First year engineering students in Finnish polytechnics have great motivation problems and very variable backgrounds. This leads to a high drop-out percentage and low study achievements, especially in the information technology programme. First year problems tend to concentrate on theoretical studies, especially mathematics. Information Technology programme in Helsinki Polytechnic has decided to give special emphasis to the start of the studies by placing the students in small groups appropriate to their school background and their mathematical abilities.

The engineering faculty has started using an interactive online mathematics testing and teaching system for the first year students. The system is based on algorithmically generated numerical and symbolic problems and it gives immediate grading and detailed feedback for students. The system is used by all information technology and industrial management beginning students.

The diagnostic tests of the system are used to assess the level of basic mathematical skills of the new students, both for students themselves and instructors, and also to place students in appropriate study groups. The results show that the diagnostic test correlates well with the achievements in mathematics class in the first study period.

In industrial management we have used the system also for continuous online self-tests and homework assignments. Students use the system regularly and they are using its feedback to monitor their mathematical progress, with minimal intervention by the teacher. The results in the assignment system and the tests correlate even better with the achievements in a regular class test.