Numerous studies have been conducted to reveal the importance of Smart Manufacturing Systems (SMS) or Industry 4.0, but very few studies have been made to answer the question on "how to establish a new SMS" taking into account the required efficiency, reliability, cost-effectiveness, and sustainability that requires pre-implementation planning and assessment. Besides, the discussion on the challenges of SMS adoption is very limited in the literature studies. In particular, the recent configuration models proposed by literature overlooked the pivotal role of robots in any SMS project. Therefore, a clear and concise development framework is needed to provide a better understanding of the development process of a new SMS, which leads to higher adoption of this new technology. To do so, the main objective of this study is to propose a development methodology framework that enables stakeholders to build better SMS capabilities while enhancing the adoption awareness of industry 4.0 among manufacturers. The framework consists of four phases, system and robots' configuration, smart system components, smart system integration, and evaluation and selection. This study supports the realization of Industry 4.0, particularly in Malaysia. Currently, Malaysia is behind other ASEAN countries like Indonesia and Singapore as the highest growth country in the digital economy. The proposed methodology is expected to support different industries in the adoption of the technology in building a new SMS or evaluating an existing one.