Resource Guide to Effective 

Utility Management and Lean 

Improving Performance and Addressing Key 

Management Priorities at Water-Sector Utilities

October 2012 
Resource Guide to Effective Utility Management and Lean

Acknowledgments

The U.S. Environmental Protection Agency (EPA) is grateful for the valuable assistance of the individuals 

who helped develop this Resource Guide and shared experiences and ideas for improving the 

effectiveness of water-sector utility management with Lean and Six Sigma methods. EPA’s Office of 

Water and the EPA Office of Policy jointly sponsored the development of this resource guide.

This resource guide has benefited from the collective expertise of many individuals at water and 

wastewater utilities who are familiar with effective utility management and Lean. In particular, EPA 

would like to thank the following individuals for their thoughtful contributions:

• Richard Bickerstaff, Strategic Business Systems Manager, Charleston Water System, South 

Carolina

• Randy Brown, Utilities Director, Utilities Department, City of Pompano Beach, Florida

• Maria Loucraft, Utilities Compliance and Efficiency Manager, Utilities Department, City of 

Pompano Beach, Florida 

• Ed McCormick, Manager, Wastewater Engineering, East Bay Municipal Utility District, California

• Tyler Richards, Deputy Director, Operations and Environmental Services, Gwinnett County 

Water Resources, Georgia

• Dan Roberts, Director, Utilities Department, City of Palm Bay, Florida 

• Gwendolyn Ruff, Vice President, Strategic Planning and Employee Services, Columbus Water 

Works, Georgia

• Mat Stickler, Information Technology Division Manager, Clean Water Services, Oregon 

• Diane Taniguchi-Dennis, Deputy General Manager, Clean Water Services, Oregon 

• Donna Wies, Quality Program Coordinator, Union Sanitary District, California

This resource guide was prepared for EPA by Jennifer Tice, Eirin Krane Peterfreund, and Rob Greenwood 

of Ross Strategic (www.rossstrategic.com) in association with Industrial Economics, Inc. (EPA Contract #

EP-W-10-002). 

Disclaimer

Appendix C of this Resource Guide contains case studies of several utilities' experiences implementing 

EUM and Lean; these case studies have been thoroughly reviewed and approved by the utilities. 

Representatives of EPA have reviewed and approved this document, but this does not necessarily 

constitute EPA endorsement of the observations or recommendations presented in Appendix C.
Resource Guide to Effective Utility Management and Lean

Table of Contents

Preface .............................................................................................................................................. i

Executive Summary...........................................................................................................................iii

Chapter 1: Why Lean is Important for Water-Sector Effective Utility Management ..............................1

Purpose of This Resource Guide ..............................................................................................................................1

Benefits of Using Lean to Achieve Effective Utility Management Outcomes..........................................................2

Organization of This Resource Guide.......................................................................................................................6

Chapter 2: Overview of Lean and Effective Utility Management ..........................................................7

What Is Effective Utility Management? ...................................................................................................................7

What Is Lean?...........................................................................................................................................................8

Connections Between Lean and Effective Utility Management ............................................................................10

Chapter 3: How Lean Works: Lean and Six Sigma Methods, Utility Applications, and Effective Utility 

Management...................................................................................................................................13

Introduction to Lean and Six Sigma Methods........................................................................................................13

Key Lean and Six Sigma Methods Relevant to Water-Sector Utilities ...................................................................14

Finding Lean Methods to Meet Your Effective Utility Management Goals...........................................................25

Chapter 4: Starting the Effective Utility Management and Lean Journey ...........................................27

Steps for Getting Started with EUM and Lean.......................................................................................................27

Facilitating Long-Term Success with EUM and Lean..............................................................................................33

Concluding Thoughts .............................................................................................................................................38

APPENDICES ....................................................................................................................................39

Appendix A: Glossary .......................................................................................................................41

Appendix B: EUM and Lean Resources..............................................................................................45

Appendix C: Case Studies .................................................................................................................53

Charleston Water System Case Study....................................................................................................................53

Clean Water Services Case Study...........................................................................................................................59

City of Palm Bay Utilities Case Study .....................................................................................................................69

City of Pompano Beach Utilities Case Study ..........................................................................................................79

Appendix D: Sample Templates........................................................................................................87

Lean Event Charter.................................................................................................................................................88

Six Sigma Plan-Do-Check-Act Project Worksheet ..................................................................................................89

Root Cause Analysis “Fishbone” Diagram..............................................................................................................91

SIPOC Process Definition Sheet..............................................................................................................................92

Process Improvement Form...................................................................................................................................93
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Resource Guide to Effective Utility Management and Lean | i

Preface

Water and wastewater utilities are critical to the environmental, economic, and social well being of our 

nation’s communities, as they work to ensure that the public continues to enjoy the benefits of clean 

and safe water. These utilities are facing unprecedented challenges, many of which have been 

exacerbated by the economic downturn, including:

• Aging infrastructure that needs more intensive repair and replacement

• Continuing regulatory challenges, including the need to often balance priorities among multiple 

compliance endpoints

• Workforce challenges, including an aging workforce and difficulties in recruiting and retaining 

qualified staff

• Uncertainty about future federal funding

• Competing local priorities and the dwindling resource base in many communities. 

To help address these challenges, utilities have made a concerted effort over the past several years to 

improve the management, overall efficiency, and sustainability of their operations. In this regard, there 

are numerous systems, tools, and programs that can help utilities improve their efficiency and 

performance in many areas of operations. However, utility managers often express concern about the 

lack of a common utility management framework that can provide utilities of all sizes with a series of 

outcomes to pursue that will help them improve all aspects of their operations, while still providing the 

flexibility for them to use a variety of existing management tools and techniques to achieve their goals. 

In 2007, based on recommendations from leading water and wastewater utility managers, EPA and six 

water-sector associations signed a historic agreement to promote effective utility management (EUM) 

based on a series of Attributes of Effectively Managed Utilities and Keys to Management Success. These 

Attributes describe the kinds of outcomes that all utilities, regardless of size, should strive for to manage 

their operations and infrastructure most effectively, while the Keys provide the organizational structure 

and systems to achieve successful outcomes. In 2008, these same collaborating organizations published 
Resource Guide to Effective Utility Management and Lean | ii

the Effective Utility Management Primer for Water and Wastewater Utilities, which is available at: 

www.watereum.org. The EUM Primer provides utilities with a simple step-by-step process to assess 

their operations based on the EUM Attributes and chart a course for making systematic changes to 

improve and measure performance based on utility priorities. The EUM Primer has been well accepted 

and provides a solid foundation for utilities to assess and improve the management of their operations 

and infrastructure. EUM—and the Attributes and Keys to Management Success it encompasses—are 

critical to the sustainability of water-sector utilities.

