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Efficient performance monitoring in production systems holds paramount importance as it enables organizations to optimize their manufacturing processes, enhance productivity, and maintain a competitive edge in the market. Typically, machine and system level performance monitoring systems are investigated independently, whereas an integrated approach that considers both levels can offer valuable insights and benefits. This paper introduces a data-driven approach for evaluating and improving the performance of production lines by monitoring the performance of both individual machines and their interactions as a system. The approach begins with a rigorous methodology for classifying machine states recorded by the Manufacturing Execution System (MES) into finer-grained substates, enabling a comprehensive analysis of machine cycle time variability. Subsequently, these substates are leveraged as a …