineering at Queen’s University in Kingston, has a final year capstone design course. Since 1998, capstone projects have involved teams of students working on industry-based problems. This paper summarizes the experience of current and past course coordinators with the university-industry component, comments on how the Conceiv Design Implement Operate (CDIO) elements of the design cycle are handled, and discusses the implications of the two term structure of the course. The first term course MECH 460 Team Project – Conceive and Design is mandatory for all students. The second term course MECH 462 Team Project – Implement and Operate is optional.