Effective planning is also critical to the effective management of a utility and its infrastructure. In 

recognition of this, in February 2012, the Office of Water at EPA published Planning for Sustainability: A 

Handbook for Water and Wastewater Utilities. The Handbook provides information about ways in 

which utilities can build sustainability considerations and other techniques into their planning processes 

to help them make the right infrastructure choices for their communities and ensure that this 

infrastructure is effectively managed over its full life cycle. Copies of the Handbook are available at: 

http://water.epa.gov/infrastructure/sustain/upload/EPA-s-Planning-for-Sustainability-Handbook.pdf. 

While the EUM Attributes focus on outcomes water-sector utilities should strive to achieve, there also is 

a need to demonstrate how other well-accepted tools can help utilities, improve efficiency, reduce 

waste in their operations, and promote utility sustainability. One set of tools involves the use of Lean

techniques. Lean involves a powerful set of specific practices that can help utilities achieve the 

outcomes embodied in the EUM Attributes. Accordingly, EPA has developed this Resource Guide to

Effective Utility Management and Lean based on input and examples from several utilities involved in 

both EUM and Lean. In simple terms, the EUM Attributes express what utilities should seek to achieve 

and Lean tools outline how to work towards those attributes, or outcomes. This Resource Guide is 

intended to be a bridging document that explains how these two important and complementary 

approaches can be used by utilities to reduce waste and improve overall efficiency and effectiveness. 
Resource Guide to Effective Utility Management and Lean | iii

Executive Summary

This Resource Guide to Effective Utility Management and Lean explains how water-sector utilities can 

use these two important and complementary approaches to reduce waste throughout their operations, 

while continuing to improve utility products and services for customers.

• Effective Utility Management (EUM) is a framework that helps water-sector utilities assess their 

strengths and weaknesses, set priorities, and identify what outcomes they want to achieve. The 

EUM Framework consists of 10 Attributes of Effectively Managed Utilities, Five Keys to 

Management Success, and an EUM Self-Assessment Tool.

• Lean is a business improvement approach focused on eliminating non-value added activity or 

“waste” using practical, implementation-based methods; it is often combined with Six Sigma, a 

set of statistical tools designed to eliminate defects and variation. Lean and Six Sigma provide 

the “how to” tools, helping utilities achieve the outcomes. 

Benefits of EUM and Lean

There are three key reasons for using EUM and Lean together:

1. Address key management priorities: EUM is a simple and compelling way for water-sector 

utilities to identify improvement priorities based on the EUM Attributes; this framework 

provides a roadmap for success, while Lean provides structured tools for implementation.

2. Deliver financial and operational results, improve customer service, and reduce risk: Watersector utilities have used Lean and Six Sigma to save millions of dollars, improve product quality, 

enhance customer service, improve morale, and reduce environmental and safety risks.

3. Enhance continual improvement efforts: Lean offers a range of powerful, yet simple methods 

for engaging employees in continual improvement efforts—a key foundation for EUM success. 
Resource Guide to Effective Utility Management and Lean | iv

Water-Sector Utility EUM and Lean Experience

Water-sector utilities have applied Lean and Six Sigma methods to all types of organizational processes, 

ranging from administrative processes like budgeting to core operational processes like treatment plant 

operations and sewer system repairs. Highlights of utility EUM and Lean experience include: 

• Charleston Water System in South Carolina used Lean and Six Sigma methods to enhance 

financial viability, operational optimization, and water resource adequacy in a wastewater 

collection inflow and infiltration project that saved $1.3 million per year in operations and 

maintenance costs and increased treatment capacity by 2.62 million gallons per day.

• Clean Water Services in Oregon invested in Lean and Six Sigma because it needed proven, datadriven improvement tools to advance its resource-recovery vision. The utility’s Bio-P project is 

expected to enhance operational optimization, financial viability, and community sustainability 

by saving $250,000 in chemical costs per year and increasing struvite recovery by 20 percent. 

• The City of Palm Bay Utilities Department in Florida improved financial viability and operational 

optimization using Six Sigma techniques to facilitate a 40 percent reduction in energy costs at its 

water and wastewater treatment plants from the base year 2008 projected through 2012. 

• The City of Pompano Beach Utilities in Florida used Six Sigma to study the low participation in 

its residential water reuse connections program. Using Six Sigma, the utility developed a new 

reuse program, improving water resource adequacy and community sustainability by increasing 

use of reuse water, saving a projected 92.4 million gallons of water between 2011 and 2013.

Lean Methods and Effective Utility Management Connections

Although Lean originated in manufacturing, it is now used across a wide variety of industries. Lean and 

Six Sigma methods that are highly relevant to water-sector utilities include the following. 

Method Definition Connection to EUM Attributes

Standard Work Documentation of the best way to perform a task, 

often incorporating pictures to make it easy to follow 

Product Quality, Operational 

Optimization, Customer Satisfaction, 

Operational Resiliency, and 

Infrastructure Stability

5S (or 5S+Safety) A 5-step process to develop and maintain a clean, neat, 

safe, and orderly work area; a sixth “S” can be added 

for Safety

Operational Resiliency, Operational 

Optimization, and Employee and 

Leadership Development 

Lean Event (e.g., 

kaizen event)

A 2-5 day period when a cross-functional team of 

employees analyzes and improves a process

Operational Optimization, Customer 

Satisfaction, and Financial Viability

Total Productive 

Maintenance

A method that engages all workers in maximizing the 

effectiveness of equipment, with the goal of preventing 

breakdowns, accidents, and other losses

Infrastructure Stability and 

Operational Resiliency

Six Sigma An improvement approach and set of statistical tools 

designed to eliminate defects and variation

Product Quality, Operational

Optimization, Financial Viability, and 

Customer Satisfaction
Resource Guide to Effective Utility Management and Lean | v

Lean tools, as well as the EUM Self Assessment, can be used by utilities of all types and sizes, and scaled 

depending on the project size. For example, water and wastewater utilities have used Lean in projects 

ranging from organizing workstations and improving the efficiency of inventory and supply processes, to 

optimizing treatment plant processes. Lean relies on simple concepts, low-cost solutions, and employee 

creativity to yield large performance gains without significant resource investments.

