The connection between group structure and pipeline design seems like it merits a lot more attention than it gets. It’s not too hard to show that in a pipeline like the one to the right, the induced monoid of M1 must be a homomorphic image of the composite state machine. This immediately brings in the limiting factors of simple groups.
KR theory is too vague though. For example, I’d like to know something about the relationship of M and M’ in the case that the induced monoids are isomorphic. They definitely do not have to be the same, but seems like they should be similar enough so that changing the output map would equalize.