This paper discusses and describes an industry-based process for the design and development of criterion-referenced tests in vocational-technical subject areas to support vocational program evaluations. The following topics are covered in the paper: (1) use of criterion-referenced tests; (2) test design; (3) preparation of test materials; and (4) validation of test materials. Guidelines are provided in each of these areas for the reader to follow in developing and validating criterion-referenced tests. (KC)