Steps for Getting Started with EUM and Lean

There are five key steps water-sector utilities can take to 

start improving utility performance and management 

with EUM and Lean: 

1. Conduct an EUM Self Assessment to determine 

improvement priorities. 

2. Engage leadership.

3. Learn more about Lean. 

4. Find technical assistance. 

5. Conduct EUM and Lean improvement projects.

EUM and Lean implementation typically goes through 

phases—ranging from learning about Lean tools and 

conducting small ad hoc projects to a transformative 

phase where EUM and Lean become “the way we work,” 

and continual improvement is everyone’s job. Keys to 

long-term success include leadership; strategic business 

planning; organizational approaches that integrate 

process-improvement methods, communications, and 

training; measurement; and a continual improvement 

management framework. Lean, in particular, enhances organizational approaches, performance 

measurement, and continual improvement systems. This facilitates a higher level of effectiveness, 

provides objectivity and transparency to decision-making, and supports overall utility sustainability.

The process of becoming a lean and effectively managed utility offers opportunities for near-term, lowintensity gains with the prospect for longer-term, sustained improvements. This Resource Guide is 

designed to help water-sector utilities learn more about EUM and Lean and to equip them to get started 

on an improvement journey of their own.
Resource Guide to Effective Utility Management and Lean | vi

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Resource Guide to Effective Utility Management and Lean | 1

Chapter 1: Why Lean is Important for Water-Sector

Effective Utility Management 

IN THIS CHAPTER

 Purpose of this Resource Guide

 Benefits of using Lean to achieve EUM

outcomes

 Organization of this Resource Guide

Purpose of This Resource Guide

In support of effective utility management (EUM), 

more and more water-sector utilities are 

successfully using an improvement approach and 

collection of powerful tools known as “Lean” or 

“Lean Six Sigma” to improve their operations and 

management. “Lean” is an improvement approach 

focused on eliminating non-value added activity or 

waste, while “Six Sigma” is an improvement 

approach often combined with Lean that uses statistical methods to improve quality and reduce 

variation (see box below). Lean and Six Sigma methods have enabled water-sector utilities to save 

millions of dollars, avoid customer rate increases, improve product quality, enhance customer service, 

reduce energy costs and environmental pollution, and improve employee morale—all of which are 

important outcomes consistent with EUM Attributes. 

EUM provides a roadmap for utility improvement efforts, while Lean provides tools to help achieve the 

EUM Attributes. EPA believes that EUM and Lean are highly complementary. This Resource Guide is 

intended to be a bridging document that shows water and wastewater utility managers how EUM and 

Lean can work together to deliver better results. It introduces EUM and Lean concepts and methods, 

provides guidance on how to get started with EUM and Lean improvement efforts, and describes other 

resources for utilities that would like to learn more. (Note: Unless we refer to particular methods, we 

use the term “Lean” in this Resource Guide to refer generically to both Lean and Six Sigma approaches.)
Resource Guide to Effective Utility Management and Lean | 2

Is It Lean? Is It Six Sigma? Or Lean Six Sigma?

• “Lean” is an improvement approach focused on eliminating waste or non-value added activity. It 

was developed by Toyota based on the principles of Henry Ford. Many Lean methods are simple, 

visual, and can be implemented quickly.

• “Six Sigma” is an improvement approach focused on improving quality by eliminating variation. 

It was developed by Motorola and popularized by GE. Six Sigma uses statistical methods and in 

general requires more training than Lean. 

• “Lean Six Sigma” refers to a combination of Lean and Six Sigma. Some organizations choose to 

use either Lean or Six Sigma as an overarching initiative, even if they use both types of tools. 

Whatever it is called—Lean, Six Sigma, Lean Six Sigma, business process improvement, or 

something else—the important thing is to pick the right tool for the problem at hand.

Benefits of Using Lean to Achieve Effective Utility Management Outcomes

As a utility manager, you are continually 

exposed to a myriad of management 

systems, improvement initiatives, and 

tools. It can be difficult to sort through 

what will be most useful for your utility and 

what will work over the long term. EUM is 

a proven framework, and Lean provides 

established tools that can work together to 

improve utility performance and 

management. There are three key reasons 

to use Lean and EUM together:

• Address key management priorities 

• Deliver financial and operational 

results, improve customer service, 

and reduce risks

• Enhance continual improvement 

efforts

Address Key Management Priorities

As described in the Preface, EUM is a 

simple and compelling way for water-sector 

utilities to identify priorities for their 

improvement efforts based on a series of 

10 Attributes (or outcomes) and five Keys 

to Management Success. The Effective Utility Management Primer for Water and Wastewater Utilities

provides a framework to help utilities assess their performance based on the Attributes and set 

Palm Bay, Florida: Lean and Six Sigma and Effective 

Utility Management

• Palm Bay Utilities views effective utility 

management and the utility’s environmental 

management system (EMS) as key to its success.

• After prioritizing its improvement efforts, Palm 

Bay used Lean and Six Sigma to reduce energy 

costs in its water and wastewater treatment 

plant operations by 34 percent from 2008 to 

2011.

• Palm Bay engages employees in a process 

improvement program that uses Lean methods 

like 5S+S (5S plus Safety); the program had 70 

percent participation and 127 process 

improvements in 18 months. 

• Collectively, the utility’s improvement efforts 

saved $1.15 million in FY 2011, and helped the 

utility to improve its municipal bond ratings in 

2009 (Standard and Poor’s) and 2010 (Moody’s).

Source: Dan Roberts, “Environmental management Systems (EMSs): A 

Key to Financial Viability, Environmental Excellence – and Worthy of 

Regulatory Incentives,” PEER Center website, 

www.peercenter.net/ewebeditpro/items/O73F24974.pdf.
Resource Guide to Effective Utility Management and Lean | 3

priorities to guide utility improvement efforts.1

 An increasing number of water-sector utilities are 

embracing EUM, with many utilities successfully using the Primer and its self-assessment tool to set 

priorities and enhance performance.2

Lean supports the EUM Attributes with a set of practical tools for process and performance 

improvement—it is, essentially, an effective low-cost implementation tool for addressing key 

management priorities based on the attributes. 

