Sprint: ML Model Fine-Tuning Mastery - Real World Projects
Goal: You will learn how to adapt strong base models into reliable domain specialists using supervised fine-tuning, parameter-efficient methods, and preference optimization. You will build intuition for when to use full fine-tuning vs adapters, how dataset quality dominates outcomes, and how to evaluate models for correctness, safety, and business impact. By the end, you will be able to design and ship a complete post-training pipeline: data curation, training, alignment, evaluation, and production rollout. The sprint is designed to move from small, local experiments to production-style model operations with clear observability and rollback strategy.
Introduction
ML model fine-tuning is the process of taking a pre-trained model and adapting it to a specific task, domain, style, policy, or operating constraint. Instead of paying the full compute/data cost of training from scratch, you reuse general capabilities from the base model and update only the parts needed for your goal.
What problem it solves today:
- Foundation models are broad but generic.
- Real products need domain vocabulary, response formats, policy behavior, and latency/cost constraints.
- Fine-tuning closes that gap while keeping iteration speed practical.
What you will build in this sprint:
- Vision and NLP fine-tuning baselines.
- Adapter-based LLM tuning (LoRA/QLoRA) on commodity hardware.
- Preference alignment pipelines (DPO/ORPO/KTO/GRPO-inspired workflows).
- Production-style rollout with quantization, monitoring, and drift response.
In scope:
- SFT, PEFT, quantization-aware training choices, alignment objectives, evaluation design, deployment controls.
Out of scope:
- Training base frontier models from scratch.
- GPU kernel authoring and distributed systems internals of pretraining.
Raw Data -> Curation -> Format Template -> Base Model Selection -> Post-Training Strategy
|
v
+-------------------------------+
| SFT / LoRA / QLoRA / DPO... |
+-------------------------------+
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v
Evaluation (Task + Safety + Cost + Latency + Drift)
|
v
Deployment + Monitoring + Rollback Plan
How to Use This Guide
- Read
## Theory Primerfirst. The projects assume these mental models. - Build in order from Project 1 to Project 8 at minimum; these form the core arc.
- For each project, complete the thinking exercise before implementation.
- Treat every “Definition of Done” checkbox as a release gate.
- Keep a lab notebook: dataset version, prompts/templates, hyperparameters, eval outputs, and failure notes.
- If you are time-constrained, use
## Recommended Learning Paths.
Prerequisites & Background Knowledge
Essential Prerequisites (Must Have)
- Python fundamentals: data loading, package management, debugging.
- Basic linear algebra and probability intuition.
- Familiarity with transformer concepts: tokens, attention, context window.
- CLI comfort: shell, logs, environment variables, GPU visibility commands.
- Recommended reading before starting:
- “Natural Language Processing with Transformers” by Tunstall et al. (Ch. 1-4)
- “Deep Learning” by Goodfellow, Bengio, Courville (optimization + regularization chapters)
Helpful But Not Required
- CUDA memory mental model.
- Distributed training concepts (DDP/FSDP/ZeRO).
- Bayesian calibration and uncertainty methods.
Self-Assessment Questions
- Can you explain why low learning rate is usually critical during fine-tuning?
- Can you define overfitting in terms of train/validation divergence?
- Can you explain the tradeoff between full fine-tuning and adapters?
- Can you design an evaluation set that cannot leak from training data?
- Can you detect when a model follows style but loses factuality?
Development Environment Setup Required Tools:
- Python 3.10+
- PyTorch 2.x
- Hugging Face
transformers,datasets,evaluate,trl,peft acceleratebitsandbytes(for quantized adapter training)
Recommended Tools:
- Weights & Biases or MLflow
- vLLM or Text Generation Inference (serving benchmarks)
- Labeling/QA workflow tools (spreadsheet + review rubric is enough)
Testing Your Setup:
$ python -c "import torch; print(torch.cuda.is_available())"
True
$ python -c "import transformers, peft, trl; print('ok')"
ok
$ nvidia-smi
# GPU listed with driver/runtime versions
Time Investment
- Simple projects: 4-8 hours each
- Moderate projects: 10-20 hours each
- Complex projects: 20-40 hours each
- Total sprint: 3-5 months part-time
Important Reality Check Fine-tuning failures are often data failures, not optimizer failures. Expect to spend more time auditing examples, templates, and labels than tuning hyperparameters.
Big Picture / Mental Model
Fine-tuning is an engineering loop, not a single training job.
+-------------------------------+
| Problem + Success Criteria |
+---------------+---------------+
|
v
+----------------+ +--------------------+ +---------------------+
| Data Sourcing | --> | Data QA + Splits | --> | Prompt/Format Design |
+----------------+ +--------------------+ +---------------------+
|
v
+-------------------------------+
| Post-Training Choice |
| SFT / LoRA / QLoRA / DPO ... |
+---------------+---------------+
|
v
+-------------------+ +--------------------+ +-----------------+
| Task Evaluation | + | Safety Evaluation | + | Cost/Latency |
+-------------------+ +--------------------+ +-----------------+
|
v
+----------------------------+
| Deploy + Monitor + Rollback|
+----------------------------+
Theory Primer
Chapter 1: Transfer Learning and Catastrophic Forgetting
Fundamentals Transfer learning means starting from a model that already learned broad statistical structure and then adapting it to your task with a smaller amount of domain data. In fine-tuning, the core promise is sample efficiency: you need far less data than training from scratch because the base model already encodes useful representations. The main hazard is catastrophic forgetting, where updates that help your target task overwrite previously useful capabilities. That usually appears when learning rates are too aggressive, training is too long for dataset size, or data diversity is too narrow. In practice, fine-tuning quality depends on controlled adaptation: stable optimization, representative data, and evaluation that checks both gain on target tasks and regression on general competence.
Deep Dive A pre-trained model is a compressed map of statistical regularities. For language models, those regularities include syntax, semantic associations, discourse patterns, and shallow reasoning priors. Fine-tuning modifies this map to increase probability mass around behaviors useful for your domain. Conceptually, every gradient step is a policy decision about what behavior should become easier for the model. If your training distribution is narrow, these decisions can over-specialize the model and reduce robustness outside your narrow slice.
The first design choice is adaptation scope: full model updates or constrained updates. Full updates maximize flexibility and can produce higher ceilings when data volume and compute are strong. They also increase risk of overfitting and forgetting. Constrained updates, including adapter-based methods discussed later, cap the degrees of freedom and often generalize better in low-data settings. The right choice depends on data scale, label quality, and product tolerance for regressions.
The second design choice is objective structure. Supervised fine-tuning (SFT) optimizes next-token likelihood over curated examples. The objective is simple and stable, but it treats all tokens as equally valuable unless you weight losses. For instruction tasks, that can overfit surface style if data quality is weak. High-performing teams define explicit example taxonomies: canonical answer, acceptable alternative, and disallowed failure mode. This improves gradient signal because the model repeatedly sees what right behavior looks like under varied phrasing.
The third design choice is schedule control. A common two-stage strategy is: brief warm adaptation of task head or adapters, then careful end-to-end updates if needed. In LLM post-training, this becomes: SFT first, preference optimization second. Even for pure SFT, small epochs with frequent validation are safer than long runs. You want early detection of divergence and mode collapse. If validation loss improves while business metrics degrade, your objective is mismatched to product success.
Catastrophic forgetting is best treated as a measurable risk, not an abstract warning. Build a regression suite containing broad prompts from the base model’s expected competence area. After each checkpoint, score both target and regression sets. Gate promotion on a weighted utility function, for example:
- Target quality must increase by at least X.
- Regression loss cannot exceed Y.
- Safety violation rate cannot increase above Z.
When teams skip this, they often ship a model that feels better in narrow demos but worse in production breadth. Another practical guard is mixed-data rehearsal: include a small percentage of diverse, high-quality general instruction data during domain tuning. This retains broad behavior while still specializing.
Optimization stability matters more than heroic hyperparameter hunting. Low learning rates, gradient clipping, short checkpoints, and deterministic seeds give clearer signal. If you cannot reproduce results across two runs, you do not yet understand your pipeline. Reproducibility is especially important when stakeholders ask why one checkpoint was promoted and another rejected.
Finally, transfer learning economics should be explicit. Fine-tuning is not automatically cheaper than prompt engineering plus retrieval; it is cheaper only when repeated inference gains justify training and maintenance cost. Build this model early: expected request volume, latency target, acceptable per-request cost, and retraining cadence. This converts model choice from taste to engineering decision.
How this fit on projects
- Core in Projects 1-5.
- Regression control appears strongly in Projects 7, 12, and 15.
Definitions & key terms
- Transfer learning: reuse of learned representations from a source task.
- Catastrophic forgetting: degradation of prior capabilities due to adaptation.
- Rehearsal: mixing general data into domain fine-tuning.
- Regression suite: fixed benchmark for capability preservation checks.
Mental model diagram
Base Capability Surface
|
| (fine-tuning updates)
v
+------------------------------+
| Target Gains / Side Losses |
+------------------------------+
|
+--> If updates too strong -> forgetting spikes
+--> If updates too weak -> no meaningful adaptation
How it works
- Define task utility and regression utility.
- Build clean splits and leakage checks.
- Train with conservative updates.
- Evaluate target + regression + safety together.
- Promote only when all constraints pass.
Invariants
- Validation set is never used for training decisions beyond checkpoint selection.
- Regression suite remains stable across experiments.
Failure modes
- Overfitting to template phrasing.
- Hidden data leakage.
- Quality drift masked by one metric.
Minimal concrete example
Pseudo-training plan:
- Input: base_model, domain_dataset, regression_dataset
- Train SFT for N short epochs at LR=low
- Every K steps:
- score(domain_eval)
- score(regression_eval)
- score(safety_eval)
- keep checkpoint only if domain_eval improves and regression/safety stay within limits
Common misconceptions
- “Lower training loss always means better product behavior.”
- “If model answers domain prompts well, broad checks are optional.”
Check-your-understanding questions
- Why can a model improve on a domain benchmark but worsen in production?
- When is full fine-tuning justified over constrained adaptation?
- How does rehearsal reduce catastrophic forgetting?
Check-your-understanding answers
- Domain benchmark can be narrow or leaked; production is broader.
- When you have enough high-quality data, compute budget, and strict target performance needs.
- It keeps gradients partially anchored to general behavior.
Real-world applications
- Legal drafting assistants.
- Medical coding support.
- Vertical customer support copilots.
Where you’ll apply it Projects 1, 3, 5, 7, 12, 15.
References
- LoRA paper: https://arxiv.org/abs/2106.09685
- QLoRA paper: https://arxiv.org/abs/2305.14314
Key insights Fine-tuning quality is constrained adaptation under explicit regression control.
Summary Transfer learning gives leverage, but only disciplined evaluation prevents silent capability loss.
Homework/Exercises to practice the concept
- Design a two-metric gate for one domain task and one regression task.
- Create a leakage checklist for your dataset pipeline.
