That is exactly what I menat by the phrase. There are variousl interpretations, of course. Some guys (myself included) organize by system components the way you do, with perhaps some additional "modules" specifically for alarm handling, data conversion, etc.
Other guys create modules for reading input data, writing all outputs, all control loops, and so on.
It really doesn't matter as long as the grouping is logical, consistent, and properly commented.
My intent was to simply encourage dividing the program into sections or stages that can be solved abnd de-bugged more or less in separate chunks - you can't create the entire program in your head in one step. In some cases the chunks are subroutines, in some cases they are enabled by master control relays, and in some cases the related rungs of logic are simply kept together in the program for convenience and simplicity. Again, it isn't important as long as you properly comment so anyone can follow the logic.