 

“The Utilities Department’s 

establishment of a certified ISO 

Environmental Management System 

coupled with the use of Lean and Six 

Sigma tools has led to the utilities’ 

improved and maintained bond ratings 

even in a severe economic downturn.”

– Dan Roberts, Director, Utilities 

Department, City of Palm Bay, Florida 

Deliver Financial and Operational Results, Improve Customer Service, and Reduce Risks

Lean uses a variety of tools—many of them simple 

and visual—to deliver improvements within the 

context of the EUM Attributes. Private and public 

organizations from diverse industries have had 

unparalleled success using these tools to reduce 

costs, increase process speed, decrease errors, and 

enhance customer service. Water and wastewater 

utilities have derived impressive operational and 

administrative improvements from Lean, as the 

examples on the next page illustrate.

Lean works by engaging employees in process 

improvement, focusing on performance metrics, 

emphasizing practical action, and, above all else, eliminating non-value added activity or “waste” from 

processes wherever possible. These wastes include wasted time, wasted resources, and unnecessary

complexity. Utilities implement Lean to:

• Achieve better financial and operational results

• Enhance customer service

• Produce quality products and services

• Optimize operational and administrative processes

• Reduce risks and errors

• Improve staff morale and engage employees

 

1 The Effective Utility Management Primer and other resources are available at www.watereum.org. 2 For example, see the Effective Utility Management case studies available at www.watereum.org/resources. 
Resource Guide to Effective Utility Management and Lean | 4

Operational Improvements at Water and Wastewater Utilities from Lean and Six Sigma 

JEA of Northeast Florida: JEA—an electric, water, and wastewater utility serving five counties in 

Northeast Florida—conducted over 580 process improvement projects through its Green Lean Six 

Sigma Initiative between 2000 and 2010. Highlights of JEA’s Lean and Six Sigma results include:

• Improved financial viability and customer satisfaction by saving $579 million over 10 years 

and avoiding rate increases of $20 per month on average. 

• Improved product quality and community sustainability by reducing nitrogen discharges to 

the St. John’s River by 74 tons per year, allowing the utility to meet its regulatory compliance 

deadline without investing in additional treatment technology. 

• Improved product quality and optimized operations by reducing sanitary sewer overflows 

from 43 per month in 2002 to 2.5 per month in 2009–10. 

• Achieved operational optimization and operational resiliency by reducing recordable safety 

violations from maintenance trucks to zero for over four years. 

Austin Water Utility, Texas: The Austin Water Utility has used Lean to improve its operations since 

2009. The utility has conducted several Lean process improvement events as well as encouraged 

employees to eliminate inefficiencies and wastes through immediate actions, which the utility calls 

“fix-it-here/fix-it-now” improvements. Highlights of Austin Water Utility’s Lean results include:

• Improved financial viability by saving over $2 million from Lean events and activities.

• Improved operational optimization and customer satisfaction by reducing time to respond to 

customer requests for water main repairs by 10 percent. 

• Improved operational optimization and customer satisfaction by minimizing time spent 

repairing water mains by 25 percent, with an average repair time of 5.4 hours.

Renewable Water Resources (ReWa), South Carolina: ReWa used Lean methods, including visual 

dashboards of key performance indicators, to make improvements in many areas of its operations, 

including pretreatment compliance, biosolids management, methane-fueled combined heat and 

power generation, and budgeting processes. 

• These efforts have improved financial viability and aided operational optimization by saving 

as much as $232,000 per year in solids management and chemical usage, saving over 200 

hours per year in planning and travel time, improving preventative maintenance, and 

providing more accurate data for budgeting and construction projects, among other benefits.

Sources: U.S. EPA, “Lean Six Sigma and Environment Case Study: JEA,” www.epa.gov/lean/studies/jea.pdf; Austin Water Utilities webinar 

on ASQ Government Division website, http://asq.org/gov/0002C2/video/division-government/2009-06-26_11-00-

why_lean_succeeds_both_in_private_and_public_sectors.html?shl=100609; Randy Boyette, Chuck Scholpp, and Gabi Miles, “Enabling Lean 

Water Operations: Transforming Date into Information is Critical for Driving Efficiency for Renewable Water Resources (ReWa),” Paper 

presented at Utility Management Conference, 31 January 2012.

EUM and Lean offers a powerful way for water-sector utilities to take their improvement programs to 

the next level, face the ever-increasing resource, infrastructure, and regulatory challenges, and, in the 

words of best-selling business author Jim Collins, move from “good to great.” 
Resource Guide to Effective Utility Management and Lean | 5

Enhance Continual Improvement Efforts

Lean employs a rapid “Plan-Do-Check-Act” management framework that is identical to one of the Keys 

to Management Success in the EUM Primer (Continual Improvement Management Framework). Lean 

can be a powerful vehicle for engaging employees. 

For example, it is typically implemented in “events” 

lasting 2-5 days where cross-functional teams 

analyze a process, identify solutions, and make 

immediate process changes. These events 

empower employees to make changes that will 

make their jobs easier and save the utility time and 

resources. In this way, Lean can be very effective in 

supporting other utility management improvement 

efforts, including environmental, safety, and quality 

management systems.

By emphasizing simple concepts such as eliminating 

waste, visual controls, and teamwork, Lean makes 

it easy for all employees to be involved in continual 

improvement efforts. One of the key benefits of 

Lean to employees is that it makes their jobs 

easier—it eliminates the non-value-added parts of 

processes (waiting time, unnecessary process 

steps, rework, duplicate forms, time spent looking 

for supplies or parts, etc.) and then gives 

employees more time to focus on their core 

responsibilities and priorities. Several utilities have integrated Lean methods into their continual 

improvement efforts to achieve impressive results. For example, employee teams at JEA in Florida and 

Irving, Texas Water Utilities used Lean events and the five-step 5S method to improve the layout and 

organization of maintenance and repair trucks. For both utilities, this improved customer service by 

increasing work crew efficiency. At JEA, the improvements reduced water maintenance crew ticket 

completion time by an average of 30 percent, and allowed 479 additional jobs to be completed per 

year.3

 (See box for more on the City of Irving’s efforts.)