Solutions to the homework/exercises
- Example gate: +3% domain F1, <=1% regression drop.
- Checklist: deduplicate by semantic hash, isolate validation sources, audit timestamp overlaps.
Chapter 2: Dataset Engineering, Tokenization, and Training Formats
Fundamentals Data engineering is the highest leverage part of fine-tuning. Models learn what the dataset rewards, including mistakes, ambiguity, and formatting noise. Good datasets are not just large; they are representative, consistent, and aligned with the required output schema. Tokenization is part of this engineering because the model consumes token sequences, not raw strings. The same text can create very different training dynamics depending on template structure, role delimiters, truncation, and context packing strategy. High-performing post-training pipelines treat dataset creation as a product: versioned sources, explicit annotation rules, inter-rater checks, and quality dashboards.
Deep Dive A fine-tuning dataset is a behavioral contract written in examples. If your contract is inconsistent, the model will be inconsistent. Start with task taxonomy: list the scenarios your product must handle, then allocate data proportionally to expected traffic and risk. For support assistants, that means balancing common questions with high-risk edge cases like billing disputes or policy exceptions. If you sample only easy examples, your validation score looks strong while production failure rate stays high.
Formatting decisions matter. In instruction tuning, examples usually follow role-based templates (system/user/assistant). The template becomes part of what the model learns. If inference-time prompts do not match training-time structure, performance drops. Teams often call this “prompt mismatch,” but technically it is distribution shift in serialized dialog format. Keep one canonical template registry and test strict conformance.
Tokenization choices create hidden costs. Long contexts increase memory and can dilute gradient signal if most tokens are low-value boilerplate. Sequence packing improves throughput by filling context windows more efficiently, but poor packing can mix unrelated examples and introduce cross-example contamination unless separators are explicit. Masking strategy is equally important: many chat fine-tuning pipelines compute loss only on assistant tokens to avoid teaching the model to predict user text. If masking is wrong, the objective misaligns.
Label quality dominates scaling. Ten thousand noisy examples can underperform one thousand curated ones. Build a data quality rubric with binary and graded checks:
- Correctness: factual and policy-valid.
- Completeness: includes the required structure and constraints.
- Style conformance: tone and format compliance.
- Safety: no prohibited content in positive targets.
Then run periodic adjudication: two reviewers score the same sample and resolve disagreements. This gives you inter-rater reliability and exposes ambiguous policy language.
Splitting strategy must prevent leakage. Random split is insufficient when near-duplicates exist. Use similarity-based deduplication and source-aware splitting. For temporal domains, use time-based splits to simulate future deployment. For enterprise data, keep account-level isolation so examples from the same customer do not appear in both train and validation.
Data augmentation can help, but only controlled augmentation. Synthetic generation from teacher models can expand coverage, yet synthetic artifacts can propagate errors or stylized bias. Treat synthetic data as a separate source with stricter acceptance thresholds and mandatory human spot checks.
Finally, dataset operations should support traceability. Every training run must record dataset version, filtering rules, template hash, and annotation policy version. Without this, you cannot explain regressions or comply with enterprise audit needs.
How this fit on projects
- Foundational for all 15 projects.
- Most critical in Projects 6-12 where format fidelity and preference pairs matter.
Definitions & key terms
- Data taxonomy: structured categories of behavior to cover.
- Template drift: mismatch between train and inference serialization.
- Loss masking: selecting which tokens contribute to optimization.
- Leakage: train/eval contamination causing inflated metrics.
Mental model diagram
Data Sources -> Cleaning -> Dedup -> Label QA -> Template Render -> Tokenization -> Split -> Train
| |
+-------------------- Traceability Metadata ------------+
How it works
- Define behavioral taxonomy.
- Ingest and normalize data.
- QA labels with rubric.
- Render canonical template.
- Tokenize with explicit truncation and masking.
- Split with anti-leakage controls.
Invariants
- Validation examples are source-isolated from training.
- Template version is fixed per experiment.
Failure modes
- Style-only learning without factual gains.
- Leakage from duplicate support tickets.
- Token truncation removing critical instruction text.
Minimal concrete example
Pseudo-dataset record:
{
"task_type": "billing_dispute",
"messages": [
{"role": "system", "text": "Follow policy P-104."},
{"role": "user", "text": "I was charged twice."},
{"role": "assistant", "text": "<structured response with steps>"}
],
"quality_score": 4.7,
"source": "human_reviewed_ticket"
}
Common misconceptions
- “More rows always beats better labels.”
- “Random split is enough for trustworthy evaluation.”
Check-your-understanding questions
- Why can template mismatch break a good model?
- Why is source-aware splitting better than pure random splitting?
- What happens if assistant-only masking is omitted by mistake?
Check-your-understanding answers
- The model learned behavior conditioned on a specific serialized pattern.
- It reduces hidden duplicates and leakage from correlated sources.
- Objective shifts toward predicting user/system text, degrading desired behavior.
Real-world applications
- Policy-constrained assistants.
- Structured extraction pipelines.
- Tool-calling copilots.
Where you’ll apply it Projects 3, 4, 6, 7, 9, 10, 12, 15.
References
- Hugging Face TRL docs: https://huggingface.co/docs/trl/index
- OpenAI fine-tuning docs: https://platform.openai.com/docs/guides/fine-tuning
Key insights Dataset design is policy design in executable form.
Summary Reliable fine-tuning needs quality-controlled data, stable templates, and strict anti-leakage splits.
Homework/Exercises to practice the concept
- Define a five-category taxonomy for your domain assistant.
- Design a QA rubric with 1-5 scoring and reviewer notes.
Solutions to the homework/exercises
- Example categories: account, billing, technical, compliance, escalation.
- Score correctness/completeness/safety/style; average score threshold >=4.0 for train inclusion.
Chapter 3: Parameter-Efficient Fine-Tuning and Quantization (LoRA, QLoRA, DoRA)
Fundamentals Parameter-efficient fine-tuning (PEFT) adapts large models by updating a small subset of parameters instead of all weights. LoRA introduces low-rank matrices that approximate weight updates while freezing original model parameters. QLoRA extends this by loading base weights in low precision (for example 4-bit) so larger models fit on smaller GPUs, while training adapter weights in higher precision. DoRA separates direction and magnitude components of updates to improve low-rank adaptation quality. The practical value is dramatic: lower memory, faster experiments, smaller artifacts, and easier multi-tenant deployment of many specialized adapters over one base model.
Deep Dive Full fine-tuning updates every parameter, which is flexible but expensive in memory, optimizer state, and checkpoint size. PEFT reframes adaptation as constrained optimization. Instead of learning a full delta matrix for each layer, LoRA learns two smaller matrices whose product approximates the update. If the task-specific change lies in a low-dimensional subspace, this approximation is highly effective. You get most of the adaptation benefit at a fraction of the cost.
QLoRA pushes this further with quantized base weights. The key idea is to keep frozen pretrained weights in compressed representation while preserving enough numerical fidelity for forward and backward passes through adapters. This enables training models that were previously out of reach for single-GPU users. The design tradeoff is numerical complexity: quantization and dequantization steps can affect stability, and hyperparameters like rank, alpha, and target modules become more sensitive.
Adapter placement is not arbitrary. In transformers, adaptation is usually applied to attention and/or MLP projections. Different placements affect quality-latency tradeoffs. Attention-only updates may preserve more generality; broader placement may boost domain fit. You should treat adapter config as part of model architecture search, not a fixed default.
DoRA improves on LoRA by decoupling update direction from magnitude, addressing cases where low-rank approximation captures orientation but misses scale. In practice, this can help under strict parameter budgets. But as with all methods, success depends on dataset quality and objective alignment; PEFT is not magic against bad data.
Quantization strategy needs production thinking. A common workflow is:
- Train adapters with quantized base model.
- Evaluate adapter-on-base directly.
- Optionally merge adapters for inference simplicity.
- Benchmark merged vs unmerged variants on latency, throughput, and memory.
Merged checkpoints can simplify serving but increase artifact size. Unmerged adapters support multi-specialist routing with one base model, which is often better for cost.
PEFT also changes organizational workflow. Different teams can own separate adapters (for language, legal, support) while sharing a governed base. This accelerates experimentation but requires strict adapter registry, metadata, and compatibility checks.
Failure analysis in PEFT should include adapter saturation and rank bottlenecks. If loss plateaus early and outputs remain generic, rank may be too low or target module choice too narrow. If outputs become unstable, learning rate may be too high for quantized dynamics.
From an economics view, PEFT lowers the barrier to frequent retraining. That enables continuous adaptation to policy updates, seasonal language, or product changes. The risk is shipping too many weakly validated adapters. Keep centralized evaluation gates regardless of low training cost.
How this fit on projects
- Central to Projects 5, 6, 11, 14, and 15.
Definitions & key terms
- LoRA rank: dimensionality of low-rank adaptation matrices.
- QLoRA: quantized base + adapter training strategy.
- Adapter merge: folding adapter deltas into base weights.
- Target modules: layer components selected for adapter injection.
Mental model diagram
Frozen Base Weights (quantized optional)
|
+----> Adapter A (support domain)
+----> Adapter B (finance domain)
+----> Adapter C (legal domain)
Single base, many lightweight specializations
How it works
- Load base model (optionally quantized).
- Inject adapters into chosen modules.
- Train only adapter parameters.
- Evaluate quality and regression.
- Keep as adapters or merge for serving.
Invariants
- Base model weights remain frozen in PEFT runs.
- Adapter metadata includes base model and tokenizer version.
Failure modes
- Wrong target modules reduce learning capacity.
- Rank too low causes underfitting.
- Quantization instabilities create noisy outputs.
Minimal concrete example
Pseudo-config:
adapter_method: lora
rank: 16
alpha: 32
target_modules: [attention_q, attention_v]
base_precision: 4bit
trainable_params: ~0.2% of total
Common misconceptions
- “LoRA always matches full fine-tuning.”
- “QLoRA removes the need for careful evaluation.”
Check-your-understanding questions
- Why can one base model host multiple domain adapters?
- What is the main operational tradeoff of adapter merge?
- Why can rank be seen as adaptation capacity?
Check-your-understanding answers
- Base stays fixed; each adapter encodes a small domain-specific delta.
- Simpler serving path vs larger artifacts and less modularity.
- Higher rank allows richer update subspace, at higher compute/memory cost.
Real-world applications
- Vertical copilots with shared infrastructure.
- Rapid policy updates via adapter swaps.
- Multi-tenant model serving.
Where you’ll apply it Projects 5, 6, 11, 14, 15.
References
- LoRA: https://arxiv.org/abs/2106.09685
- QLoRA: https://arxiv.org/abs/2305.14314
- DoRA: https://arxiv.org/abs/2402.09353
Key insights PEFT turns large-model adaptation from infrastructure-heavy to iteration-friendly.
Summary Adapters and quantization provide a practical path to fine-tune large models under realistic resource limits.
Homework/Exercises to practice the concept
- Compare two adapter ranks on the same dataset and report quality/memory.
