Good systems thinking skills are beneficial to engineering projects since, besides being multidisciplinary, they address the needs of large human populations. Therefore, it is paramount that engineers should not only excel in the technical parts but also be good system thinkers and aware of the potential impacts of their activity. In this sense, this paper describes how to implement a project assignment in a system dynamics course for electrical engineering students to teach systemic thinking skills and connect the technical content, industry, and social responsibility. The effects on student performance and retention, and an evaluation of their perceptions of learning gains, are presented. Five weeks are dedicated to the implementation of a project-based project assignment. A formative assessment provides students developmental feedback based on the competencies shown during the creative process. It is complemented by a summative assessment module, which evaluates the adequacy of the finished content, which is developed as an online portfolio. Results indicate that the concepts of systemic thinking and the holistic view of engineering projects were successfully implemented through project assignments. Moreover, students' perceptions of their knowledge gains and comparisons of their performance and retention before and after the intervention indicate a positive influence on the learning process.INDEX TERMS Competence-based assessment, developmental feedback, engineering education, problem-based learning, student engagement, system dynamics.