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In this study, scheduling method using a combination of auction-type real-time scheduling and simulation is proposed in order to automate the scheduling for machining job shop. The control mechanism which is essential for executing real-time scheduling and simulation simultaneously has been developed and implemented. The auction algorithm for the real-time scheduling which improves the delay of delivery date and amount of setup time at the same time is investigated. Also the method of simulation during the real-time scheduling which can predict the changing situation of the shop and automatically take countermeasures by adjusting the scheduling precondition is discussed. It is clarified that the proposed system has the ability to automate machining job shop scheduling.