Failure in FMS includes two aspects: equipment breakdown and tool failure of which should be considered in an excellent FMS scheduling system. Most of past scheduling researches have only discussed the former and the analysis of the latter rarely seen in relevant papers. The scheduling system without tool failure processing seems to be not coincident to the actually production in which tool breakdowns are very common. This paper gives a dynamic scheduling simulation model with concern of the two kind failure using Object-Oriented technology and Colored Petri Net (OOCPN). Rescheduling strategy of tool failure is proposed and the simulation analysis is given which shows that our model and principle are effective and adaptable to actual case.