This paper proposes a new criterion for selecting the optimum number of Intrinsic Mode Functions (IMFs) from vibration signals measured on rotating machines. The criterion is based on calculating the variation of normalized Shannon entropy ([Formula: see text]) between two successive IMFs, enabling the optimization of the number of processed IMFs. The method combines Variational Mode Decomposition (VMD) with Wavelet Multi-Resolution Analysis (WMRA) using the newly introduced criterion. The key steps involve determining the optimal number of IMFs, decomposing the vibration signals using VMD, and applying WMRA to the selected IMFs. Numerical simulations and experimental results demonstrate its effectiveness in identifying various faults, including gear defects, shaft misalignment, insufficient backlash, and belt defects. These latter flaws are the primary cause of the elevated noise levels in the measured signals. Finally, to validate our approach in an industrial setting, we diagnosed a turbofan, which revealed the presence of several typical faults for this type of installation. The proposed approach addresses a critical industry need by increasing fault diagnosis accuracy in noisy environments. Its practical impact stems from its ability to improve early fault detection, which is critical for predictive maintenance strategies aimed at reducing equipment downtime and extending its lifespan.