Lean and EUM do not need to be complicated, and they can be implemented without a lot of staff or 

resources. Lean can be as simple as getting a team together to identify and eliminate the waste in a 

process or work area, while a group of managers can conduct an EUM self-assessment in a single 

meeting to set improvement priorities. Both EUM and Lean can be used by utilities of all sizes and can 

be tailored to the specific needs of your utility. Lean methods apply to all types of processes—from 

administrative processes like customer billing to core water and wastewater utility operational 

processes including treatment plant operations and water and sewer system repairs. 

3 A case study of JEA’s Lean and Six Sigma efforts is available on EPA’s website at: www.epa.gov/lean/studies/jea.pdf. 

What Is Lean Like in Practice? 

(Irving, Texas Truck Maintenance Project)

• Irving, Texas Water Utilities used a Lean 

event and methods such as 5S to 

reconfigure the layout of maintenance 

trucks. (Watch a video at: 

www.sixthsigma.com/2009/09/irvingtexas-utility-uses-lean-six.htm) 

• The truck upgrades are estimated to save 

45 minutes in administrative work and 

1.5 hours per work order per day.

• Overall, the City of Irving has saved $30 

million from Lean and Six Sigma since 

2006.

Sources: See article linked above; City savings noted in this 

2012 American City and County podcast: 

http://americancityandcounty.com/administration/lean-sixsigma 

 
Resource Guide to Effective Utility Management and Lean | 6

“Lean is the set of tools that every 

manager needs to achieve operational 

excellence and to stimulate innovation in 

their organizations. It is a pragmatic 

approach to achieving continual 

improvement.”

– Diane Taniguchi-Dennis, Deputy General 

Manager, Clean Water Services, Oregon

Organization of This Resource Guide

The remainder of this Resource Guide is organized 

as follows.

• Chapter 2 presents overview information 

about EUM, Lean, and the connections 

between Lean and EUM.

• Chapter 3 describes how Lean works by 

profiling Lean methods and how they 

relate to water-sector utilities.

• Chapter 4 provides guidance on how 

utilities should get started with improving 

their performance with Lean and EUM.

• Appendices include a glossary, annotated list of resources, and additional case studies.
Resource Guide to Effective Utility Management and Lean | 7

Chapter 2: Overview of Lean and Effective Utility 

Management 

IN THIS CHAPTER

 What is effective utility management?

 What is Lean?

 Connections between Lean and effective 

utility management 

What Is Effective Utility Management?

As mentioned earlier, EUM is a framework 

developed by EPA and six national water-sector 

associations that helps utilities to assess their 

operations, set priorities, and chart a path for 

improving their performance. EUM for watersector utilities improves utility products and 

services, increases community support, and ensures 

a strong and viable utility into the future. The 

Effective Utility Management Primer for Water and 

Wastewater Utilities has three main components:4

• Ten Attributes of Effectively Managed 

Water Utilities (EUM Attributes): The EUM 

Attributes describe outcomes all utilities 

should strive to achieve, provide a clear set 

of reference points, and are intended to 

help utilities maintain a balanced focus on 

important operational areas.

• Keys to Management Success: The five Keys 

to Management Success are proven 

approaches to help utilities maximize their 

resources and improve performance. 

• Where-to-Begin Self-Assessment Tool: This 

self-assessment tool is a step-by-step 

utility-tailored guide to help utility 

 

4 The Effective Utility Management Primer and other resources are available on the Water EUM website, www.watereum.org. 

Ten Attributes of Effectively Managed 

Water-sector Utilities

1. Product Quality

2. Customer Satisfaction

3. Employee and Leadership Development

4. Operational Optimization

5. Financial Viability

6. Infrastructure Viability

7. Operational Resiliency

8. Community Sustainability

9. Water Resource Adequacy

10. Stakeholder Understanding and Support
Resource Guide to Effective Utility Management and Lean | 8

managers assess their performance across the EUM Attributes and identify where to begin 

improvement efforts. 

Many water-sector utilities have found that the Primer makes a significant contribution to their 

improvement efforts and serves as benchmarking reference point. The EUM framework allows utilities 

to develop a clear understanding of their strengths, identify opportunities for improvement, and balance 

between internal and external priorities. Many utilities have incorporated the EUM Attributes into their 

strategic-planning efforts or used them to initiate a strategic-planning process. Columbus Water Works

in Georgia, for example, used the Primer as a framework for workshops to review its long-term strategic 

plan. Gwinnett County Utilities in Georgia used the Primer to review its priorities and incorporated the 

10 attributes into the countywide balanced scorecard process-improvement tool. For more information, 

resources, and case studies on EUM, see the Water EUM: Effective Utility Management website 

(www.watereum.org). 

Metropolitan Sewer District of 

Greater Cincinnati, Ohio

• The Cincinnati MSD formed cross-functional, 

interdivisional teams to analyze its financial 

processes using Lean.

• The utility developed better work methods; 

eliminated redundant payments, paperwork, 

and approvals; and, as a result, reduced 

processing time (touch time) by 26 percent 

and total lead time by 38 percent. 

• Permit and sampling fees paid by industrial 

wastewater users was also reduced from five 

payments a year to one—freeing up millions 

of dollars in increased cash flow and greatly 

reducing the administrative burden. 

Source: TechSolve Case Study, www.techsolve.org. 

What Is Lean?

