I have tested and can confirm having over 100% does not always skip tiers. I have an assembly machine crafting normal steel to normal steel chest, with 766% quality. I would expect that to skip at least 7 tiers but after running for awhile I have got: 2.4k uncommon (23.5%), 7.1k rare (69.6%), 718 epic (6.96%), 71 (0.696%) legendary, and 8 in total for everything after legendary. 10200 items in total. 77.4% is rare and above
I believe the calculation is baked into the code and not part of the mod. There is a fixed 10% to upgrade to next tier. Meaning, we get 100% to get uncommon, then 76.6% (766 * 0.1) to get rare and above (close enough to the number above), then 7.66% for epic and above, and this keeps going.
MEANING, if we want to skip tiers, it's 100% for the first tier, 1000% for the next one, 10000% for the next one. I have tested with 1000% and it skips exactly 2 tiers minimum. Unfortunately, there is a cap on quality%, around 3600%