Kaizen is a part of Lean Manufacturing that focuses on the concept of continuous improvement to reduce waste. For implementing Kaizen on the factory floor, comprehensive and efficient tools for data acquisition, process measurement and analysis are required. The MTConnect open specification provides for cost-effective data acquisition on the manufacturing floor for machine tools and related devices. This paper will look at a Kaizen implementation on the shop floor level for continuous improvement using real-time MTConnect data. The Kaizen transformation of machine data into production knowledge was performed in order to understand energy consumption, asset operation and process performance. The paper takes a detailed examination of the machine tool energy management.