Extract from the B737MRG pilot guide (updated March 2010)

Engine Failure Diagnosis

OVERHEAT NNC [Engine Overheat]

FIRE WARNING OVERHEAT light remains illuminated

Yes Yes
IF NNC [Engine Fire] IF
No No

N1 or N2 zero RPM NNC [One Engine Inoperative Landing]

or airframe vibrations

Yes FAULT light illuminated NNC [Eng. Fuel Leak]

IF
[Loss of System A/B]
No Yes
IF NNC [Engine Separation]
No
N1, N2 or EGT approaching NNC [Engine Severe Damage]
or exceeding limit

Yes Flight into ash cloud NNC [Loss of thrust

IF
on Both Engines]
No
Yes
IF NNC [Volcanic Ash]
No
NNC [Engine Limit]
N1 or N2 fluctuating up/down

Yes Unusual engine noises

IF
No Yes
IF NNC [Engine Stall]
No
NNC [Engine Surge]
N1 and N2 spooldown, EGT decreasing

Yes Yes NNC [Loss of Thrust

IF Both engines IF on Both Engines]
No No
NNC [Engine
Engine vibrations In-Flight Start]
NNC [Engine Failure]
Yes
IF NNC [High Engine Vibration]

No No response to thrust lever movement

NNC [Engine Limit or Surge or Stall]

The flow chart above analyses all different kinds of engine failures. As a result, it is far too complex for use in flight.
Since multiple kinds of engine failures refer to the same NNC, the following logic gate is more useful in flight :

OVERHEAT (only) NNC [ENGINE OVERHEAT]

FIRE WARNING
N1 or N2 zero RPM NNC [ENGINE FIRE or Engine Severe
Damage or Separation]
N1, N2 or EGT near or exceeding limit
N1 or N2 fluctuating up/down
Unusual engine noises NNC [Engine Limit or Surge or Stall]
No response to thrust lever movement

N1 and N2 and EGT decreasing NNC [Engine Failure or Shutdown]

Engine vibrations (only) NNC [High Engine Vibration]