Based on “Take Xiang and Compare Lei” thinking of traditional Chinese medicine, this paper takes the five elements as the principle of division to functional analogy the human body systems and enterprise systems. In accordance with medical consultation process of inspection，listening, inquiry and pulsetaking, combined with modern analytical tools of management such as environmental analysis, financial analysis, the study designs a series of indicators for enterprise diagnosis and uses the principle of fuzzy to assess the capacity and diagnose the healthy level of enterprises.