Abstract The emerging of the new global economy has forced companies to adopt innovative manufacturing practices. In this context the concept of Extended Enterprise has emerged as a model which companies are pursuing in order to remain competitive in global markets. A research project named Extended Enterprise Demonstration Factory program is being carried out in order to create reference models, methodologies and tools for the implementation of the concept of Extended Enterprise in Mexican SMEs (Small and Medium Enterprises). From this project an integrated methodology for planning and implementation of best manufacturing practice has been developed. This methodology consists of five phases: 1) Evaluation of the enterprise in terms of performance indicators; 2) Modelling and Simulation of AS-IS core process; 3) Selection of best manufacturing practices for core process enhancement; 4) Modelling and simulation of TO-BE core process; 5) Evaluation of manufacturing practices implementation in terms of their impacts and benefits.
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