Memory elements are grouped together (according to their associations) into chunks and stored in long term memory.
Long term memory is a seemingly limitless network of interconnected elements that contain our life experiences and skills.
Short Term Memory contains the elements that are in our conscious thought and is the gateway (via rehearsal) to long term memory (for example when given a telephone number to remember we must repeat it again and again to have any chance of placing it in long term memory).
Two other elements of the cognitive model not depicted on this illustration are expert behaviour and analogies. Due to time considerations I won't cover expert behaviour in this presentation but it is mentioned in the paper. However, I will cover analogies in more detail later.