The diagnosis problem arises when a system's actual behavior contradicts the expected behavior, thereby exhibiting symptoms (a collection of conflict sets). System diagnosis is then the task of identifying faulty components that are responsible for anomalous behavior. To solve the diagnosis problem, the present invention describes a method for finding the minimal set of faulty components (minimal diagnosis set) that explain the conflict sets. The method includes acts of creating a matrix of the collection of conflict sets, and then creating nodes from the matrix such that each node is a node in a search tree. A determination is made as to whether each node is a leaf node or has any children nodes. If any given node has children nodes, then the node is split until all nodes are leaf nodes. Information gathered from the leaf nodes is used to determine the minimal diagnosis set.