Configuration knowledge is a dynamic information set which is evolving and enriching on and on. Product model is the instantiation of configuration knowledge and the evolution of configuration knowledge is the essential inherent reason which causes the models dynamic evolvement. In the traditional model evolvement process, the inheriting and reuse of configuration knowledge was always ignored. Aim at solving the above problem, the multistage rhombus evolution mode of configuration knowledge is discussed in this paper. The product model based on configuration knowledge is put forward in different levels to achieve the models dynamic evolvement and automatic upgrading. The evolving configuration knowledge drives the product model to evolve directly according to the rule of up-layer evolvement. Furthermore, a new configuration knowledge reuse and optimization technology is presented to inheriting and reuse the foregone configuration knowledge in the course of model evolvement. At last, the air separation equipment which is related with the project is taken as an example to illuminate that the presented model evolvement and configuration knowledge reuse technology are validity and practical.