Some results on special types of semigroups of transformations of a set (including permutation groups) are developed and combined with the fundamental results of Paull and Unger on state minimization of incompletely specified sequential machines to obtain some properties of the transformation semigroup of such a machine which are preserved in all minimum state machines (strong preservation), or in at least one (weak preservation) minimum state machine. The principal results are that for permutation machines (those whose states are permuted by every input) there is strong preservation and for simple machines (those whose semigroups have no proper ideals) there is weak preservation. A number of further properties of permutation machines in th...