An "educational utility" providing a cost effective educational delivery system using both management science and technology has been designed. Researchers postulated requirements for a learning system, developed a self-instructional system based on them, and implemented a pilot system. The system, Audiographic Learning Facility (ALF), consists of a Memory for storing and transmitting materials to learners, guided by a Preceptor. The learner exercises on-line control and other control by interposing a human tutor between himself and Preceptor. Scheduled and on-demand modes are available to groups or individuals. The semiotic content of Memory has been defined, a model of the self-instructional process developed, units of learning materials specified, Preceptor elements identified, and a physical facility implemented. Ithas been found that: 1) the learning units are superior to live instruction; 2) an index to structure and content can be devised; 3) self-diagnosis testing and revision are feasible; 4) the system is economical; and 5) students and teacher reaction is favorable. Given this, one can perceive a self-instructional system involving a vendor supplying learning systems, a tutor guiding learners, and a learner who interacts with the vendor's system. (LB)