The concept of autonomous & distributed production systems has been proposed in order to cope with various disturbances in recent years. However, it is required for the production system to realize more high flexibility and performance. In this paper, dynamic production scheduling system that considers set-up time is proposed. We focused on the combination and timing of processing sequences on both processing cells/parts, analyzed set-up time in detail, and proposed timing rule and set-up time rule in selection. Then, these rules are introduced in dynamic production scheduling system and applied to a case study.