- Benchmark merged vs unmerged serving latency.
Solutions to the homework/exercises
- Report table: rank, trainable params, validation metric, GPU peak memory.
- Include p50/p95 latency and tokens/sec for both variants.
Chapter 4: Alignment Objectives Beyond SFT (DPO, ORPO, KTO, GRPO)
Fundamentals SFT teaches models by imitation of preferred outputs. Alignment objectives go further: they optimize relative preference between better and worse responses or reward-oriented behavior under constraints. DPO uses preference pairs to optimize policy without training a separate reward model. ORPO combines odds-ratio style preference optimization with supervised signal in one stage. KTO aligns behavior with prospect-theoretic utility framing. GRPO-style methods (used in modern reasoning workflows) optimize group-relative advantages from sampled outputs. These methods are useful when plain imitation produces fluent but misaligned behavior.
Deep Dive In real products, “correct” is often comparative. You may not have one perfect response, but you can reliably say response A is better than B on policy, helpfulness, concision, or safety. Preference-based methods exploit this signal.
DPO reframes preference optimization as a classification-like objective over chosen vs rejected responses relative to a reference policy. It removes the need for explicit reward model fitting and can be stable when preference pairs are high quality. The main practical challenge is pair quality. If rejected answers are weak strawmen, the model learns superficial cues rather than robust behavior.
ORPO integrates supervised and preference learning into one objective. This can simplify pipelines by reducing stage transitions and hyperparameter surfaces. It is attractive when teams want stronger alignment than SFT but less operational complexity than multi-stage RL pipelines.
KTO introduces a utility perspective inspired by prospect theory, aiming to better reflect human preference asymmetry in gains vs losses. This is useful when penalties for harmful outputs should outweigh gains from stylistic improvements.
GRPO-style approaches evaluate multiple sampled trajectories and optimize relative advantage across the group. In reasoning-heavy tasks, this can improve structured problem solving because the model is repeatedly encouraged to produce outputs that rank better than peers under task-specific checks.
None of these methods remove the need for SFT-quality data. Preference optimization amplifies signal already present in examples and judgments. If judges are inconsistent or policies unclear, optimization will codify inconsistency.
Designing preference data is therefore the critical engineering step:
- Define preference rubric with hard constraints (safety/policy) and soft constraints (style/helpfulness).
- Include close-call pairs, not only obvious wins.
- Balance domains and difficulty.
- Track annotator disagreement and resolve guideline ambiguity.
Evaluation must include pairwise win rate and absolute quality checks. A model can improve win rate while still hallucinating more if judges overweight style. Add factuality and policy violation audits.
Operationally, alignment stages are best treated as successive filters:
- SFT for baseline instruction following.
- Preference optimization for policy/helpfulness behavior.
- Safety stress testing and adversarial prompts.
- Rollout with monitoring and fallback.
This staged view keeps debugging tractable. When quality degrades, you can isolate whether failure came from base SFT data, pair construction, or objective weighting.
How this fit on projects
- Core in Projects 7 and 8.
- Reinforced in Projects 9, 12, and 15.
Definitions & key terms
- Preference pair: (chosen, rejected) response pair for same prompt.
- Reference policy: baseline model used for regularization/comparison.
- Win rate: percent of pairwise judgments model wins vs baseline.
- Advantage (group-relative): relative score among sampled candidates.
Mental model diagram
Prompt -> Candidate A / B / C
| | |
+--- preference/judge scoring ---+
|
v
Objective update (DPO/ORPO/KTO/GRPO)
How it works
- Build preference dataset.
- Select alignment objective.
- Train against baseline/reference.
- Measure win rate + factuality + safety.
- Promote only if all gates improve.
Invariants
- Preference labels are policy-grounded, not arbitrary style votes.
- Safety violations are hard-fail regardless of win rate.
Failure modes
- Reward hacking of judge preferences.
- Style inflation with factual decline.
- Domain skew in preference data.
Minimal concrete example
Pseudo-pair:
prompt: "Explain refund policy for annual plan"
chosen: "Policy-accurate answer with steps + caveats"
rejected: "Confident but policy-inaccurate answer"
label_reason: "Policy correctness outweighs tone"
Common misconceptions
- “Preference optimization is optional polish.”
- “One judge metric is sufficient for release decisions.”
Check-your-understanding questions
- Why are close-call preference pairs important?
- Why can win rate rise while factuality drops?
- What is a reference policy doing in DPO-style setups?
Check-your-understanding answers
- They teach nuanced boundaries rather than trivial cues.
- Judge or rubric may overvalue tone/verbosity over correctness.
- It anchors optimization and controls destructive drift.
Real-world applications
- Enterprise policy assistants.
- Regulated-domain response control.
- Reasoning model refinement.
Where you’ll apply it Projects 7, 8, 9, 12, 15.
References
- DPO (NeurIPS 2023): https://papers.nips.cc/paper_files/paper/2023/hash/a85b405ed65c6477a4fe8302b10babf7-Abstract-Conference.html
- ORPO: https://arxiv.org/abs/2403.07691
- KTO: https://arxiv.org/abs/2402.01306
- GRPO usage example (DeepSeekMath): https://arxiv.org/abs/2402.03300
Key insights Alignment methods are only as good as the preference data and rubric that feed them.
Summary SFT gives fluent behavior; preference objectives shape policy-consistent behavior under tradeoffs.
Homework/Exercises to practice the concept
- Create 30 preference pairs with explicit policy justifications.
- Design a release gate mixing win rate, factuality, and safety.
Solutions to the homework/exercises
- Include at least 10 close-call pairs and 5 adversarial prompts.
- Example gate: +8% win rate, <=0 factuality regression, <=safety baseline violations.
Chapter 5: Evaluation, Safety, and Production Fine-Tuning Operations
Fundamentals Training is only half the system. A fine-tuned model is useful when it is measurable, predictable, and recoverable in production. Evaluation must cover task quality, policy/safety behavior, latency, throughput, and cost. Safety must include both static policy tests and adversarial probing. Operations must include canary rollout, monitoring, and rollback. Without this, teams confuse model demos with production readiness.
Deep Dive A robust evaluation stack has multiple layers:
- Offline task metrics (accuracy, F1, exact match, BLEU/ROUGE where relevant).
- Judge-based or pairwise comparisons for nuanced response quality.
- Safety and policy suites with hard-fail categories.
- Economic metrics: tokens/sec, p95 latency, cost per request, memory footprint.
Single-metric optimization fails in production because business value is multi-objective. For example, increasing output length can raise judged helpfulness but hurt latency and cost. A production-minded team defines a utility frontier and chooses checkpoints on that frontier, not on one scalar.
Safety testing should include:
- Prompt injection resistance for tool-calling contexts.
- Sensitive content policy tests.
- Hallucination checks under missing-context prompts.
- Refusal quality (not just refusal frequency).
Many teams now combine deterministic rule checks and LLM-as-judge scoring. Judges are useful for scale but require calibration with human audits. Keep a recurring manual review sample to detect judge drift.
Deployment strategy should mirror classic software rollout:
- Shadow or offline replay.
- Small canary traffic segment.
- Monitor key indicators and error budgets.
- Gradual ramp if stable.
- Immediate rollback path if regressions appear.
Observability must include prompt/response tracing with redaction, model version tags, adapter version, and feature flag state. When incidents occur, you need exact reconstruction capability. Store enough metadata to reproduce behavior without storing sensitive raw data unnecessarily.
Drift is inevitable. User language, product policy, and adversarial behavior change over time. Build drift signals:
- Input drift (topic, length, language distribution).
- Output drift (refusal rate, structured format error rate).
- Business drift (resolution time, escalation rate).
Trigger retraining only when drift crosses thresholds and data quality pipeline is ready. Continuous fine-tuning without governance creates noisy model churn.
Cost governance is a first-class design variable. Fine-tuning can reduce prompt length requirements and improve first-pass success, lowering overall cost even with occasional retraining. But this is true only if evaluation and rollout discipline prevents expensive regressions.
Finally, document model cards for each release: intended use, prohibited use, training data scope, known limitations, evaluation summary, and rollback pointer. This improves cross-team trust and audit readiness.
How this fit on projects
- Present in every project; central in Projects 12-15.
Definitions & key terms
- Canary rollout: gradual production exposure to a new model version.
- Error budget: tolerated regression envelope before rollback.
- Drift: distribution change between training and live traffic.
- Model card: release documentation of behavior and limits.
Mental model diagram
Train -> Offline Eval -> Safety Eval -> Canary -> Full Rollout
^ |
|----------------- Drift + Incident Feedback --+
How it works
- Score checkpoint on multi-metric suite.
- Run safety and adversarial tests.
- Canary deploy with monitoring dashboards.
- Roll forward or rollback based on gates.
- Feed incidents into next data curation cycle.
Invariants
- No production promotion without safety suite pass.
- Every serving model maps to a reproducible dataset and config version.
Failure modes
- Shipping on benchmark gain alone.
- Missing rollback artifacts.
- Undetected drift due weak telemetry.
Minimal concrete example
Release gate pseudo-policy:
- task_f1 >= previous + 2%
- safety_critical_violations == 0
- p95_latency <= 1.2x baseline
- cost_per_1k_requests <= budget
If any gate fails -> block release
Common misconceptions
- “Offline benchmark gains guarantee production gains.”
- “Safety is separate from core quality.”
Check-your-understanding questions
- Why is canary rollout essential for model updates?
- What is the risk of relying only on LLM-as-judge evaluation?
- Why should rollback artifacts be prepared before rollout?
Check-your-understanding answers
- It limits blast radius and reveals real-traffic regressions.
- Judge bias/drift can hide real failures.
- Model incidents require immediate reversal without rebuilding artifacts.
Real-world applications
- Customer support copilots.
- Regulated assistant workflows.
- Retrieval-augmented enterprise Q&A.
Where you’ll apply it Projects 9, 12, 14, 15.
References
- OpenAI fine-tuning methods docs: https://platform.openai.com/docs/guides/fine-tuning
- TRL overview: https://huggingface.co/docs/trl/index
Key insights Fine-tuning without evaluation and rollback discipline is unmanaged risk.
Summary Production fine-tuning is a closed-loop system that couples model changes with measurable operational controls.
Homework/Exercises to practice the concept
- Draft a release gate table for one domain assistant.
- Define three drift alerts and their retraining triggers.
Solutions to the homework/exercises
- Include quality, safety, latency, and cost thresholds.
- Example alerts: policy violation rate, structured format failure rate, topic distribution shift.
Glossary
- SFT: Supervised fine-tuning on curated input-output examples.
- PEFT: Parameter-efficient fine-tuning that updates small trainable subsets.
- LoRA: Low-rank adapter method for efficient weight updates.
- QLoRA: Quantized base model + LoRA training approach.
- DPO: Preference optimization objective without explicit reward model training.
- ORPO: Odds-ratio preference optimization that unifies supervised and preference signals.
