The problem of major concern to the Physics Education Evaluation Project (P.E.E.P.) involved the improvement of university physics teaching and learning. The present paper describes instruments and procedures developed for systematic formative evaluation of physics lectures. The data was drawn from two sections of a first year university physics course. Guided by Stake's evaluation framework, descriptive data about the lecture environment was collected and analyzed. At formative evaluation sessions immediately following the lecture, the instructor and an evaluator-observer processed the data and suggested improvements for subsequent lectures. The techniques are foreseen as potentially useful for improving teaching and learning in other lecture situations. (Author)