When designing model-based fault-diagnostic systems, the use of consistency relations (also called e.g. parity relations) is a common choice. Different consistency relations are sensitive to different subsets of faults, and thereby isolation can be achieved. This report presents an algorithm for finding a small set of submodels that can be used to derive consistency relations with highest possible diagnosis capability. The algorithm handles differential-algebraic models and is based on graph theoretical reasoning about the structure of the model. An important step towards finding these submodels, and therefore also towards finding consistency relations, is to find all minimal structurally singular (MSS) sets of equations. These sets charact...