- KTO: Kahneman-Tversky optimization approach for preference-aware alignment.
- GRPO: Group-relative optimization approach used in reasoning-oriented post-training.
- Catastrophic forgetting: Loss of prior capabilities during adaptation.
- Canary rollout: Small-traffic deployment stage before full release.
Why ML Model Fine-Tuning Matters
Modern AI product teams are no longer deciding whether to customize models, but how to do it safely and economically.
Real-world context with current data:
- GitHub reported 4.3 million AI projects on the platform and 1 million new AI projects in 2024. It also reported generative AI projects grew 98% year-over-year. This indicates rapidly increasing demand for practical post-training and specialization workflows. Source: GitHub Octoverse 2024.
- OpenAI’s current fine-tuning guide exposes multiple production methods (supervised fine-tuning, direct preference optimization, and reinforcement fine-tuning), showing mainstream platforms now treat post-training as a standard deployment pathway rather than niche research.
- Open model ecosystems now include production-grade families with different fine-tuning profiles: Llama 3.3, Qwen2.5, Mistral Small 3.1, Gemma 2, Phi-4, and reasoning-focused models such as DeepSeek-R1.
Earlier Workflow (generic prompting only)
User prompt -> Base model -> inconsistent domain behavior
Modern Workflow (post-training stack)
User prompt -> Domain-tuned model -> policy-aware, format-stable, lower retry cost
Context & Evolution
- 2021: LoRA made large-model adaptation significantly cheaper.
- 2023: QLoRA enabled strong adapter training with tight memory budgets.
- 2023-2025: Preference optimization methods (DPO/ORPO/KTO/GRPO-style workflows) became practical in open-source stacks.
Concept Summary Table
| Concept Cluster | What You Need to Internalize |
|---|---|
| Transfer Learning & Forgetting Control | Fine-tuning is constrained adaptation; always measure target gains and broad regressions together. |
| Dataset Engineering & Tokenization | Data quality, template consistency, and anti-leakage splitting dominate final behavior more than hyperparameter tweaks. |
| PEFT + Quantization | LoRA/QLoRA/DoRA provide high-leverage adaptation under realistic hardware budgets and support multi-adapter deployment models. |
| Alignment Objectives (DPO/ORPO/KTO/GRPO) | Comparative preference signals can enforce policy/helpfulness tradeoffs better than SFT-only pipelines. |
| Evaluation, Safety, and Operations | Release quality requires multi-metric gates, safety checks, canary rollout, and drift-aware retraining loops. |
Project-to-Concept Map
| Project | Concepts Applied |
|---|---|
| Project 1 | Transfer Learning, Evaluation |
| Project 2 | Transfer Learning, Data Engineering, Safety |
| Project 3 | Data Engineering, Evaluation |
| Project 4 | Data Engineering, Transfer Learning |
| Project 5 | PEFT + Quantization, Evaluation |
| Project 6 | PEFT + Quantization, Data Engineering |
| Project 7 | Alignment Objectives, Evaluation |
| Project 8 | Alignment Objectives, Data Engineering |
| Project 9 | Alignment Objectives, Data Engineering, Safety |
| Project 10 | Data Engineering, Evaluation |
| Project 11 | PEFT + Quantization, Multimodal Data Engineering |
| Project 12 | Alignment + Evaluation + Safety |
| Project 13 | Transfer Learning, Distillation, Ops |
| Project 14 | PEFT + Quantization, Deployment Ops |
| Project 15 | Evaluation, Drift Monitoring, Continuous Fine-Tuning Ops |
Deep Dive Reading by Concept
| Concept | Book and Chapter | Why This Matters |
|---|---|---|
| Transfer Learning & Forgetting | “Deep Learning” (Goodfellow et al.) - Optimization and Generalization chapters | Gives theoretical grounding for stable adaptation and overfitting control. |
| Dataset Engineering & Tokenization | “Natural Language Processing with Transformers” - Ch. 2-4 | Practical mechanics for tokenization, dataset shaping, and trainer workflows. |
| PEFT + Quantization | LoRA / QLoRA / DoRA papers | Primary-source understanding of adapter math and memory tradeoffs. |
| Alignment Objectives | DPO, ORPO, KTO, GRPO-related papers | Explains why preference optimization changes behavior differently than SFT alone. |
| Eval/Safety/Ops | “Designing Machine Learning Systems” (Chip Huyen) - evaluation and deployment chapters | Connects model training decisions to production reliability and cost. |
Quick Start: Your First 48 Hours
Day 1:
- Read Theory Primer Chapters 1-2.
- Complete Project 1 setup and first baseline run.
- Record baseline metrics and one failure case.
Day 2:
- Finish Project 1 Definition of Done.
- Read Chapter 3 (PEFT + Quantization).
- Start Project 5 environment prep and memory benchmarking.
Recommended Learning Paths
Path 1: The Practical LLM Builder (Recommended)
- Project 3 -> Project 4 -> Project 5 -> Project 6 -> Project 7 -> Project 14 -> Project 15
Path 2: The Applied Computer Vision Specialist
- Project 1 -> Project 2 -> Project 11 -> Project 14
Path 3: The Alignment Engineer
- Project 4 -> Project 7 -> Project 8 -> Project 9 -> Project 12 -> Project 15
Path 4: The ML Platform Engineer
- Project 5 -> Project 6 -> Project 13 -> Project 14 -> Project 15
Success Metrics
- You can justify when to use full fine-tuning vs PEFT for a given budget and risk profile.
- You can build leakage-resistant datasets with reproducible splits and template discipline.
- You can run at least one preference optimization workflow and explain the tradeoffs.
- You can deploy with canary + rollback and detect drift with actionable thresholds.
- You can produce a model card and release gate report for every promoted checkpoint.
Project Overview Table
| # | Project | Difficulty | Time | Main Focus |
|---|---|---|---|---|
| 1 | Cats vs Dogs Image Classifier | Level 2 | Weekend | Transfer learning baseline |
| 2 | Pneumonia Detection from X-Rays | Level 3 | Weekend | Class imbalance + medical eval |
| 3 | Movie Review Sentiment Analyzer | Level 2 | Weekend | NLP encoder fine-tuning |
| 4 | Sarcastic AI Chatbot (SFT) | Level 3 | 1 week | Instruction/chat formatting |
| 5 | LoRA Adapter for 7B Assistant | Level 4 | 1-2 weeks | PEFT on larger LLM |
| 6 | QLoRA Support Ticket Specialist | Level 4 | 1-2 weeks | Quantized adapter training |
| 7 | DPO for Helpfulness vs Safety | Level 4 | 2 weeks | Preference optimization |
| 8 | ORPO on Synthetic Preference Pairs | Level 4 | 2 weeks | One-stage alignment objective |
| 9 | Tool-Calling JSON Instruction Tune | Level 3 | 1 week | Structured output reliability |
| 10 | Multilingual Support Fine-Tune | Level 3 | 1-2 weeks | Cross-lingual adaptation |
| 11 | VLM Receipt Understanding Adapter | Level 4 | 2 weeks | Vision-language post-training |
| 12 | RAG Citation Discipline Fine-Tune | Level 4 | 2 weeks | Faithfulness + grounded answers |
| 13 | Teacher-Student Distillation Sprint | Level 3 | 1 week | Small model compression |
| 14 | Quantized Serving and Adapter Merge Benchmark | Level 3 | 1 week | Cost/latency operations |
| 15 | Continuous Fine-Tuning with Drift Ops | Level 5 | 2-3 weeks | Production lifecycle |
Project List
The following projects guide you from introductory transfer learning to production-grade post-training operations.
Project 1: Cats vs Dogs Image Classifier
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 2: Practical but Forgettable
- Business Potential: 1. The “Resume Gold”
- Difficulty: Level 2: Intermediate
- Knowledge Area: Computer Vision
- Software or Tool: PyTorch, Hugging Face Transformers
- Main Book: “Deep Learning with Python” by François Chollet
What you will build: A binary image classifier specialized for pet photos with robust augmentations.
Why it teaches fine-tuning: You will see end-to-end transfer learning with clear measurable gains.
Core challenges you will face:
- Data augmentation discipline -> maps to data generalization.
- Head replacement and freeze/unfreeze schedule -> maps to transfer control.
- Overfitting detection -> maps to evaluation rigor.
Real World Outcome
You run one command and receive deterministic validation metrics and confusion matrix output:
$ mlft train project1-cats-dogs --config configs/p1.yaml
[run] dataset=train:20000 val:5000
[run] phase1=head-only epochs=3
[run] phase2=full-unfreeze epochs=2 lr=1e-5
[eval] accuracy=0.9852 f1=0.9850
[eval] confusion_matrix=[[2471,29],[45,2455]]
[done] exported checkpoint: checkpoints/p1-best
The Core Question You Are Answering
“How much domain specialization can I get by changing only a small part of a strong vision model first, then carefully unfreezing the rest?”
This reveals why schedule strategy matters more than brute-force training.
Concepts You Must Understand First
- Transfer Learning Basics
- Why freeze base layers first?
- Book Reference: “Deep Learning” (optimization/generalization chapters)
- Data Augmentation
- Which transforms preserve label semantics?
- Book Reference: “Deep Learning with Python” (computer vision chapter)
- Evaluation Metrics
- Why F1 may be more informative than raw accuracy.
- Book Reference: “Designing Machine Learning Systems”
Questions to Guide Your Design
- Model Scope
- Do I need full unfreeze, or is head-only enough?
- What latency budget constrains architecture choice?
- Data Strategy
- Which augmentation choices reduce overfitting without corrupting labels?
- How do I prevent near-duplicate leakage across splits?
Thinking Exercise
Error Taxonomy Before Training
Sketch likely failure modes (motion blur, side profile, low light). Predict which class will have higher false negatives and why.
The Interview Questions They Will Ask
- “Why not train from scratch for this dataset?”
- “What does freeze-then-unfreeze buy you?”
- “How do you know you did not overfit?”
- “How would you compress this model for mobile inference?”
- “What is your rollback plan if production accuracy drops?”
Hints in Layers
Hint 1: Starting Point Use a pre-trained backbone with a small classifier head.
Hint 2: Next Level Run two phases: head-only adaptation, then low-LR full tuning.
Hint 3: Technical Details
Pseudocode: freeze(base) -> train(head) -> unfreeze(base) -> train(all, low_lr).
Hint 4: Tools/Debugging Log train/val curves every epoch and stop if divergence appears.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Vision transfer learning | “Deep Learning with Python” | CV chapter |
| Generalization | “Deep Learning” | Optimization/generalization |
Common Pitfalls and Debugging
Problem 1: “Validation accuracy spikes then collapses”
- Why: Learning rate too high after unfreeze.
- Fix: Reduce LR by 10x in phase 2.
- Quick test: Re-run 1 epoch with reduced LR and compare val loss trend.
Problem 2: “Near-perfect metrics but weak real photos”
- Why: Split leakage from near-duplicates.
- Fix: Rebuild splits with similarity dedup.
