In the vision of smart manufacturing and Industry 4.0, it is vital to automate production processes. There is a significant gap in current practices, where the derivation of production processes from product data still heavily relies on human expertise, leading to inefficiencies and a shortage of skilled labor. This paper proposes a universal framework for skill-based cyber–physical production systems (CPPS) that formalizes production knowledge into machine-processable formats. Key contributions include a novel conceptual model for skill-based production processes and an automated method to derive production plans from high-level CPPS skills for production planning and execution. This framework aims to enhance smart manufacturing by enabling more efficient, transparent, and automated production planning, thereby addressing the critical gap in current manufacturing practices. The framework’s benefits include making production processes explainable, optimizing multi-criteria systems, and eliminating human biases in process selection. A case study illustrates the framework’s application, demonstrating its current capabilities and potential for modern manufacturing.