Lean refers to an improvement approach and 

set of methods that seek to eliminate nonvalue-added activity or “waste.” Waste in this

context refers to any inefficiency in resource 

use and deployment (often the mnemonic 

“DOWNTIME” is used to identify Lean wastes; 

see table below). While Lean methods 

emerged in a manufacturing context, they are 

designed for use in a wide variety of contexts 

and have now been widely embraced by 

numerous sectors, including water-sector 

utilities. For example, water-sector utilities 

have used Lean tools to streamline internal 

human resource processes, organize and load 

repair trucks more efficiently, and reduce 

variation and optimize the process for 

biological excess phosphorus removal. 
Resource Guide to Effective Utility Management and Lean | 9

Table 1: Process Wastes Eliminated by Lean

Waste Examples

Defects Errors, mistakes, and rework (e.g., change orders, billing errors)

Overproduction Processing too soon or too much (e.g., multiple forms with same information, 

processing orders ahead)

Waiting Employees or customers waiting (e.g., customers waiting to be served, system or 

equipment downtime)

Non-utilized or underutilized resources/talent

Employees not leveraged to their own potential (e.g., staff not cross trained, unused 

employee suggestions)

Transportation Movement of items more than required (e.g., multiple document handoffs, inefficient 

layout of collection and distribution systems)

Inventory Holding more inventory (chemicals, office supplies, email, etc.) than required

Motion Movement of people or machinery that does not add value (e.g., wasted time & 

motion trying to find tools)

Excess Processing Doing more “work” or processing than is required (e.g., data re-entry, multiple 

approvals, cumbersome processes, unused reports)

“Lean forces you in a deliberate and 

logical way to evaluate a process. You 

have to walk through step-by-step and 

evaluate areas that are wasteful and 

refine them. Lean shows you how to do 

things better, more quickly, and more 

efficiently.”

– Gwendolyn Ruff, Vice President, Strategic 

Planning and Employee Services, Columbus 

Water Works, Georgia

Lean is implemented in short “bursts” of activity 

(e.g., 2-5 day events) and emphasizes actions that 

can take place and show results relatively 

quickly.5

 By eliminating wasted time and 

resources, Lean allows utilities to redirect efforts 

to higher-priority activities related to their core 

mission. In many ways, Lean is “common sense 

uncommonly applied.” Key Lean principles 

include:

• Focus on the customer

• Reduce the complexity of processes

• Use metrics and visual controls to provide 

rapid feedback to improve real-time 

decision-making

• Involve employees in continual improvement and problem-solving activities

• Use a whole-systems perspective that seeks to optimize processes across multiple goals.

 

5 Sometimes Lean events are called kaizen “blitz” events for this reason; kaizen refers to continual improvement.
Resource Guide to Effective Utility Management and Lean | 10

Lean and “Jargon”

Within the process-improvement world, it is easy to get lost in terminology. There are a myriad of 

tools, philosophies, and terms, and it can be difficult to track which are useful and which are just the 

latest “flavor of the month.” However, Lean does not need to be complicated. Lean tools are just 

structured approaches for simplifying processes and reducing wastes. When you hear of an 

organization or agency being “leaned,” what it is really doing is becoming more efficient. Once 

leaned, an organization can focus its time, resources, and staff on its most important priorities.

Connections Between Lean and Effective Utility Management

The EUM Attributes help water-sector utilities assess their operations and identify what outcomes they 

want to achieve. Lean methods can provide the how to help utilities achieve the outcomes. Many 

water-sector utilities have found that Lean is a way for them to take their internal strategies to a new 

level. For example, the EUM Attributes can be used as a benchmark to ensure that utilities strategies 

are on task with priorities. Lean can help a utility stay focused, quantify improvements, and become 

more efficient. The table below illustrates connections between the EUM Attributes and Lean methods.

Table 2: Effective Utility Management Attributes and Lean Connections

Effective Utility Management Attributes Lean Connections

Product Quality

• Complies with regulatory and reliability 

requirements.

• Consistent with customer, public health, and 

ecological needs.

• Lean methods reduce errors and rework in processes, 

thereby improving product quality and customer 

service. 

• Lean also supports improvements in product quality 

and environmental outcomes through root-cause 

analysis.

Customer Satisfaction 

• Provides reliable, responsive, and affordable 

services.

• Receives timely customer feedback.

• Responsive to customer needs and emergencies.

• Lean can help identify ways to reduce inefficiencies 

and allow workers to better serve customers. 

• Lean efforts can help identify and implement ways to 

decrease time to perform utility services (e.g., service 

calls) and reduce costs that affect customer rates. 

Employee and Leadership Development

• Recruits and retains competent workforce.

• Collaborative organization dedicated to continual 

learning and improvement.

• Employee institutional knowledge retained and 

improved.

• Opportunities for professional and leadership 

development.

• Integrated and well-coordinated senior 

leadership team.

• Lean methods encourage the engagement of all levels 

of employees in Lean events and waste-elimination 

activities. Training is also integrated into Lean 

methods, such as training on the first day of Lean 

events. 

• Lean focuses heavily on developing the problemsolving and leadership capacity of its employees. 

• Lean tools such as policy deployment can support 

strategic planning by linking organizational objectives 

with employee performance metrics and job 

responsibilities.
Resource Guide to Effective Utility Management and Lean | 11

Effective Utility Management Attributes Lean Connections

Operational Optimization 

• Ongoing performance improvements.

• Minimizes resource use and loss from day-to-day 

operations.

• Awareness and timely adoption of operational 

and technology improvements.

• Lean has various tools for identifying sources of 

variation and inefficiency in the use of resources and 

time and implementation tools for optimizing 

performance. 

• The tools range in sophistication, but many are simple, 

visual, and can be implemented across utilities on 

many types of processes (administrative, 

maintenance, utility services, production and 

treatment processes, etc.).

Financial Viability 

• Understands full life-cycle cost of utility.

• Effective balance between long-term debt, asset 

values, operations and maintenance 

expenditures, and operating revenues.

• Predictable and adequate rates.

• One of the most frequently cited benefits achieved 

from Lean events is cost savings. 

• Cost savings and avoidance are realized from process 

changes allowing utilities to avoid investing in costly 

new controls and increasing machinery and process 

efficiency. 

Infrastructure Stability 

• Understands the condition and costs associated 

with critical infrastructure assets.

• Maintains and enhances assets over the longterm at the lowest possible life-cycle cost and 

acceptable risk.

• Repair efforts are coordinated within the 

community to minimize disruptions.

• Lean methods can help utilities increase the capacity 

of existing systems, thereby reducing the pressure or 

need for additional infrastructure investments. 

• Lean tools help operators understand the operational 

and maintenance performance, capacity, and costs of 

infrastructure assets. This enables the optimization of 

existing capacity (and in this way can be a strong tool 

in support of utility asset management programs).

Operational Resiliency 

• Staff work together to anticipate, mitigate, and 

avoid problems.

• Proactively establishes tolerance levels and 

effectively manages risks (including legal, 

regulatory, financial, environmental, safety, 

security, and natural disaster-related).

