Manufacturing shop floor dynamics such as tool breakage or machine performance degradation or breakdown will disrupt the execution of planned production schedules. An intelligent shop floor is one that is able to react to changes that are occurring in a positive way. To give the early warning of the system/equipment health conditions and job execution capability to the supervisory control will improve the productivity and efficiency of the shop floor. This paper presents a new concept called iDiagnosis & Prognosis - an intelligent diagnosis, prognosis, manufacturing system condition and job execution capability assessment system based on the Internet, web service and agent technologies. The paper introduces the basic concept of iDiagnosis & Prognosis. The proposed approach provides system functions, architecture and system components. The iDiagnosis & Prognosis dynamic model encompasses both information flow and event handling of the shop floor dynamics.