The Warriors have won three Super League games in a row and sit just two points behind leaders Hull FC.
"I think we're off it at the moment, I don't think we're anywhere near our potential," Wane, 51, told BBC Radio Manchester.
"I was asked a few weeks ago and I said we're four or five out of 10 and I still think the same."
He added: "I don't mean to say that in an arrogant way, I genuinely believe that. I know what the players are capable of."
Wigan winger Josh Charnley has impressed during their recent run, including a hat-trick in Friday's win at Salford.
He has now scored 15 tries in 17 outings in what is his final season with the club before a cross-code switch to Sale Sharks.
"I think he's been great," added Wane. "I do think his performances have improved and that shows you the mental strength of Josh Charnley.
"He'll be sorely missed by us, but he wants to go out of this season with a bang and the way he's playing at the moment, he's been outstanding.
"He has my mentality that we want to win things every single year, and he's playing that way."

North of the Sun - Nordfor Sola in Norwegian - is among several documentaries on the Banff Mountain Film Festival's UK and Ireland tour.
It has already been shown at Inverness's Eden Court, where the Canadian festival's tour kicked off last month.
Winner of the festival's grand prize, people's choice and Dolby Audio awards, North of the Sun follows Inge Wegge, 25, and Jorn Ranum, 22, and their bid to surf through a Norwegian arctic winter.
Their surfers' paradise is a beach surrounded by high, steep cliffs on a remote island.
They initially managed to keep the location secret from the rest of the world's surfing community, however, since making the film it has been discovered by other Norwegians.
Over the winter of 2010-11, they shot footage at the beach for North of the Sun.
Before winter set in and the days became almost permanently dark, the pair built a cabin next to a large rock using timber and other materials washed up on the beach.
What rubbish they could not put to a new use, they stored away in piles for later uplift by a recycling company.
Inge and Jorn's other environmentally-friendly initiatives included using cooking oil to fuel their van carrying their surf boards.
They also lived off expired foodstuff that would normally have ended up in the bin.
Speaking to the BBC Scotland news website, Inge and Jorn said they were already well used to surfing in cold water before making their film.
"This is just the way it is in Norway," said Jorn.
"We have been to other places for surfing but Norway is the favourite place.
"It is not just about the surfing, but the whole experience. Just being out there in the waves, with the steep mountains all around you, the eagles, and the seal popping his head up to say hello."
Inge added: "I think the coldest temperatures were between three to four degrees C.
"It's not the temperature in the water that is the worst, but the temperature in the air. Especially if there is wind a couple of degrees below zero - then you really feel the cold."
The duo had planned on ending their adventure at Christmas but, after a short break with their families returned to the beach to continue surfing.
Inge said: "We never thought about going home, we lived comfortably, surfed and had fun most of the time."
When not surfing the film shows the men gathering driftwood to keep their stove burning, and also gathering tonnes of rubbish.
Fishing gear, such as plastic fish boxes, from Scotland were among items they found.
Jorn said: "There is stuff from all over the world. A lot from Russia, Norway and the UK."
Since making the film, the pair's "secret paradise" has been discovered by other Norwegians.
Inge said: "I think it's secret those watching the film when it is touring and screening out in the world.
"But its not a secret in the area where we stay. People have found the hut, and it has became quite a popular 'attraction'."
Jorn added: "People have used the house and some have stayed there for days.
"It's cool that people are using it, fixing broken things.
"Our fourth guest book is almost full."
Wigan head coach Shaun Wane believes there is much more to come from his squad in the second half of the season.
[NEXT_CONCEPT]
Two surfers have documented a winter they spent riding waves above the Arctic Circle in a film that is being shown in the UK.