- Quick test: Compute perceptual hash overlap across train/val.
Definition of Done
- Two-phase training executed with saved checkpoints.
- Validation metrics exceed baseline by defined threshold.
- Confusion matrix analyzed with documented failure categories.
- Reproducible run config stored.
Project 2: Pneumonia Detection from X-Rays
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 3: Genuinely Clever
- Business Potential: 3. The “Service & Support” Model
- Difficulty: Level 3: Advanced
- Knowledge Area: Medical Computer Vision
- Software or Tool: PyTorch, scikit-learn
- Main Book: “Designing Machine Learning Systems”
What you will build: An imbalanced medical image classifier with calibrated thresholding.
Why it teaches fine-tuning: You confront high-stakes metrics and class imbalance.
Core challenges you will face:
- Imbalanced labels -> maps to weighted loss and thresholding.
- False negative risk -> maps to clinical cost-aware evaluation.
- Domain shift -> maps to robustness checks.
Real World Outcome
$ mlft train project2-xray --config configs/p2.yaml
[run] class_distribution normal=1341 pneumonia=3875
[train] weighted_loss=enabled
[eval] auc=0.962 precision=0.931 recall=0.954 f1=0.942
[eval] threshold_selected=0.42 (maximize recall under precision floor 0.90)
[done] report: reports/p2_clinical_eval.md
The Core Question You Are Answering
“How do I optimize a fine-tuned model when false negatives are more costly than false positives?”
Concepts You Must Understand First
- Class Imbalance Handling
- Weighted loss vs resampling tradeoffs.
- Book Reference: “Designing Machine Learning Systems”
- Threshold Calibration
- Why default threshold 0.5 is not always correct.
- Book Reference: Practical ML system design resources.
- Safety-Oriented Evaluation
- Clinical-cost framing of metric choices.
- Book Reference: AI in healthcare evaluation papers.
Questions to Guide Your Design
- Metric Strategy
- Which metric aligns with risk policy?
- What is minimum acceptable recall?
- Data Quality
- Are labels noisy across institutions?
- How do I detect acquisition-device drift?
Thinking Exercise
Draw a confusion matrix and assign business/clinical cost to each cell before training.
The Interview Questions They Will Ask
- “Why is accuracy insufficient here?”
- “How did you choose the decision threshold?”
- “How do you evaluate fairness across subgroups?”
- “What shift detection would you run post-deployment?”
- “What do you do when labels are noisy?”
Hints in Layers
Hint 1: Starting Point Use transfer learning identical to Project 1.
Hint 2: Next Level Optimize recall-constrained thresholding.
Hint 3: Technical Details
Pseudocode: for t in thresholds: score(cost_weighted_metric(t)).
Hint 4: Tools/Debugging Inspect false negatives manually by subgroup.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| ML in production risk | “Designing Machine Learning Systems” | Evaluation chapters |
| Vision fundamentals | “Deep Learning with Python” | Vision transfer section |
Common Pitfalls and Debugging
Problem 1: “High AUC but poor operational recall”
- Why: Threshold never tuned.
- Fix: Explicit threshold search with recall floor.
- Quick test: Plot precision-recall curve and pick policy-compliant point.
Definition of Done
- Weighted-loss or imbalance strategy documented.
- Threshold chosen using explicit risk criterion.
- False negative analysis report created.
- Reproducible evaluation notebook/log exported.
Project 3: Movie Review Sentiment Analyzer
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 2: Practical but Forgettable
- Business Potential: 1. The “Resume Gold”
- Difficulty: Level 2: Intermediate
- Knowledge Area: NLP Classification
- Software or Tool: Hugging Face Transformers + Datasets
- Main Book: “Natural Language Processing with Transformers”
What you will build: A robust sentiment classifier with calibration and error slices.
Why it teaches fine-tuning: This is the canonical encoder-model fine-tuning pipeline.
Core challenges you will face:
- Tokenization policy -> maps to sequence truncation strategy.
- Template consistency -> maps to stable pre/post-processing.
- Slice-based evaluation -> maps to meaningful debugging.
Real World Outcome
$ mlft train project3-imdb --config configs/p3.yaml
[run] model=distilbert-base-uncased
[eval] accuracy=0.942 f1=0.941 ece=0.031
[slices] long_reviews_f1=0.923 short_reviews_f1=0.951
[done] inference endpoint ready: serving/p3
The Core Question You Are Answering
“How do I turn generic language understanding into reliable task-specific classification with measurable calibration?”
Concepts You Must Understand First
- Tokenization and truncation
- Book Reference: NLP with Transformers, tokenizer chapter.
- Sequence classification objectives
- Book Reference: NLP with Transformers, model fine-tuning chapters.
- Calibration metrics
- Book Reference: Production ML references.
Questions to Guide Your Design
- What max sequence length balances fidelity and cost?
- Which slices reveal hidden bias or brittleness?
Thinking Exercise
Create three synthetic reviews where sentiment words conflict with context (sarcasm/negation) and predict model errors.
The Interview Questions They Will Ask
- “Why choose an encoder model instead of a generative model for this task?”
- “How do you handle reviews longer than context window?”
- “What does calibration error tell you?”
- “How would you adapt this to multilingual sentiment?”
Hints in Layers
Hint 1: Starting Point Start with a compact encoder checkpoint.
Hint 2: Next Level Track both F1 and calibration.
Hint 3: Technical Details
Pseudocode: tokenize -> pad/truncate -> classify -> temperature-scale logits.
Hint 4: Tools/Debugging Build error slices by review length and negation patterns.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| HF pipeline | “NLP with Transformers” | Ch. 2-4 |
| Calibration and evaluation | “Designing Machine Learning Systems” | Evaluation |
Common Pitfalls and Debugging
Problem 1: “Great aggregate metric, poor long-text quality”
- Why: Aggressive truncation discards sentiment-bearing sections.
- Fix: Increase context length or chunking strategy.
- Quick test: Compare long-review slice before/after changes.
Definition of Done
- Fine-tuned classifier reaches target F1.
- Calibration measured and improved if needed.
- Error slice report documented.
- Deterministic inference config saved.
Project 4: Sarcastic AI Chatbot (SFT)
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 2. The “Micro-SaaS / Pro Tool”
- Difficulty: Level 3: Advanced
- Knowledge Area: Generative NLP
- Software or Tool: Transformers, TRL
- Main Book: “NLP with Transformers”
What you will build: A style-controlled chat assistant tuned for consistent sarcasm without policy breakage.
Why it teaches fine-tuning: Demonstrates generative SFT data formatting, style learning, and qualitative evaluation.
Core challenges you will face:
- Conversation formatting -> maps to template discipline.
- Style vs correctness balance -> maps to objective quality tradeoffs.
- Qualitative eval design -> maps to rubric-driven review.
Real World Outcome
$ mlft chat project4-sarcasm --model checkpoints/p4-best
user> Explain DNS in one paragraph
assistant> Sure, because nothing says "fun" like naming servers. DNS is the phonebook of the internet...
[eval] style_consistency=0.88 factuality=0.91 safety_violations=0
The Core Question You Are Answering
“Can I teach a model a stable style while preserving factual and policy correctness?”
Concepts You Must Understand First
- Chat template serialization.
- SFT objective behavior.
- Human rubric evaluation.
Questions to Guide Your Design
- Which style markers are safe and reusable?
- How do you detect when style harms content quality?
Thinking Exercise
Write a rubric with 1-5 scores for style, correctness, and safety. Apply it to 10 sample outputs manually.
The Interview Questions They Will Ask
- “How do you avoid turning sarcasm into toxicity?”
- “Why is format consistency critical for chat fine-tuning?”
- “How did you evaluate style objectively?”
- “Would LoRA change this pipeline?”
Hints in Layers
Hint 1: Starting Point Define one canonical role-based prompt template.
Hint 2: Next Level Use balanced examples: witty but factual.
Hint 3: Technical Details
Pseudocode: render_messages -> tokenize -> mask_non_assistant_loss -> train.
Hint 4: Tools/Debugging Run rubric audits every checkpoint.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Instruction tuning | “NLP with Transformers” | Fine-tuning chapter |
| Evaluation in production | “Designing Machine Learning Systems” | Evaluation |
Common Pitfalls and Debugging
Problem 1: “Model sounds sarcastic but hallucinates facts”
- Why: Style examples dominate factual constraints.
- Fix: Add policy/factual corrective examples and re-balance dataset.
- Quick test: Re-score factuality slice after rebalance.
Definition of Done
- Chat format stable across prompts.
- Style score meets target threshold.
- Factuality and safety remain within gate.
- Exported model card includes style limitations.
Project 5: LoRA Adapter for a 7B Assistant
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 5: Pure Magic (Super Cool)
- Business Potential: 4. The “Open Core” Infrastructure
- Difficulty: Level 4: Expert
- Knowledge Area: PEFT for LLMs
- Software or Tool: PEFT, TRL, bitsandbytes
- Main Book: LoRA paper
What you will build: A domain adapter for a 7B chat model trained with LoRA.
Why it teaches fine-tuning: Shows large-model adaptation without full-parameter updates.
Core challenges you will face:
- Adapter config tuning -> maps to rank/alpha tradeoffs.
- Memory budgeting -> maps to realistic hardware constraints.
- Adapter artifact lifecycle -> maps to deployment governance.
Real World Outcome
$ mlft train project5-lora --config configs/p5.yaml
[run] base_model=llama-3.3-70b-instruct (adapter workflow)
[run] trainable_params=0.18%
[run] peak_gpu_mem=22.4GB
[eval] domain_win_rate_vs_base=+11.6%
[done] adapter saved: adapters/p5-lora
The Core Question You Are Answering
“How close can adapter-only tuning get to full fine-tuning quality for domain tasks?”
Concepts You Must Understand First
- Low-rank adaptation math.
- Target module selection.
- Adapter merge vs runtime composition.
Questions to Guide Your Design
- Which layers should receive adapters?
- What rank gives best quality-per-memory?
Thinking Exercise
Estimate memory budget for three adapter ranks before running training.
The Interview Questions They Will Ask
- “Why is LoRA parameter-efficient?”
- “When would full fine-tuning still be better?”
- “How do you version adapters safely?”
- “How do you benchmark adapter quality vs baseline?”
Hints in Layers
Hint 1: Starting Point Use standard attention-module adapter placement first.
Hint 2: Next Level Sweep small rank values before increasing complexity.
Hint 3: Technical Details
Pseudocode: inject_adapters -> freeze_base -> train_adapters_only.
Hint 4: Tools/Debugging Track trainable parameter count and peak memory per run.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| LoRA theory | LoRA paper | Full paper |
| Practical post-training | TRL/PEFT docs | Latest docs |
Common Pitfalls and Debugging
Problem 1: “Adapter trains but outputs stay generic”
- Why: Rank too low or wrong target modules.
- Fix: Increase rank modestly and revisit module selection.
- Quick test: Compare domain win rate before/after config change.
