1) Identify the problem
2) Design a solution or product
3) Implement the design
4) Evaluate the product/solution
First start with making observations, and decide on the problem. You want to generate ideas, look and decide your limits, then create a solution or product. Then, build your product/solution, and put it to the test. Did it work? Identify the pros and cons of your product/solution, and decide what you could do better to improve your design.