• Lean supports a neat, orderly workplace that 

minimizes safety hazards, compliance problems, and 

risks. 

• Lean establishes and advances a culture of pro-actively 

identifying and addressing potential safety problems. 

• Lean promotes increased efficiency and reduction of 

waste through a variety of methods, including Lean 

events, 5S, standard work, and visual controls. 

Community Sustainability 

• Attentive to impacts on community and 

watershed health and welfare.

• Operations enhance natural environment.

• Efficiently use water and energy resources; 

promote economic vitality; and engender overall 

community improvement.

• Maintain and enhance ecological and community 

sustainability including pollution prevention, 

watershed, and source water protection.

• Community sustainability encompasses a wide range 

of activities, all of which Lean can address directly or 

are often experienced as ancillary benefits to a Lean 

event. 

• Lean can help utilities develop tools to eliminate nonvalue added activities and allow utilities to focus on 

“mission critical” work. 

• Lean can also promote efficient use of water, 

chemicals, and energy by reducing over-processing 

and other wastes. 

• In tandem with activities to promote financial viability, 

utilities can use Lean methods to address the needs of 

specific customer groups, such as disadvantaged 

households.
Resource Guide to Effective Utility Management and Lean | 12

Effective Utility Management Attributes Lean Connections

Water Resource Adequacy 

• Ensures water availability through long-term 

resource supply and demand analysis, 

conservation, and public education.

• Manages operations to provide for long-term

aquifer and surface water sustainability and 

replenishment.

• Lean methods can help utilities conduct processoptimization exercises that either focus on 

conservation or include conservation as an ancillary 

benefit that comes with increased efficiency and 

reduction of waste. 

Stakeholder Understanding and Support 

• Engenders understanding and support from 

oversight bodies, community and watershed 

interests, and regulatory bodies for service levels, 

rate structures, operating budgets, capital 

improvement programs, and risk management 

decisions.

• Actively involves stakeholders in the decisions 

that will affect them.

• Lean is focused on meeting customer needs, and often 

involves customers and/or stakeholders in Lean events 

(e.g., Lean events often include up to a third of 

participants from outside the process or organization). 

• Involving those who are affected by a process in Lean 

efforts can provide a valuable perspective and 

engender greater understanding and support. 

With EUM as the framework for charting improvement priorities, water-sector utilities can use practical 

Lean implementation tools to achieve the goals of the EUM Attributes. The next chapter discusses a 

range of specific Lean tools and how they relate to water-sector utilities.
Resource Guide to Effective Utility Management and Lean | 13

Chapter 3: How Lean Works: Lean and Six Sigma Methods, 

Utility Applications, and Effective Utility Management 

IN THIS CHAPTER

 Introduction to Lean and Six Sigma methods

 Key Lean and Six Sigma methods relevant to 

water-sector utilities

1. Standard work

2. 5S (or 5S+Safety)

3. Lean Events

4. Total Productive Maintenance (TPM)

5. Six Sigma 

 Finding Lean methods to meet your effective 

utility management goals

 

Introduction to Lean and Six Sigma Methods

Lean provides proven, implementation-based 

methods for making significant operational 

improvements at utilities and engaging employees 

in continual improvement efforts. The EUM 

Attributes and a utility’s strategic plan sets the 

direction and goals for utility improvement efforts, 

while Lean and Six Sigma methods offer “how to” 

techniques to make implementation happen and 

deliver results. These methods can make it easier 

for employees to: 

• Identify waste and inefficiency

• Determine the root causes of problems

• Make changes that improve product and 

service quality, reduce time and costs, and enhance customer satisfaction

The Toyota Production System, upon which the term “Lean” was coined, relies on a variety of methods 

to support the philosophy of “kaizen,” or continuous improvement.6

 While some of these Lean methods 

are more applicable for manufacturing contexts, many methods have proven highly useful for water and 

wastewater utilities. These methods include the five-step “5S” method for cleaning and organizing 

workspaces, standard work for formalizing efficient work practices, and Lean kaizen events for making 

rapid improvements to a process in a 2-5 day period. Along with formal methods, Lean also encourages 

employees to find “waste” and improvement opportunities in their everyday work, promoting a culture 

of continual improvement. For complex problems, the statistical tools of “Six Sigma,” an improvement 

 

6 Kaizen is a combination of two Japanese words that loosely translated means to take apart and make better.
Resource Guide to Effective Utility Management and Lean | 14

“The EUM Self Assessment is a good 

tool for prioritizing your utility’s goals 

and initiatives – but it only makes a 

difference if you then take action. 

That’s where Lean fits in.” 

– Ed McCormick, Manager, Wastewater 

Engineering, East Bay Municipal Utility 

District, California

approach developed by Motorola, provide a 

structured system for eliminating variation and 

defects. Many organizations combine Lean and 

Six Sigma toolboxes as “Lean Six Sigma,” or use 

the overall umbrella of “Lean” or an organizationspecific name for the process improvement 

program.

Lean and Six Sigma concepts and tools apply 

across all types of water-sector utility processes 

and operations. This includes utility plant 

operations and maintenance processes, service 

delivery processes, transactional and office processes, and physical space improvements. Lean and Six 

Sigma process improvements help utilities with key EUM Attributes including operational optimization, 

financial viability, customer satisfaction, infrastructure stability, and operational resiliency. 

Tips from Water-Sector Utilities —How to Talk About Lean and Six Sigma

• Staff may be turned off by Lean and Six Sigma terms; address this by informing staff about the 

nature of improvement efforts at the outset of the process. Adapt the terminology if needed.

• A communication strategy can be key to getting staff buy-in. Explain what you are doing and 

what you hope to achieve—get staff invested in the project and the outcomes.

• It takes communication—from start to finish and top to bottom—and lots of “boots on the 

ground” time to make change happen.

