Abstract: An artificial intelligence design and qualitative modelling tool is disclosed for creating computer models and simulating therein continuous activities, functions and/or behavior using developed discrete event techniquers. Conveniently, the tool is organized in four modules: library design module, model construction module, simulation module, and experimentation and analysis. The library design module supports the building of library knowledge including component classes and elements pertinent to a particular domain of continuous activities, functions and behavior being modelled. The continuous behavior is defined discretely with respect to invocation statements, effect statements and time delays. The functionality of the components is defined in terms of variable cluster instances, independent processes and modes, further defined in terms of mode transition processes and mode dependent processes. Model construction utilizes the hierarchy of libraries and connects them with appropriate relations.