We propose a new XOR based scheduling algorithm for network coding in cooperative local repair. The proposed algorithm proceeds in three phases. First, the nodes exchange their packets availability vectors. This is followed by a short period of distributed scheduling, wherein the nodes execute the processing algorithm, developed to minimize the total transmission time. In the third phase, nodes transmit the encoded packets as per the decision of the scheduling algorithm. In addition, we study the effects and trade-offs of file sizes, processing delays, number of users and packets' availability. In the sequel, we display the favorable effects of file segmentation. Simulation results show improvement in the system throughput and in the processing delay.