Purdue University's participation as a fund associate in National Project III (NP III) for elevating the importance of teaching has its origins in a flexible and diagnostic instructional evaluation system called "CAFETERIA." CAFETERIA services include test development, scoring, and analysis; social surveys on topics of importance in education; assistance in behavioral research and statistical analysis; operation of an instructional grant program; and evaluation of instruction or of educational programs. Local NPIII activities include the continuation of CAFETERIA services to faculty and use of the system by other independent institutions. It is recommended that institutions deciding to implement similar services should operate initially on a limited or pilot basis. Several studies conducted using CAFETERIA data are described. Other NPIII activities include report preparation, participation in colloquia on instruction and evaluation, and aid to other schools in establishing pilot trials of CAFETERIA services. Chances of institutional success in implementing similar evaluation programs are best when there is broad institutional representation in decisions to implement such programs. Evaluation services should be provided directly and in confidence to individual faculty. A first priority need for the future is to achieve a better balance between administrative and diagnostic use of ratings. Appended are a sample of instructor reports; issues of the instructional memo series, "Trends in Learning and Teaching," containing information on the CAFETERIA system; items from faculty evaluation questionnaires; and papers on faculty evaluation and the CAFETERIA model. (SW)