A method and system for maximizing process capability in a progressive forming operation. The method compensates for deviations introduced by unformed components, and uses closed loop feedback to compensate for deviations introduced by forming tools. Fiducial features are detected on an incoming component, and a first compensation value is calculated from displacement of the fiducial features from an ideal forming location on the component. Component position with respect to a theoretical forming position is adjusted according to the first compensation value. Placement of a feature formed on the component at the adjusted position is detected and compared to the ideal forming location to obtain a difference value. A second compensation value is derived from a plurality of difference values. Forming positions for subsequent incoming components are adjusted with respect to the theoretical forming position according to first and second compensation values. A system according to the invention comprises a loading station for incoming components, an imaging subsystem for detecting deviations, a computer for calculating compensation values, a conveyor for positioning components, and one or more forming tools for forming a feature on the component. The computer subsystem comprises a central controller for actuating system components, collecting and storing data, and executing compensation algorithms.