Smart manufacturing has become a vital technique for increasing productivity and efficiency. Firms are following a smart manufacturing implementation system to compete in the market. Therefore, it is mandatory to find the crucial factors that enable the implementation of intelligent manufacturing in enterprises. This study proposes the framework for a new model factory based on the three-dimensional model that extends the product lifecycle layer. It also analyzes the significant attributes and interdependence relationships of causes and effects through the fuzzy DEMATEL approach for the selected small and medium enterprises discussed as a case study. The results show that the factors in Region 1 are significant attributes that need to be focused on for the development and establishment of small and medium enterprises under consideration. These attributes include design documentation (A11), intelligently management of small and medium enterprises (A3), visualization and monitoring of logistics and production (A6), flow of information, energy, and materials (A12), management platform and data acquisition for equipment (A7), and visualization of quality and process (A5). The sensitivity analysis is also performed to check the results’ validity, reliability, and robustness. This study aids any manufacturing firm in analyzing the critical attributes that contribute to implementing smart manufacturing.