Definition of Done
- Adapter training completes under memory budget.
- Domain quality gain measured against base model.
- Adapter metadata (base/tokenizer/config) documented.
- Deployment path tested with adapter load.
Project 6: QLoRA Support Ticket Specialist
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 4. The “Open Core” Infrastructure
- Difficulty: Level 4: Expert
- Knowledge Area: Quantized PEFT
- Software or Tool: bitsandbytes, PEFT, TRL
- Main Book: QLoRA paper
What you will build: A low-memory adapter tuned for enterprise support ticket resolution.
Why it teaches fine-tuning: Demonstrates practical large-model tuning on commodity hardware.
Core challenges you will face:
- Quantization stability -> maps to numeric robustness.
- Noisy ticket data cleanup -> maps to data engineering.
- Structured response constraints -> maps to policy templates.
Real World Outcome
$ mlft train project6-qlora --config configs/p6.yaml
[run] base_precision=4bit nf4
[run] peak_gpu_mem=14.9GB
[eval] ticket_resolution_accuracy=0.87
[eval] structured_format_validity=0.96
[done] adapter: adapters/p6-qlora-support
The Core Question You Are Answering
“Can quantized adapter tuning deliver production-grade domain quality with limited GPU memory?”
Concepts You Must Understand First
- Quantization fundamentals and tradeoffs.
- Adapter tuning under low precision.
- Ticket taxonomy and quality annotation.
Questions to Guide Your Design
- Which ticket classes should be overrepresented for risk control?
- How strict should output schema validation be during training eval?
Thinking Exercise
Design a ticket-labeling rubric that separates factual correction, policy action, and escalation behavior.
The Interview Questions They Will Ask
- “Why use QLoRA instead of LoRA with full precision base?”
- “Where can low-precision training fail?”
- “How do you guarantee JSON/tool output reliability?”
- “How do you test for domain drift in support traffic?”
Hints in Layers
Hint 1: Starting Point Begin with clean, high-confidence tickets only.
Hint 2: Next Level Use strict template rendering and validation checks.
Hint 3: Technical Details
Pseudocode: quantized_base + adapter_train -> schema_validation_eval.
Hint 4: Tools/Debugging Log invalid-format rate per checkpoint.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| QLoRA method | QLoRA paper | Full paper |
| Production data quality | “Designing Machine Learning Systems” | Data quality chapters |
Common Pitfalls and Debugging
Problem 1: “High quality answers, poor schema validity”
- Why: Objective rewards content but not strict format.
- Fix: Add format-constrained examples and parser-based validation metric.
- Quick test: Recompute validity on held-out structured prompts.
Definition of Done
- Training fits memory budget with reproducible config.
- Accuracy and schema-validity targets both met.
- Domain error taxonomy documented.
- Adapter ready for staged rollout.
Project 7: DPO for Helpfulness vs Safety
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 3. The “Service & Support” Model
- Difficulty: Level 4: Expert
- Knowledge Area: Alignment
- Software or Tool: TRL DPO trainer
- Main Book: DPO paper and alignment resources
What you will build: A preference-optimized model improving helpfulness without increasing unsafe behavior.
Why it teaches fine-tuning: You learn pairwise alignment beyond imitation.
Core challenges you will face:
- Preference pair quality -> maps to rubric design.
- Reference policy anchoring -> maps to controlled optimization.
- Multi-metric gating -> maps to safe release.
Real World Outcome
$ mlft train project7-dpo --config configs/p7.yaml
[run] preference_pairs=52000
[eval] win_rate_vs_sft=0.63
[eval] factuality_delta=+0.02 safety_violations_delta=0
[done] aligned checkpoint: checkpoints/p7-dpo-best
The Core Question You Are Answering
“Can preference optimization improve response quality while holding safety risk flat or better?”
Concepts You Must Understand First
- Preference pair construction.
- DPO objective intuition.
- Safety hard-fail categories.
Questions to Guide Your Design
- Are your rejected responses realistic or trivial?
- Which safety classes should block release regardless of win rate?
Thinking Exercise
Build 20 close-call pairs and explain why chosen output wins in one sentence each.
The Interview Questions They Will Ask
- “How is DPO different from RLHF?”
- “What role does the reference model play?”
- “Why can win rate be misleading alone?”
- “How did you audit preference label quality?”
Hints in Layers
Hint 1: Starting Point Start with strong SFT checkpoint, then DPO.
Hint 2: Next Level Ensure preference pairs are policy-grounded.
Hint 3: Technical Details
Pseudocode: score(chosen,rejected) relative to reference -> optimize margin.
Hint 4: Tools/Debugging Track win rate, factuality, and safety in one dashboard.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Preference optimization | DPO paper | Full paper |
| ML evaluation systems | “Designing Machine Learning Systems” | Evaluation chapters |
Common Pitfalls and Debugging
Problem 1: “Win rate up, hallucinations up”
- Why: Preference labels overvalue style.
- Fix: Reweight rubric toward factual correctness.
- Quick test: Re-evaluate factuality subset before/after relabeling.
Definition of Done
- Win rate improves over SFT baseline.
- Safety violations do not increase.
- Factuality regression is zero or better.
- Preference data quality report included.
Project 8: ORPO on Synthetic Preference Pairs
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 2. The “Micro-SaaS / Pro Tool”
- Difficulty: Level 4: Expert
- Knowledge Area: Alignment Objectives
- Software or Tool: TRL ORPO trainer
- Main Book: ORPO paper
What you will build: A one-stage alignment workflow using ORPO with synthetic and human-reviewed preference pairs.
Why it teaches fine-tuning: Teaches objective design and synthetic-data governance.
Core challenges you will face:
- Synthetic pair quality filtering -> maps to data trustworthiness.
- One-stage objective tuning -> maps to stability vs simplicity.
- Policy rubric enforcement -> maps to real-world alignment.
Real World Outcome
$ mlft train project8-orpo --config configs/p8.yaml
[run] synthetic_pairs=90000 human_pairs=12000
[eval] policy_adherence=0.94 helpfulness_score=4.3/5
[eval] unsafe_output_rate=0.002
[done] checkpoint: checkpoints/p8-orpo
The Core Question You Are Answering
“Can a one-stage preference objective deliver strong alignment with manageable training complexity?”
Concepts You Must Understand First
- ORPO objective intuition.
- Synthetic data filtering strategies.
- Policy rubric consistency checks.
Questions to Guide Your Design
- What acceptance criteria should synthetic pairs meet?
- How do you monitor model drift toward verbosity hacks?
Thinking Exercise
Design a two-level filter for synthetic pairs: automatic validation then human spot-check.
The Interview Questions They Will Ask
- “Why use ORPO instead of DPO in this project?”
- “How did you ensure synthetic pairs were trustworthy?”
- “What failure signatures indicate objective mismatch?”
- “How would you blend human and synthetic preference data over time?”
Hints in Layers
Hint 1: Starting Point Start from a stable SFT checkpoint.
Hint 2: Next Level Filter synthetic pairs aggressively before training.
Hint 3: Technical Details
Pseudocode: generate_pairs -> filter_by_policy -> train_orpo -> evaluate_multi_gate.
Hint 4: Tools/Debugging Log acceptance/rejection reasons for synthetic pairs.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| ORPO method | ORPO paper | Full paper |
| Data quality operations | “Designing Machine Learning Systems” | Data and monitoring |
Common Pitfalls and Debugging
Problem 1: “Alignment gains vanish on real user prompts”
- Why: Synthetic data not representative.
- Fix: Increase human-reviewed and production-like prompts.
- Quick test: Evaluate on held-out real traffic replay set.
Definition of Done
- ORPO training converges with stable metrics.
- Human-reviewed eval confirms policy and helpfulness gains.
- Unsafe output rate below threshold.
- Synthetic data audit log produced.
Project 9: Tool-Calling JSON Instruction Tune
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: TypeScript
- Coolness Level: Level 3: Genuinely Clever
- Business Potential: 3. The “Service & Support” Model
- Difficulty: Level 3: Advanced
- Knowledge Area: Structured Generation
- Software or Tool: Transformers/TRL + JSON schema validators
- Main Book: Practical LLM engineering references
What you will build: An assistant that reliably emits schema-valid tool-call JSON payloads.
Why it teaches fine-tuning: Moves from fluent text to strict machine-actionable output.
Core challenges you will face:
- Schema conformance -> maps to structured output objectives.
- Fallback behavior -> maps to safe error handling.
- Injection resilience -> maps to alignment and safety.
Real World Outcome
$ mlft eval project9-json --checkpoint checkpoints/p9
[eval] schema_validity=0.982
[eval] tool_selection_accuracy=0.944
[eval] unsafe_tool_call_rate=0.000
[done] integration contract passed: contracts/tool_call_v1
The Core Question You Are Answering
“How do I fine-tune for deterministic structure, not just natural language quality?”
Concepts You Must Understand First
- Structured output schemas.
- Instruction hierarchy and system constraints.
- Parser-first evaluation.
Questions to Guide Your Design
- What should model do when required fields are missing?
- How do you penalize invalid schema outputs in evaluation?
Thinking Exercise
Create five adversarial prompts that attempt to force invalid JSON and define expected safe behavior.
The Interview Questions They Will Ask
- “How do you train for tool-call reliability?”
- “How do you handle partial or uncertain inputs?”
- “What metrics best capture structured output quality?”
- “How do you protect against prompt injection in tool contexts?”
Hints in Layers
Hint 1: Starting Point Use canonical JSON schema examples in training data.
Hint 2: Next Level Add explicit negative examples with corrected targets.
Hint 3: Technical Details
Pseudocode: generate -> parse_json -> validate_schema -> score.
Hint 4: Tools/Debugging Track per-field error rates, not only pass/fail.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| LLM system behavior | “Designing Machine Learning Systems” | Deployment and validation |
| Prompt/data templating | “NLP with Transformers” | Fine-tuning workflow |
Common Pitfalls and Debugging
Problem 1: “High semantic quality, low JSON validity”
- Why: Training objective underweights strict format.
- Fix: Increase schema-critical examples and parser-based gating.
- Quick test: Run schema validator on 1k sample outputs.
Definition of Done
- Schema validity exceeds threshold.
- Tool choice accuracy measured on held-out tasks.
- Injection-resilience test suite passes.
- Fallback policy documented.
Project 10: Multilingual Support Fine-Tune
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 3: Genuinely Clever
- Business Potential: 3. The “Service & Support” Model
- Difficulty: Level 3: Advanced
- Knowledge Area: Multilingual NLP
- Software or Tool: Transformers, language-ID tooling
- Main Book: Multilingual NLP references
What you will build: A support assistant fine-tuned for English, Spanish, and Portuguese queries.
Why it teaches fine-tuning: Forces distribution balancing and language-specific quality checks.
Core challenges you will face:
- Language imbalance -> maps to sampling strategy.
- Code-switching behavior -> maps to robust formatting.
- Policy consistency across languages -> maps to alignment fidelity.
