The purpose of this paper is to provide an algorithm in which the procedure of constructing a superstate transition matrix for trellis codes is reduced and, as a result, make it easier to evaluate the performance of a TCM scheme when the generalized transfer function method is used. In this paper, an algorithm for constructing a superstate transition matrix and an algorithm for reducing the matrix easily are addressed and applied to an MTCM scheme as an example. It is shown that the algorithm is very useflul for trellis codes with a large number of states and/or parallel transitions.