The purpose of the study is to develop an index for basic management diagnosis of domestic industrial crafts companies. After the verification processes aimed at experts working in industrial crafts companies, the index of basic management diagnosis that has been researched and developed so far was turned out to be inappropriate to investigate the management of industrial crafts companies, in which the organized management system is not equipped due to their small-scale business environment. It is because the current index of management diagnosis was designed for diagnosis from the functional perspective. Therefore, in this study, the new index of management diagnosis was developed in order to diagnose the management of industrial crafts companies from the process perspective. This index is divided into three elements of Plan, Do, and See, which represents the management process cycle with focus on activities of industrial crafts companies. In addition, through literature study and Focus Group Interview (FGI) based on this index, detailed aspects and items of diagnosis, and checklists were emerged. This index of management is designed for the basic management diagnosis of industrial crafts, and it is possible to figure out management problems from diverse perspectives. For further research, the effectiveness of the index of management should be verified through diagnosing the management of industrial crafts companies and grasping management problems from varied perspectives.