Here's the link to Bob Blosl's site in case you wanted to peruse it.
http://bloslspoutlryfarm.tripod.com/id60.html
Here's what I have copied from some stuff that he had written on this issue:
Basics of Rotational Line Breeding in chickens
Using this method you can indefinitely breed a line of chickens without introducing new blood.
You need 4 "clans" minimum, for simplicity sake here I will assign each one a color: Red, Blue, White, Green. Each clan needs at least one male, and anywhere from one to ten hens depending on your needs. It is nice to have a back-up male of each clan in case of illness or other unexpected loss, but not needed.
Mark your birds with colored leg bands and when it's time to breed and hatch divide them by color for year one. Red male with Red Female, Blue with Blue and so on and so on. When the chicks hatch, find a way to mark them so you know what "clan" they came from. (nail polish works on chicks and then colored leg bands as they get older)
Year two, pick your best breeders that have the qualities you want (this is another discussion) and put the hens in their pens. Now put the Red males in the with the Blue hens, the Blue Males in with the White hens, and the White Males in with the Green Hens, Green males in with Red hens. Mark the chicks with the "clan" color of the hens.
Year three, select your breeders. Red males go with White hens, Blue males with Green Hens, White males with Red hens, Green males with Blue hens.
Again, mark the offspring with the color of the hens.
Repeat this every year, always moving the males one pen down the line, and always marking the chicks with the "clan" color of the hens.
Most people start out with birds that come from one flock - usually brothers and sisters - and then they set up their breeding pens. It isn't often that you are going to find a breeder that is keeping large number of birds to sell for breeding that are of different ages and not so close in familial relationship to each other. If they did that, they would be feeding many birds and require a LOT of space. Generally when you get birds, what is available is going to be what has hatched from their current breeding pens and would be considered brothers and sisters.
From what I've found personally, and what I've been told by others, poultry seem to tolerate more *inbreeding* than other types of animals before you start to see problems related to too much inbreeding. So worrying about trying to get multiple breeding groups from a bunch of different folks isn't necessary. And in fact, I would not recommend it unless you plan to breed each strain (bloodline) by themselves for several years, so you can get acquainted with their quirks, before you even attempt to cross the bloodlines with each other. It's better to get to know what the gene mix in each bloodline has before you start trying to mix bloodlines and become sorely disappointed that what you saw in the birds is not what came out in the offspring. We still occasionally get surprised by traits coming out in a hatch group that was not seen in their parents - it's just a crap shoot sometimes of how that DNA ladder gets put together.
We have more than one old bloodline and within our bloodlines, we breed from 3 males in order to try to keep as many genetics in the mix as possible, since we have birds that are not often seen, and thus most flocks come from one main source person in this country. And we see differences in the hatch groups by doing this, even though the original three breeding cocks were brothers. Even when breeding different cocks to the same hens, we can sometimes see the differences that each cock brings to his offspring. So far we have not attempted to intermingle the bloodlines, but we may do it someday to see what happens. But right now, we're doing fine with keeping mating within the same bloodline.
Some folks don't worry about trying to do any type of rotational/line breeding. I think it is Dragon Lady on here that mentioned a few years ago that she simply breeds "best to best" and doesn't pay much attention to relationships and line breeding guidelines. And she is well thought of as a breeder with some lovely birds.
Don't try to over-think things. When people first start out, they are so worried about screwing up that they get stuck on nit picky little points that really don't make that much difference (been there done that). Reality is that things are not always going to work out the way that you plan, but those instances can give you far more education about what you need to do with your birds, than trying to do everything *just so* and follow some strict, but often arbitrary, guidelines for poultry breeding.
As far as monitoring individual egg production, you can try the trap nesting route if you have time to let them out of their traps every time they get into the nest box. But trying to keep each hen isolated is not going to be fun for you or for them. When you keep just a few hens in each pen, you can get a good idea of what the laying production is like, and then if needed, you can always take a hen out of the mix if you REALLY need to have that one particular hen's production written down to every last decimal point. But I've found that really isn't necessary.
Keep things simple - you have enough work just trying to evaluate your birds to whatever standard you're breeding to and trying to keep such tight control on things is only apt to frustrate you and your birds.