The document discusses criteria for modularization in software design. It defines modules as named entities that can contain instructions, processing logic, and data structures. Modularization aims to minimize coupling between modules and maximize cohesion within modules. Strong coupling like content coupling is undesirable, while data and stamp coupling are more desirable. Cohesion within a module is best when elements are functionally related to a single function. Additional criteria for modularization include hiding design decisions and isolating machine dependencies.