In the fields of synthesis and verification of VLSI circuits, sequential op
timisation has attracted increasing interest due to the time, area and powe
r constraints of modern devices. For example, state minimisation aims to re
duce the number of states of a sequential circuit, optimising its represent
ation. The need to handle large state sets makes implicit methods, based on
binary decision diagrams and symbolic traversal techniques, quite appealin
g. Nevertheless, implicit techniques have limitations, and two improvements
to standard methods are proposed to deal with larger circuits. First, the
degree of freedom offered by don't care sets is exploited to enhance the st
ate-of-the-art approach using cofactor-based techniques. Internal steps of
the process are simpler and faster, although very large problems cannot be
dealt with. Secondly, partitioning and approximation are used. The search s
pace is pruned by constraining it to well suited subspaces. To this purpose
, the concepts of underestimation of equivalence classes, and of non-minima
l reduction are introduced. This leads to major simplifications and is quit
e effective in dealing with large problems and improving efficiency.