The theory of knowledge on concepts or CK design theory describes creativity as a design conceptualization independent of other design areas. It represents innovation, creation, and discovery within the design process framework. Engineering design requires creative skills. This article presents a "Quality Function Deployment" method for constructing "Engineering Design and Creativity" courses with appropriate pedagogical elements for second-year engineering students. The course structure has features of creativity, engineering design, and knowledge of prototype development. The results validate that the QFD course design methodology integrates the learning outcome with the assessment methodologies, learning processes, and knowledge elements. The course development methodology, as suggested, minimizes learning deficiencies. Measurement of course and student outcomes (COs and SOs) identifies the shortcomings and pedagogies supporting learning outcomes. For example, the students are deficient initially in defining an appropriate innovative project. Also, at the initial stage, the students face difficulty in team dynamics. To improve and design the course for diverse student backgrounds, we provide special sessions with expert faculty members and counseling to manage conflict of group interest. Data over three semesters are analyzed, and six learning stages are structured with rigorous follow-up to develop an innovative startup project.