This paper describes the continuous quality improvement (CQI) process plan that was developed and implemented by the Department of Mechanical Engineering (DME), Universiti Tenaga Nasional (UNITEN), Malaysia for its Bachelor of Mechanical Engineering Programme. The plan is part of the Outcome-Based Education (OBE) system that is required by the Engineering Accreditation Council (EAC) of Malaysia. DME has implemented OBE approach in the programme for the past 3 years. Throughout the implementation process, the Department has developed ongoing assessment and CQI plan to measure the outcomes and improve the teaching and learning process. This plan, which was first implemented at the end of 2006, has generally shown a positive trend in the teaching and learning process in the programme. This paper also discusses the assessment tools that are used in the continuous quality improvement (CQI) plan. Assessment is one of the important parts in the CQI plan. Direct and indirect measurement methods are used to gather the data which are to be analysed to measure the outcome attainment. The attainment results are used to identify the areas that need to be improved. The assessment plan has been continuously improved to be more effective in measuring the achievement of the OBE implementation in the department.