The document discusses techniques for modularizing source code into separate files when developing large programs. It recommends splitting source code into multiple .c and .h files with each function defined in its own .c file and declared in a corresponding .h file. Header files should include function prototypes and extern declarations. Conditional compilation with #ifndef and #define is used to prevent header files from being included multiple times. This modular approach makes the code easier to maintain, compile and work on collaboratively.