THE PURPOSE OF THE PROJECT WAS TO APPLY CURRENT KNOWLEDGE, METHODS, AND TECHNIQUES IN INDUSTRIAL DESIGN AND PRODUCT DEVELOPMENT TO REHABILITATING THE HANDICAPPED BY USING THE LABOR FORCE AVAILABLE IN SHELTERED WORKSHOPS AND HOMEBOUND PROGRAMS. DEMONSTRATION PROGRAMS WERE ESTABLISHED AS TASK FORCES IN CHICAGO, NEW YORK, AND LOS ANGELES WITH THE HELP OF VOLUNTEER SPECIALISTS IN INDUSTRIAL DESIGN, PRODUCT ENGINEERING, MARKET RESEARCH, BUSINESS MANAGEMENT, AND RETAILING. SOME OF THE PROBLEMS ENCOUNTERED WERE (1) MANY DESIGNS WERE MORE ADAPTABLE TO MASS MACHINE THAN TO THE PROJECT PRODUCTION, AND MANY LACKED SUFFICIENT MARKETING APPEAL, (2) SOME ITEMS WERE TOO SEASONAL IN APPEAL, (3) THE WORKSHOP DIRECTORS WERE NOT ALWAYS ABLE TO EXPERIMENT WITH NEW DESIGNS, (4) THE HOMEBOUND PROGRAMS WERE NOT ALWAYS ABLE TO SUPPLY ENOUGH SKILLED WORKERS FOR QUANTITY AND QUALITY PRODUCTION, (5) MANY WORKSHOPS LACKED NECESSARY MACHINERY, AND (6) WORKSHOP DIRECTORS TENDED TO RESIST NEW OR ADDITIONAL RESPONSIBILITIES. DESPITE THE PROBLEMS, THE WORKSHOPS IN EACH CITY ADDED NEW PRODUCTS, PRODUCTS WERE PRODUCED AND SOLD, AND THE MACHINERY WAS ALTERED FOR USE BY THE HANDICAPPED. RECOMMENDATIONS CONCERNED FUNDING FOR A LONGER PERIOD OF TIME, REORGANIZING THE GOVERNING STRUCTURE, ESTABLISHING LABORATORY SHOPS, ESTABLISHING GEOGRAPHICALLY CONVENIENT CENTERS FOR PRODUCING AND MARKETING THE ITEMS AND PURCHASING RAW MATERIALS, AND MARKETING ON A NATIONWIDE BASIS AIMED AT DIFFERENT MARKETS SUCH AS GIFT, SOUVENIR, INTERIOR DESIGN, AND BOUTIQUE. (MM)