This paper introduces a production scheduling system for the block assembly shop in a shipbuilding company. We are to make a schedule for the assembly shop and related subassembly production shop. The objectives of the scheduling system are balancing of the workload of the subassembly shops as well as the assembly shop. There are a number of technological and resource constraints including assembly space restriction which is most important and critical resource in the shop. It is very hard and time consuming to consider the two problems, the workload balancing and the spatial allocation problem, simultaneously, and hence, we analyze the two problems independently. The first problem has already been introduced(고시근, 1996), and the overall appearance of the system and the spatial allocation algorithm are presented in this paper.