In the dynamic and ever-changing landscape of manufacturing, flexibility is crucial for success. Flexibility in this context refers to the ability to handle a variety of product variants within a single production facility, manage smaller batch sizes of different products, and reorganize production orders with minimal effort. To meet these demands, the Capabilities, Skills and Services (CSS) model is used for implementing capability-based engineering. This model, which extends the Product, Process and Resource (PPR) paradigm, separates product design from production engineering. The first version of the discussion paper of the Plattform Industrie 4.0 working group "Semantics and Interaction of I4.0 Components", presented the CSS information model. It is the basis and starting point for the present document. Ongoing work and practical exploration of the defined CSS mode depicted further necessary expansions and refinement of it. One of the main focuses of the authors in this discussion paper was on the design of a methodology to develop capabilities.