An emerging design technology known as knowledge-based engineering (KBE) is the next step beyond CAD for product representation. KBE allows a true generative virtual prototype to be developed that represents both the geometric and the non-geometric characteristics of a product. Both an undergraduate and graduate level design course based on this technology is described. A new version of the design process is presented for the development of a virtual prototype. Examples of products (systems) that were modeled include a hand held vacuum and a parametric human which are presented and described.