This document reviews a computer management system which uses as its substructure an outcome-based approach to curriculum development. It details the philosophical and pedagogical bases for the adoption of such a computer-managed instruction system and offers a wide range of practical suggestions for computer uses in education. The philosophical constructs underlining the goals of this program are consistent with the concepts of Outcome Based Education instructional delivery systems, which define curriculum development by instructional objectives and which dictate that the system be student centered, simple but powerful, decentralized, and accessible. This computer-managed instruction system provides for diagnosis and summative post-testing through application of an item bank, fashioned in linear vertical sequence through Rasch item response scaling and coded by format and complexity. In this way, the systems are used to evaluate student progress and instructional programs and provide indicators for student grouping and placement. The system also has the capability to prescribe an appropriate correction for students by incorporating a resource file coded to higher order thinking skills, learning styles, and instructional pedagogy as defined by Madeline Hunter. Recordkeeping is an important function of the system, as is the parent/school partnership program. IBM PCXT computers have been placed in each school site; they present many advantages to users. Detailed lists of systems operations, including diagnosis, prescription, reporting, and record keeping functions, conclude the document. (IW)