This paper presents a methodology, based on Virtual Reality (VR), for representing a manufacturing system in order to help with the requirement analysis (RA) in CIM system development, suitable for SMEs. The methodology can reduce the costs and the time involved at this stage by producing precise and accurate plans, specification requirements, and a design for CIM information systems. These are essentials for small and medium scale manufacturing enterprises. Virtual Reality is computer-based and has better visualization effects for representing manufacturing systems than any other graphical user interface, and this helps users to collect information and decision needs quickly and correctly. A VR-RA tool is designed and developed as a software system to realize the features outlined in each phase of the methodology. A set of rules and a knowledge base is appended to the methodology to remove any inconsistency that could arise between the material and the information flows during the requirement analysis. A novel environment for matching the physical and the information model domains is suggested to delineate the requirements.