DT/PI is discussed in the good book "Developing Math Talent"
by Susan Assouline and Ann Lupkowski-Shoplik.

http://www.insidehighered.com/views...-based-learning-traditional-age-students
A Faustian Bargain?
By William G. Durden
Insider Higher Education
October 22, 2013

Quote
Several decades ago – long before the level of technological sophistication we experience today -- I was part of a movement begun by the late Julian Stanley, a psychology professor, and the Johns Hopkins University Center for Talented Youth (CTY) to save academically talented youth from boredom in the schools. The most controversial instrument to rescue them was a pedagogical practice called, rather prosaically, "Diagnostic Testing Followed by Prescriptive Instruction" or, shorthand, “DT>PI.” It was principally applied to the pre-collegiate mathematics curriculum and relied on just a few key assumptions and practices:

1. Students already know something about a subject before they formally study it.
2. Test students before a course begins and then just instruct them on what they don’t know.
3. Test students again when you as the instructor and they as learners believe they have competency in a subject.
4. Move immediately to the next level of instruction.

The DT>PI model was placed in a more generous context with the adaptation of Professor Hal Robertson’s (University of Washington) notion of the Optimal Match. Simply stated, pace and level of instruction should match optimally an individual student’s assessed abilities — with the caveat that those accessing that talent would always try to stretch a student beyond his comfort zone. The Optimal Match theoretically could apply to all students at any level of education.

When I used to speak publicly in a wide variety of settings — at colleges and universities, community colleges, schools, education association meetings, parent gatherings -- about what I thought to be the commonsensical notions of DT>PI and the Optimal Match, the reactions were pronounced and fiercely negative. My colleagues and I were accused of presenting educators with the dissolution of the structured classroom as we knew it then; forcing students unjustifiably to proceed educationally without sufficient instructional guidance; destroying the communal, cooperative imperative of an American education; and, producing social misfits because students would finish academic coursework before the schedule established (rather arbitrarily, I might add) by educational professionals for all students of one age at one time. Parents joined often with educators to decry such imagined alienation and damage to a child’s personality.

And then there was a change in 2013.

There are now two closely related pedagogies -- adaptive learning and competency-based learning -- that are embraced by a growing number in higher education as a viable component of educational reform.