Slicing a model in-game

I am looking for a way to slice models during runtime. Much like the "Detonator" plug-in might do, however since it lacks support for Iphone I need an optimal way of doing this. I have thought of a couple of ways of doing this, possibly:

  • slicing/detaching the model in 3ds max with a realistic number of slices, and splitting them when necessary (ie. explosion etc), which is a pretty manual process, or
  • grabbing the closest vertex group to a certain point/slice, and manually

    creating faces in between the connecting vertices (although I lack
    the knowledge to do so)

Is this the right way to go about this? (ie. optimal for iphone/android)

The best way to do it, is as you said, doing it with the 3DS Max modeling... And you can destroy/instantiate the "new" model haha.