Aiming at the problem that there is no research result in the complex products processing and assemble integrated scheduling problem with setup time, this paper proposes strategy to resolve this problem. That is to determine scheduling sequence of procedures according to layer priority strategy, shorten time strategy and long path strategy. Then adopt algorithm of inserting setup time dynamically to determine the start time of procedures by scheduling sequence. As this algorithm avoids to move scheduled procedures many times after inserting setup time, the time complexity is only secondary. So this algorithm is simple and has high scheduling efficiency.