This paper investigates the use of a formal conceptual framework for t
he conceptualization of devices' structure and function. The objective
s are to support reusability of knowledge across a variety of problem-
solving tasks and flexibility in reasoning. The paper conjectures that
to meet these objectives, a conceptual formalism must provide both co
ntext-dependent and context-independent representations of the represe
nted aspects and it must separate between these representations cleanl
y. Then, it investigates how the PHOS conceptual formalism can satisfy
the above-mentioned requirements. PHOS utilizes a set of concept-form
ing primitives with formal properties and emphasizes the content rathe
r than the form of the representation. The paper shows how concepts ca
n be utilized during simulation and fault diagnosis, and concludes wit
h an agenda for future work.