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This paper explores the feasibility of including manufacturing facilities in smart grid. A microgrid in a suburban region in Indiana serving 150 single-family homes, 4 medium-sized office buildings, and 1 flow shop is simulated using GridLAB-D. For residential and commercial buildings, passive controllers are implemented on thermostatically controlled devices. For the factory, Drum-Buffer-Rope (DBR) methodology is used to schedule processes to minimize impact on productivity while reducing power consumption during peak hours. Results suggest that it is possible for an industrial facility to become an integrated part of a smart grid. Future research opportunities related to smart factories are discussed.