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CCM is a classical faulty diagnostic method for analog circuit. The CCM matrixes show the connection between components of the circuits, and form the model for faulty diagnosis. The CCM can apply to a lot of domain due to its convenience in application of computer. Based on the CCM method, this paper presents a new algorithm for hierarchical analog circuit in sensitivity analysis and faulty diagnosis. The process is to build the hierarchical models for the circuits, and according to the sensitivity analysis to find the optimizational CCM diagnostic equations for the fault diagnosis. This algorithm can optimize the traditional CCM, and improve the efficiency of faulty diagnosis. The experiments prove this method can improve the efficiency of diagnosis obviously.