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In product design process, Cost reduction is a complex solution procedure based on knowledge reasoning. Scientific knowledge representation is the basis of the logical consequence. Begin with expatiating the components and characteristic of the whole lifecycle cost of mechanical product, this paper analyses the characteristic of cost reduction knowledge, on which basis, it presents the frame knowledge representation of cost reduction. In this system, entity type, slot and aspect are layered express the cost reduction knowledge. At last, it concretely expounds how to realize the framework-based knowledge representation in database.