Module 8: The Capstone Final Project

1. Module Introduction: The Capstone Final Project

Overview

This is the final module of the guide. Here you integrate EVERYTHING you've learned (vectors, embeddings, similarity, ANN, search, RAG) into a complete project: designing an end-to-end RAG system from scratch.

Estimated time: 3-4 hours


Module Objectives

  1. Design a complete RAG system (architecture, components, flows)
  2. Make informed decisions (chunking, embeddings, vector DB, ranking)
  3. Estimate costs and latencies (budget, SLAs)
  4. Identify the trade-offs (precision vs latency vs cost)
  5. Present a technical solution (a design document)

Structure: A single project divided into stages

This module does NOT have 7-8 small capsules. It's 1 capstone project divided into 6 stages that you complete in sequence:

StageActivityDuration
01Project introduction20 min
02Requirements and constraints30 min
03Architecture design60 min
04Technical decisions60 min
05Cost estimation30 min
06The final document40 min

The project: A RAG system for a university

Context:
A university with 100K academic documents (papers, theses, study guides) wants a chatbot for students and researchers.

Requirements:

  1. Conceptual queries ("papers about machine learning")
  2. Exact queries ("John Smith's 2020 thesis")
  3. Search by author, date, department
  4. Suggest related papers (diversity)
  5. Latency < 2 seconds
  6. Budget: $2000/month

The final deliverable

By the end of the module, you'll have a Technical Design Document that includes:

  1. The complete architecture (a diagram + the components)
  2. Justified technical decisions (chunking, embeddings, vector DB, ranking)
  3. A cost estimate (setup, queries/month)
  4. A trade-off analysis (precision vs latency vs cost)
  5. An evaluation plan (metrics, an evaluation set)
  6. Limitations and mitigations

How should you work through this module?

Option 1: Independently (recommended)
Read each stage, make your decisions, document your design. At the end, compare with the suggested solution.

Option 2: Guided
Read a stage → look at the suggested solution → move on to the next stage.

Option 3: As a team
Work with colleagues, debate the decisions, present a final solution.


Next capsule: 02-requirements-and-constraints.md — A detailed analysis of the case.