Applications for on-line data reconciliation and optimization must be efficient and numerically robust. The models in these applications are rarely changed and the same optimization problem is solved thousands of times with only minor changes in the parameters. This paper describes a suitable modeling framework for this type of applications that, with the aim of simplifying the creation of new models, makes the application robust and avoids numerical difficulties. The model is based on a unit model structure where first-order derivatives, scaling and initial values are properties of the unit model. A new scaling procedure is proposed based on equation and variable pairing. The modeling framework and the use of the proposed scaling procedure are demonstrated in two case studies, case I is simulation of a simple pipe model, case 2 is simulation, data reconciliation and optimization of a flash process. (C) 2007 Elsevier Ltd. All rights reserved.