A kinematic diagram is a simplified drawing that shows the essential components needed for kinematic analysis. It numbers all links and labels all joints. Kutzbach's equation calculates the degrees of freedom (DOF) of a mechanism as DOF = 3(L-1) - 2J1 - J2, where L is the number of links, J1 is the number of single DOF joints, and J2 is the number of two DOF joints. The document provides examples of applying this equation to determine the DOF of different mechanisms.