The document discusses structured design methodology. It begins by explaining program structure and structure charts, which graphically represent the structure of a program using boxes for modules and arrows for connections between modules. It then covers the steps in structured design, which include drawing a data flow diagram to capture system data flows, identifying the most abstract inputs and outputs, and performing first level factoring to break the system into input, output, and transform modules based on the data flow diagram. The goal is to specify functional modules and connections that result in low coupling and high cohesion.