Real World Outcome
$ mlft eval project10-multilingual --checkpoint checkpoints/p10
[eval] en_f1=0.91 es_f1=0.89 pt_f1=0.88
[eval] policy_adherence_all_langs=0.95
[eval] unwanted_language_switch_rate=0.03
[done] multilingual readiness report generated
The Core Question You Are Answering
“How do I adapt one model across languages without collapsing quality in low-resource subsets?”
Concepts You Must Understand First
- Balanced multilingual sampling.
- Language-specific evaluation slices.
- Cross-lingual transfer limits.
Questions to Guide Your Design
- How much oversampling is needed for lower-resource language slices?
- How do you detect mixed-language failure patterns?
Thinking Exercise
Design a balanced validation set with equal policy-critical prompts per language.
The Interview Questions They Will Ask
- “Why does multilingual fine-tuning often hurt one language while helping another?”
- “How did you measure policy consistency across languages?”
- “How do you handle code-switching prompts?”
- “Would separate adapters per language be better?”
Hints in Layers
Hint 1: Starting Point Start with balanced train/eval sampling.
Hint 2: Next Level Use language-specific error dashboards.
Hint 3: Technical Details
Pseudocode: for lang in [en,es,pt]: score(lang_specific_eval).
Hint 4: Tools/Debugging Add language-ID checks on outputs.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| NLP fine-tuning basics | “NLP with Transformers” | Data and training chapters |
| Production monitoring | “Designing Machine Learning Systems” | Monitoring |
Common Pitfalls and Debugging
Problem 1: “English dominates outputs”
- Why: Data ratio skew and implicit prior dominance.
- Fix: Rebalance sampling and enforce language-conditioned prompts.
- Quick test: Recompute per-language response-language accuracy.
Definition of Done
- Per-language quality targets met.
- Policy adherence stable across languages.
- Language-switch errors below threshold.
- Language-specific model card notes added.
Project 11: Vision-Language Receipt Understanding Adapter
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 3. The “Service & Support” Model
- Difficulty: Level 4: Expert
- Knowledge Area: Multimodal Fine-Tuning
- Software or Tool: VLM checkpoint + PEFT
- Main Book: Multimodal model docs and papers
What you will build: A multimodal adapter that extracts structured fields from receipt images.
Why it teaches fine-tuning: Extends adapter techniques to image-text tasks with structure constraints.
Core challenges you will face:
- OCR/noise handling -> maps to multimodal robustness.
- Field extraction consistency -> maps to schema alignment.
- Layout variance -> maps to domain generalization.
Real World Outcome
$ mlft eval project11-vlm --checkpoint checkpoints/p11
[eval] total_amount_exact_match=0.93
[eval] date_field_f1=0.91 vendor_f1=0.89
[eval] malformed_output_rate=0.01
[done] receipts extraction demo ready
The Core Question You Are Answering
“Can adapter tuning make a general vision-language model reliable for messy document extraction?”
Concepts You Must Understand First
- Vision-language input formatting.
- Structured extraction targets.
- Field-level evaluation metrics.
Questions to Guide Your Design
- Which fields require exact-match vs fuzzy metrics?
- How do you handle receipts with missing/ambiguous fields?
Thinking Exercise
Create an error taxonomy for extraction failures: OCR noise, layout mismatch, ambiguous currency, missing fields.
The Interview Questions They Will Ask
- “How is multimodal fine-tuning different from text-only fine-tuning?”
- “What metrics are useful for structured document extraction?”
- “How do you handle OCR uncertainty?”
- “How would you deploy this at scale with cost constraints?”
Hints in Layers
Hint 1: Starting Point Use a consistent extraction schema for all targets.
Hint 2: Next Level Add hard examples: low-light, skewed, partial receipts.
Hint 3: Technical Details
Pseudocode: image+prompt -> model -> parse_fields -> compare_to_gt.
Hint 4: Tools/Debugging Track per-field error rates and top failure templates.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Multimodal systems | Current VLM documentation/papers | Relevant sections |
| Evaluation operations | “Designing Machine Learning Systems” | Validation and monitoring |
Common Pitfalls and Debugging
Problem 1: “Great on clean scans, weak on phone photos”
- Why: Training data lacks capture-device diversity.
- Fix: Add realistic augmentations and device-varied samples.
- Quick test: Compare clean vs mobile-photo subset metrics.
Definition of Done
- Field-level metrics meet targets.
- Schema validity remains high.
- Robustness tested on noisy/cropped receipts.
- Deployment latency estimate documented.
Project 12: RAG Citation Discipline Fine-Tune
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 4: Hardcore Tech Flex
- Business Potential: 4. The “Open Core” Infrastructure
- Difficulty: Level 4: Expert
- Knowledge Area: Grounded Generation
- Software or Tool: RAG stack + fine-tuned generator
- Main Book: RAG and evaluation references
What you will build: A model tuned to answer only from provided context and cite supporting passages.
Why it teaches fine-tuning: Teaches groundedness constraints and anti-hallucination alignment.
Core challenges you will face:
- Citation format reliability -> maps to structured generation.
- Refusal under insufficient context -> maps to safety and policy.
- Faithfulness scoring -> maps to evaluation rigor.
Real World Outcome
$ mlft eval project12-rag-citations --checkpoint checkpoints/p12
[eval] answer_correctness=0.84
[eval] citation_validity=0.97
[eval] unsupported_claim_rate=0.015
[eval] correct_refusal_rate=0.93
[done] grounded QA policy gate passed
The Core Question You Are Answering
“How do I fine-tune a model to prefer abstention over hallucination when evidence is missing?”
Concepts You Must Understand First
- Grounded generation principles.
- Citation-aware formatting.
- Faithfulness and refusal metrics.
Questions to Guide Your Design
- How should model respond when retrieved evidence conflicts?
- Which unsupported-claim threshold is acceptable for release?
Thinking Exercise
Draft five “insufficient context” prompts and define ideal refusal responses.
The Interview Questions They Will Ask
- “How do you distinguish factuality from faithfulness to sources?”
- “How do you evaluate citation correctness automatically?”
- “What is the tradeoff between aggressive refusal and user utility?”
- “How would you adapt this for regulated documents?”
Hints in Layers
Hint 1: Starting Point Train with explicit cited-answer templates.
Hint 2: Next Level Include negative examples where unsupported claims are penalized.
Hint 3: Technical Details
Pseudocode: answer -> extract_citations -> verify_source_alignment.
Hint 4: Tools/Debugging Audit unsupported claims by domain slice.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Grounded LLM behavior | Current RAG references | Relevant chapters |
| Deployment risk controls | “Designing Machine Learning Systems” | Monitoring and rollback |
Common Pitfalls and Debugging
Problem 1: “Model cites sources but still hallucinates details”
- Why: Citation style learned without evidence binding.
- Fix: Train with explicit unsupported-claim penalties and refusal examples.
- Quick test: Run unsupported-claim checker on adversarial prompts.
Definition of Done
- Citation validity exceeds threshold.
- Unsupported-claim rate below policy cap.
- Correct refusal behavior measured.
- Release gate includes groundedness metrics.
Project 13: Teacher-Student Distillation Sprint
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: N/A
- Coolness Level: Level 3: Genuinely Clever
- Business Potential: 2. The “Micro-SaaS / Pro Tool”
- Difficulty: Level 3: Advanced
- Knowledge Area: Model Compression
- Software or Tool: Distillation workflow tools
- Main Book: Practical ML deployment references
What you will build: A compact student model that mimics a stronger fine-tuned teacher within latency budget.
Why it teaches fine-tuning: Shows post-training compression as part of deployment strategy.
Core challenges you will face:
- Teacher signal quality -> maps to distillation efficacy.
- Latency vs quality frontier -> maps to product economics.
- Regression auditing -> maps to responsible compression.
Real World Outcome
$ mlft distill project13 --teacher checkpoints/p7-dpo-best
[eval] teacher_score=0.88 student_score=0.84
[perf] p95_latency teacher=1250ms student=420ms
[cost] token_cost_reduction=58%
[done] student candidate: checkpoints/p13-student
The Core Question You Are Answering
“How much quality can I retain while aggressively reducing serving latency and cost?”
Concepts You Must Understand First
- Distillation objectives.
- Latency/throughput measurement.
- Regression suite design.
Questions to Guide Your Design
- Which tasks are non-negotiable in student model quality?
- What quality drop is acceptable given latency gains?
Thinking Exercise
Define a Pareto frontier acceptance rule between quality and p95 latency.
The Interview Questions They Will Ask
- “When is distillation better than quantization alone?”
- “How do you pick teacher checkpoints?”
- “How do you prevent student collapse on hard examples?”
- “What rollout strategy would you use for student model launch?”
Hints in Layers
Hint 1: Starting Point Use high-quality teacher outputs for diverse prompts.
Hint 2: Next Level Focus student training on high-value traffic slices.
Hint 3: Technical Details
Pseudocode: student learns from teacher logits/targets + ground truth.
Hint 4: Tools/Debugging Compare teacher/student error overlap.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Production tradeoffs | “Designing Machine Learning Systems” | Deployment economics |
| Fine-tuning pipeline context | “NLP with Transformers” | Model adaptation workflow |
Common Pitfalls and Debugging
Problem 1: “Student fast but brittle on edge cases”
- Why: Distillation data underrepresents hard prompts.
- Fix: Hard-example mining and targeted retraining.
- Quick test: Re-run edge-case subset and compare teacher-student gap.
Definition of Done
- Student meets minimum quality gate.
- Latency/cost improvement quantified.
- Edge-case regression documented.
- Rollout plan includes automatic fallback.
Project 14: Quantized Serving and Adapter Merge Benchmark
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: Go
- Coolness Level: Level 3: Genuinely Clever
- Business Potential: 4. The “Open Core” Infrastructure
- Difficulty: Level 3: Advanced
- Knowledge Area: Inference Operations
- Software or Tool: vLLM/TGI benchmarking stack
- Main Book: Systems and ML ops references
What you will build: A benchmark harness comparing base+adapter, merged adapter, and quantized deployment variants.
Why it teaches fine-tuning: Connects model adaptation choices to serving economics.
Core challenges you will face:
- Variant comparability -> maps to reproducible benchmarking.
- Latency/throughput/cost tradeoff -> maps to deployment decisions.
- Quality drift after quantization -> maps to release safety.
Real World Outcome
$ mlft bench project14 --suite serving_bench_v1
[bench] variant=base+adapter p95=780ms tok/s=112 quality=0.86
[bench] variant=merged p95=710ms tok/s=119 quality=0.86
[bench] variant=quantized p95=530ms tok/s=138 quality=0.83
[done] recommendation=merged_for_prod quantized_for_low_cost_tier
The Core Question You Are Answering
“Which deployment variant gives the best quality-latency-cost balance for my traffic profile?”
Concepts You Must Understand First
- Serving benchmark methodology.
- Quantization effects on quality.
- Release gate design across non-quality metrics.
