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Today, the DMS plays a very important role. Its one of main problems is how to locate and process fault. This paper introduces three development phases of DMS about the fault processing, and analyses the methods of the fault procession and fault isolation and fault restoration. The early two methods are depending on development of hardware, so they are limited. The paper gives a detailed study for one heuristic algorithm that is based on the FTU's fault location. After working in some projects, the result indicates that method was accurate, fast and feasible.