A vehicle includes an engine, transmission, and controller. The transmission includes a clutch pack, a clutch piston, and a position sensor. The sensor measures a changing magnetic field with respect to the piston, and encodes the measured magnetic field as a raw position signal. The controller receives the raw position signal and processes the raw position signal through a signal processing module to generate a filtered signal attenuating signal noise in the position signal. The controller determines a commanded position of the piston, and calculates separate proportional (P), derivative (D), and integral (I) control terms using the commanded position and filtered position signal. The controller also calculates a feed-forward control term using the commanded position, and a required flow rate for actuating the clutch pack as a function of the PID terms and the feed-forward commanded position term. The controller actuates the clutch pack using the commanded flow rate.