My college Software Design & Testing did this well. One big group project that takes the whole semester, but you have to write and submit a simple plan that outlines each team member's responsibility, then you have periodic milestones. Part of the milestones are reporting on what each team member actually did.

This works because it's closer to a real work environment, where you'll have a manager who's at least somewhat aware (or should be) of how much each person is accomplishing. The whole, "just let the group figure it out" process that is so common in schools doesn't work, because there's no one with manager-level awareness and authority.