This research aims to explore the impact of welding process parameters and beam oscillation on weld thermal cycle during laser welding. A three-dimensional heat transfer model is developed to simulate the welding process, based on finite element method. The results obtained from the model pertaining to thermal cycle and weld morphology are in good agreement with experimental results found in the literature. The developed heat transfer model can quantify the effect of welding process parameters (i.e. heat source power, welding speed, radius of oscillation, and frequecy of oscillation) on the intermediate performance indicators (IPIs) (i.e. peak temperature, heat-affected zone (HAZ) volume, and cooling rate). Parametric contour maps for peak temperature, HAZ volume, and cooling rate are developed for the estimation of the process capability space. An integrated approach for rapid process assessment, and process capability space refinement, based on IPIs is proposed. The process capability space will guide the identification of the initial welding process parameters window and helps in reducing the number of experiments required by refining the process parameters based on the interactions with the IPIs. Among the IPIs, the peak temperature indicates the mode of welding while the HAZ volume and cooling rate represent weld quality. The regression relationship between the welding process parameters and the IPIs is established for quick estimation of IPIs to replace time-consuming numerical simulations. The application of beam oscillation widens the process capability space, making the process parameter selection more flexible due to the increase in distance from the tolerance boundaries.