The purpose of this research was to design and develop a machine Smart Machine Health Monitoring device (SMHM) for traditional manufacturing units based on the industry 4.0 (I4.0) concept. Machine tool performance has been demonstrated using metrics such as overall equipment effectiveness (OEE), mean time between failure (MTBF), and mean time to failure (MTTF). The rejection rate and unscheduled downtime were reduced by 68.04 percent and 46.47 percent, respectively, when using SMHM. The breakdown rate in the H-Shackle manufacturing section was reduced by 86.63%. The breakdown in a month with the development of SMHM has been reduced by 81.03 percent. The SMHM system improves MTTF and MTBF by 88.78% and 88.8%, respectively, and OEE by more than 80%. Overall H-shackle production has increased by 59.36%. As a result, the developed SMHM device was discovered to be consistent in increasing the efficiency of the manufacturing section. In the case organization, this system was implemented in the traditional machine tools unit.