Questions to Guide Your Design
- Which metric is the primary business constraint: p95 latency, cost, or quality?
- What quality degradation is acceptable for low-cost tiers?
Thinking Exercise
Define two service tiers (premium and budget) and assign model variant policy for each.
The Interview Questions They Will Ask
- “Why is one benchmark run not enough?”
- “How do you ensure benchmark reproducibility?”
- “How do you detect quality regressions after quantization?”
- “What traffic-based routing policy would you deploy?”
Hints in Layers
Hint 1: Starting Point Benchmark with fixed prompt set and concurrency profile.
Hint 2: Next Level Compare p50/p95 and tokens/sec together.
Hint 3: Technical Details
Pseudocode: for variant in variants: run_load_test -> score_quality -> summarize.
Hint 4: Tools/Debugging Pin runtime versions to avoid hidden benchmark drift.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| Systems performance mindset | “Computer Systems: A Programmer’s Perspective” | Performance sections |
| ML deployment economics | “Designing Machine Learning Systems” | Serving chapters |
Common Pitfalls and Debugging
Problem 1: “Benchmark says faster, production says slower”
- Why: Synthetic load differs from real prompt mix.
- Fix: Replay anonymized real traffic distribution.
- Quick test: Compare synthetic vs replay benchmark deltas.
Definition of Done
- Benchmark harness reproducible across runs.
- Quality-latency-cost table completed for all variants.
- Recommendation mapped to service tiers.
- Rollback candidate identified.
Project 15: Continuous Fine-Tuning with Drift Operations
- File: LEARN_ML_MODEL_FINETUNING.md
- Main Programming Language: Python
- Alternative Programming Languages: TypeScript, Go
- Coolness Level: Level 5: Pure Magic (Super Cool)
- Business Potential: 5. The “Industry Disruptor”
- Difficulty: Level 5: Master
- Knowledge Area: End-to-End ML Operations
- Software or Tool: Orchestration + evaluation + serving stack
- Main Book: Production ML system design references
What you will build: A full post-training lifecycle pipeline that detects drift, triggers retraining, validates releases, and canary-rolls updates.
Why it teaches fine-tuning: Integrates all prior projects into production reality.
Core challenges you will face:
- Drift signal design -> maps to monitoring science.
- Automated release gates -> maps to safe velocity.
- Incident rollback discipline -> maps to operational resilience.
Real World Outcome
$ mlft pipeline run project15
[monitor] drift_alert=topic_shift_high severity=medium
[retrain] candidate_checkpoint=checkpoints/p15-2026-02-11
[gate] quality=pass safety=pass latency=pass cost=pass
[deploy] canary=5% -> 25% -> 100%
[done] release p15-r42 promoted with full audit log
The Core Question You Are Answering
“How do I run fine-tuning as a controlled production system rather than a one-off experiment?”
Concepts You Must Understand First
- Drift detection signals and thresholds.
- Multi-metric release gates.
- Canary strategy and rollback automation.
Questions to Guide Your Design
- Which drift metrics should trigger retraining vs manual review?
- How do you prevent retraining on noisy or low-quality data?
Thinking Exercise
Design a weekly operations review template with sections: drift summary, model health, incidents, and retraining decisions.
The Interview Questions They Will Ask
- “What retraining trigger policy did you implement?”
- “How do you avoid model churn from noisy drift signals?”
- “What is your blast-radius strategy for bad releases?”
- “How do you tie model metrics to business KPIs?”
- “What governance artifacts are required for audits?”
Hints in Layers
Hint 1: Starting Point Implement monitoring first, automation second.
Hint 2: Next Level Use strict release gates before any canary traffic.
Hint 3: Technical Details
Pseudocode: detect_drift -> build_data_batch -> train_candidate -> gate -> canary -> promote/rollback.
Hint 4: Tools/Debugging Keep full lineage: dataset version, code commit, model config, eval artifact.
Books That Will Help
| Topic | Book | Chapter |
|---|---|---|
| ML lifecycle operations | “Designing Machine Learning Systems” | End-to-end lifecycle |
| Reliability mindset | SRE/ops references | Incident response sections |
Common Pitfalls and Debugging
Problem 1: “Automated retraining causes unstable quality”
- Why: Trigger thresholds too sensitive and data quality gates weak.
- Fix: Add minimum data quality score and human approval for medium/high-risk updates.
- Quick test: Replay last 90 days and count false-positive retraining triggers.
Definition of Done
- Drift metrics and thresholds implemented.
- Automated training candidate pipeline operational.
- Multi-metric release gate blocks bad checkpoints.
- Canary + rollback tested with simulated incident.
Project Comparison Table
| Project | Difficulty | Time | Depth of Understanding | Fun Factor |
|---|---|---|---|---|
| 1. Cats vs Dogs | Level 2 | Weekend | Medium | ★★★☆☆ |
| 2. Pneumonia X-Ray | Level 3 | Weekend | Medium-High | ★★★☆☆ |
| 3. Sentiment Analyzer | Level 2 | Weekend | Medium | ★★☆☆☆ |
| 4. Sarcastic Chatbot | Level 3 | 1 week | High | ★★★★☆ |
| 5. LoRA 7B Adapter | Level 4 | 1-2 weeks | High | ★★★★★ |
| 6. QLoRA Support | Level 4 | 1-2 weeks | High | ★★★★★ |
| 7. DPO Alignment | Level 4 | 2 weeks | Very High | ★★★★★ |
| 8. ORPO Alignment | Level 4 | 2 weeks | Very High | ★★★★☆ |
| 9. Tool-Call JSON | Level 3 | 1 week | High | ★★★★☆ |
| 10. Multilingual Support | Level 3 | 1-2 weeks | High | ★★★★☆ |
| 11. VLM Receipt | Level 4 | 2 weeks | Very High | ★★★★★ |
| 12. RAG Citation Tune | Level 4 | 2 weeks | Very High | ★★★★★ |
| 13. Distillation Sprint | Level 3 | 1 week | High | ★★★★☆ |
| 14. Serving Benchmark | Level 3 | 1 week | High | ★★★☆☆ |
| 15. Continuous Drift Ops | Level 5 | 2-3 weeks | Maximum | ★★★★★ |
Recommendation
If you are new to model fine-tuning: Start with Project 1, then Project 3, then Project 4.
If you are building LLM products now: Start with Project 5, Project 6, Project 9, and Project 14.
If you want alignment depth: Focus on Project 7, Project 8, and Project 12.
If you want production leadership skills: Complete Project 15 after doing at least Projects 5, 7, 9, and 14.
Final Overall Project: Policy-Safe Domain Assistant Platform
The Goal: Combine Projects 6, 7, 9, 12, 14, and 15 into one deployable assistant platform.
- Build domain adapter with QLoRA (Project 6).
- Align behavior with preference optimization (Project 7 or 8).
- Enforce tool-calling schema guarantees (Project 9).
- Add grounded citation policy for RAG contexts (Project 12).
- Benchmark serving variants and choose tier strategy (Project 14).
- Operate with drift-aware retraining and canary rollout (Project 15).
Success Criteria: Policy compliance, citation faithfulness, and schema validity stay within gates while p95 latency and cost meet business SLA.
From Learning to Production
| Your Project | Production Equivalent | Gap to Fill |
|---|---|---|
| Project 5/6 adapters | Multi-tenant adapter service | Model registry + tenancy controls |
| Project 7/8 alignment | Human preference ops pipeline | Ongoing annotation governance |
| Project 9 structured output | Tool orchestration gateway | Runtime guardrails and retries |
| Project 12 citation discipline | Enterprise grounded assistant | Retrieval quality + provenance storage |
| Project 14 benchmark | Capacity planning and routing | Real-traffic replay and autoscaling |
| Project 15 lifecycle | Full ML platform operations | Audit, approvals, and incident automation |
Summary
This learning path covers ML model fine-tuning through 15 hands-on projects, from transfer learning basics to continuous production operations.
| # | Project Name | Main Language | Difficulty | Time Estimate |
|---|---|---|---|---|
| 1 | Cats vs Dogs | Python | Level 2 | Weekend |
| 2 | Pneumonia X-Ray | Python | Level 3 | Weekend |
| 3 | Sentiment Analyzer | Python | Level 2 | Weekend |
| 4 | Sarcastic Chatbot | Python | Level 3 | 1 week |
| 5 | LoRA 7B Adapter | Python | Level 4 | 1-2 weeks |
| 6 | QLoRA Support | Python | Level 4 | 1-2 weeks |
| 7 | DPO Alignment | Python | Level 4 | 2 weeks |
| 8 | ORPO Alignment | Python | Level 4 | 2 weeks |
| 9 | Tool-Call JSON | Python | Level 3 | 1 week |
| 10 | Multilingual Support | Python | Level 3 | 1-2 weeks |
| 11 | VLM Receipt | Python | Level 4 | 2 weeks |
| 12 | RAG Citation Tune | Python | Level 4 | 2 weeks |
| 13 | Distillation Sprint | Python | Level 3 | 1 week |
| 14 | Serving Benchmark | Python | Level 3 | 1 week |
| 15 | Continuous Drift Ops | Python | Level 5 | 2-3 weeks |
Expected Outcomes
- You can choose and implement appropriate post-training methods for specific constraints.
- You can evaluate and release fine-tuned models using multi-metric safety gates.
- You can operate continuous fine-tuning pipelines with measurable drift and rollback controls.
Additional Resources and References
Standards, Specs, and Official Docs
- Hugging Face TRL docs: https://huggingface.co/docs/trl/index
- OpenAI fine-tuning guide: https://platform.openai.com/docs/guides/fine-tuning
Core Papers and Technical Reports
- LoRA (2021): https://arxiv.org/abs/2106.09685
- QLoRA (2023): https://arxiv.org/abs/2305.14314
- DoRA (2024): https://arxiv.org/abs/2402.09353
- DPO (NeurIPS 2023): https://papers.nips.cc/paper_files/paper/2023/hash/a85b405ed65c6477a4fe8302b10babf7-Abstract-Conference.html
- ORPO (2024): https://arxiv.org/abs/2403.07691
- KTO (2024): https://arxiv.org/abs/2402.01306
- DeepSeekMath / GRPO usage (2024): https://arxiv.org/abs/2402.03300
- DeepSeek-R1 (2025): https://arxiv.org/abs/2501.12948
Current Model Families for Fine-Tuning Research
- Llama 3.3 model card: https://huggingface.co/meta-llama/Llama-3.3-70B-Instruct
- Qwen2.5 model card: https://huggingface.co/Qwen/Qwen2.5-72B-Instruct
- Mistral Small 3.1: https://huggingface.co/mistralai/Mistral-Small-3.1-24B-Instruct-2503
- Gemma 2 model card: https://huggingface.co/google/gemma-2-9b-it
- Phi-4 model card: https://huggingface.co/microsoft/Phi-4
Industry Adoption Context
- GitHub Octoverse 2024 AI section: https://github.blog/news-insights/octoverse/octoverse-2024/#ai