To apply fuzzy logic, two major tasks need to be performed: the derivation of production rules and the determination of membership functions. These tasks are often difficult and time consuming. This paper presents an algorithmic method for generating membership functions and fuzzy production rules; the method includes an entropy minimization for screening analog values. Membership functions are derived by partitioning the variables into the desired number of fuzzy terms and production rules are obtained from minimum entropy clustering decisions. In the rule derivation process, rule weights are also calculated. This algorithmic approach alleviates many problems in the application of fuzzy logic to binary classification.