A system and method are provided for generating minimal cut-sets for highly integrated large systems. The method includes receiving a system model (102) and a scenario (104), and obtaining a dependency array (300) from the system model (102) according to the scenario, with the dependency array (300) including at least one case (302). The method includes selecting a case (302) in the dependency array (300). The method includes querying a cut-set repository (110) to determine if a cut-set for a component (200) in the case (302) is already stored, and retrieving said cut-set; and if a cut-set is not stored, generating the minimal cut-set for the component (200). And the method includes computing a final cut-set list (112) by expanding the dependency array (300) using the cut-set for the component (200). The method improves the efficiency of cut-set generation applied to manufactured systems with great number of components.