Industry 4.0 integrates the intelligent networking of machines and processes through advanced information and communication technologies (ICTs). Despite advancements, small mechanical manufacturing enterprises face significant challenges transitioning to ICT-supported Industry 4.0 models due to a lack of technical expertise and infrastructure. These enterprises commonly encounter variable production volumes, differing priorities in customer orders, and diverse production capacities across low-, medium-, and high-level outputs. Frequent issues with machine health, glitches, and major breakdowns further complicate optimizing production scheduling. This paper presents a novel production management approach that harnesses bio-inspired methods alongside Internet of Things (IoT) technology to address these challenges. This comprehensive approach integrates the real-time monitoring and intelligent production order distribution, leveraging advanced LoRa wireless communication technology. The system ensures efficient and concurrent data acquisition from multiple sensors, facilitating accurate and prompt capture, transmission, and storage of machine status data. The experimental results demonstrate significant improvements in data collection time and system responsiveness, enabling the timely detection and resolution of machine failures. Additionally, an enhanced genetic algorithm dynamically allocates tasks based on machine status, effectively reducing production completion time and machine idle time. Case studies in a screw manufacturing facility validate the practical applicability and effectiveness of the proposed system. The seamless integration of the scheduling algorithm with the real-time monitoring subsystem ensures a coordinated and efficient production process, ultimately enhancing productivity and resource utilization. The proposed system’s robustness and efficiency highlight its potential to revolutionize production management in small-scale manufacturing settings.