As a kind of distributed energy system, the co-generation system based Diesel engine using after-treatment device was devised for its environmental friendly and economic qualities. It is utilized in that the electric power is produced by the generator connected to the Diesel engine, and waste heat is recovered from both the exhaust gases and the engine itself by the finned tube and shell & tube heat exchangers. An after-treatment device composed ceramic heater and DOC(Diesel Oxidation Catalyst) is installed at the engine outlet in order to completely reignite the unburned fuel from the Diesel engine. In this study, mutual relation of each experimental condition was derived through minimum number of experiment using Taguchi Design and ANOVA recently used in the various fields. It is found that the total efficiency (thermal efficiency plus electric power generation efficiency) of this system reaches maximum 94.4% which is approximately higher than that of the typical diesel engine exhaust heat recovery system.