This paper proposes knowledge-based modelling framework to manage the storage, analysis, and processing of data, information, and knowledge of a typical Flexible Manufacturing System (FMS). The framework utilizes the concept of virtual engineering object (VEO) and virtual engineering process (VEP) for developing knowledge models of FMS to achieve effective scheduling and manufacturing flexibility. The proposed generic model is capable of capturing in real time the manufacturing data, information and knowledge at every stage of production i.e. at the object level, the process level, and at the factory level. The significance of this study is that it supports decision making by reusing past decisional experience, which will not only help in effective real time data monitoring and processing but also make FMS system more intelligent and ready to function in the virtual Industry 4.0 environment.