When engineering students work in a problem-based learning environment they learn how to act as problem solvers by solving real life problems through the development of technological solutions. Problem solving is at the core of engineering practice and problem-based learning models have therefore been emphasised as powerful for engineering education communities to foster employability. However, the approach to problem-based learning differs considerably between different engineering institutions and one of the variables is the extent to which students develop their ability not only to solve pre-defined problems but also to identify, analyse and formulate problems themselves. This is important if the engineers of tomorrow are to work in a more holistic system perspective, as stressed by accreditation bodies, engineering education researchers as well as engineering academies. This conceptual paper presents a five-step model for students to identify, analyse and formulate a problem to be addressed from an engineering perspective. The model is the result of an iterative process, where theoretical as well as empirical inputs have pointed to creating a conceptual model for problem design for both students and staff, which is simple and concrete in its conceptual framing and walks the students through their first experience as problem designers in a sequential step-wise systemic manner. This model has gradually been appropriated to engineering communities by drawing on experience from students and staff in the problem-based learning environment at Aalborg University. Based on this, a five-step model for project design is presented initiating students to (1) relate to the theme, (2) map the problem field, (3) narrow down the problem, (4) analyse the problem in context and (5) formulate the problem. Experience shows that students can manage this step-wise model, but still there is a need to scaffold students during the process of developing problem design skills.