How to design a circuit with a 7-segment display for shaft position

[novrisa]

Homework Statement

hi...
i have an assignment to make a circuit like picture below, but i don't know how to design the circuit and what parts to make this circuit?? the 7 segment display shows the angular position of the shaft..
does anyone can help me to make this circuit and give me the description the part we use?
thanks...

Homework Equations

The Attempt at a Solution

 

[berkeman]

Tell us what you do know. Start with the 7-segment display. Which one are you using in this lab? What type of encoder is available? Is it optical or wheel-based like a mouse?