Designed as a resource for administrators and faculty considering the implementation of competency-based vocational education (CBVE), this report addresses the theory and practice of CBVE, the pros and cons of a competency-based approach to instructional organization and delivery, and concerns about CBVE's appropriateness in Hawaii. After introducing the historical antecedents of CBVE, the first section defines the concept; enumerates the characteristics of an individualized, self-paced, open-entry/open-exit, competency-based program; and discusses the instructor's role in CBVE. The second section describes the CBVE programs offered by Central Community College (Nebraska), South Oklahoma City Junior College, the Employment and Training Office (Hawaii), and Hennepin Technical Institute (Minnesota). The advantages claimed for CBVE are discussed in the third section, along with related potential problems and the findings of available research on the method's effectiveness. After warning of the unwiseness of a total commitment to wholly individualized CBVE in Hawaii at this time, the fourth section identifies the concepts and procedures that can be borrowed from the CBVE model to improve instruction. This section explores myths about CBVE, offers suggestions for developing a CBVE course or program, and reviews the procedural modifications necessary to implement such courses. The report concludes with a cautious, positive assessment of CBVE's potential in Hawaii. (AYC)