Key Lean and Six Sigma Methods Relevant to Water-Sector Utilities

To illustrate the range of ways that utilities can use Lean and Six Sigma methods to make improvements 

in the EUM Attributes, we’ve selected and profiled several commonly used methods that are highly 

relevant to water-sector utilities. Table 3 below provides an overview of these methods, with 

information on their improvement focus and example applications. The methods range from those that 

apply to individual tasks (standard work) or workspaces (5S) to those that address complex problems 

involving multiple variables (Six Sigma). While these are not all the methods utilities may use to work 

towards the EUM Attributes, they cover a spectrum of water-sector utility applications and include the 

most commonly implemented Lean methods. Each of these methods is also further described below.
Resource Guide to Effective Utility Management and Lean | 15

Table 3: Overview of Lean and Six Sigma Methods and Their Applications

Method Goal and Focus of Improvement Examples

Standard Work Document the best way to perform 

a task/operation to make it easy to 

work efficiently and effectively

Step-by-step and visual documentation of processes for 

operating facility equipment, emergency response 

processes, compliance monitoring, job performance 

standards

5S 

(or 5S+Safety) 

Improve the organization, 

cleanliness, safety, and efficiency of 

work areas

Maintenance and repair truck layout, organization of 

chemical supplies, desk organization

Lean Event (e.g., 

Kaizen Event)

Eliminate inefficiency and non-value 

added activity (waste) in repeatable 

processes in a short time period

Reducing time to respond to service delivery calls or 

back-ups; improving billing, contracting, or hiring 

processes 

Total Productive 

Maintenance 

(TPM)

Integrate effective maintenance 

practices into all employees’ work to 

minimize breakdowns, accidents, 

and other losses

Wastewater treatment plant operator practices, such as 

drying operations in the solids handling area; 

monitoring, inspecting, and adjusting pumps, motors, 

generators, air compressors, and other plant equipment

Six Sigma Eliminate variation or defects in 

processes or address complex 

problems using statistical analysis

Optimizing plant digester operations, identifying root 

causes of effluent variations or sanitary sewer 

overflows, optimizing the use of chemical disinfectants

Lean and Six Sigma Method Profiles

In the method profiles below, we define each of these five key methods and describe how they are 

implemented, why they are useful for EUM, and water-sector utility examples.

Standard Work

Definition: Standard work is a documentation of the best way (as currently known) to perform an 

operation; it is also known as standard operating procedures. Lean standard work often incorporates 

pictures, color-coding, and/or other visual controls to make it easy to follow.

Implementation Process: Organizations develop standard work to document the proper way to 

perform an operation or task and make it easy for workers to do the task 

correctly. (Standard work can be created for an entire process, or it can 

document the specific steps for each part of the process, such as standard 

work for operating a piece of equipment.) Lean teams may produce 

standard work through a process-improvement project (e.g., a Lean event 

could create a new report template) or through other means. In Lean, 

standard work serves a key role in the continual improvement process; 

once standard work is documented, employees can use that as the starting 

point for further improvement efforts. Standard work can also make it 

easier for new employees to efficiently undertake their new duties. 

Standard work often includes process maps or flow charts, diagrams, 
Resource Guide to Effective Utility Management and Lean | 16

reference tables, and/or other visuals to make it easy for employees to 

follow the correct procedures. Developing the standard work with the 

people who actually use it, evaluating it “in the field,” improving the 

documented practices over time, and reviewing it in regular audits are 

some best practices for standard work.

Why the Method is 

Useful for EUM: Standard work makes it easier for employees to work in an effective, 

efficient, safe, and compliant way. Consistent practices minimize errors 

and other problems. Standard work also eliminates reliance on “tribal 

knowledge,” and makes utilities more resilient and flexible to address 

utility needs even if key staff leave or are missing. Standard work can be 

applied to all utility planning, operations, and maintenance activities, so it 

supports many EUM Attributes, including product quality, operational 

optimization, customer satisfaction, operational resiliency, and 

infrastructure stability.

Example Water-Sector Utility Applications:

• Union Sanitary District in California has dozens of employee-developed standard operating 

procedures that cover plant operations and maintenance, collection services, and safety 

practices. These are very important for product quality and operational optimization. Often 

when employees develop standard work documentation, they find that they may not have been 

doing something as uniformly as they believed or that they had been doing something 

incorrectly or inefficiently. 

– During one project to standardize procedures, for example, Union Sanitary District found it 

had been discarding Bio-Cell filters for the aeration blowers long before they were due for 

replacement. 

– While they were developing the first plant procedure module, utility employees discovered 

that incorrect gauges had been installed to measure head loss across the filters and that a 

practice had evolved to replace the filters based solely on a visual observation that the 

filters were dirty.

– Once the gauges were replaced, the utility was able to accurately measure head loss and 

use the data to determine when a filter change was needed. 

– With these improvements to change and standardize its filter-replacement process, Union 

Sanitary District was able to save thousands of dollars. 

• In its efforts to improve a disinfection process, Charleston Water Services established guides, 

standard operating procedures, and task instructions for calibrating instruments, monitoring 

processes, and adjusting chemical dosages. The utility has over 2,000 standard operating 

procedures and an organization-wide expectation or culture of using and developing standard 

procedures. These standard procedures enhanced operational optimization, as they helped 

reduce variation and costs in the process. (See the case study in Appendix C.)
Resource Guide to Effective Utility Management and Lean | 17

• The City of Palm Bay has used standardized 10-paragraph templates for standard operating 

procedures to promote consistency, replicability, interoperability, and quality control 

throughout the organization. This template supports document and operational control 

standards of the City’s environmental management system. Palm Bay Utilities has also 

developed a standard form for documenting process-improvement activities to support its 

employee and leadership development efforts. (See the case study in Appendix C.)

5S or 5S+Safety

Definition: 5S is a five-step process to develop and maintain a clean, neat, safe, and orderly work area. 

Implementation Process: 5S is implemented in the following five steps: 

1. Sort (organize tools and materials, retaining only what is essential)

2. Set in order (arrange and label items in an order that maximizes 

workflow) 

3. Shine (regularly straighten and tidy workspaces and restore items to 

their place)

4. Standardize (use consistent organization for workspaces, and perform

the same procedures for maintaining the first three Ss) 

5. Sustain (maintain and review standards to ensure they continue to be 

implemented)

Some organizations (including Palm Bay Utilities) add a 6th “S” for safety 

(eliminate workplace safety hazards and maintain a safe work 

environment), making it 5S+Safety. 

Depending on the scale of the project, a 5S project can be conducted in as 

little time as a day or less, by a team or by an individual. Once an area has 

been organized and cleaned according the 5S principles, employees then 

maintain it as part of daily 5S activities and periodic 5S audits.

Why the Method is 

Useful for EUM: 5S is particularly effective for improving the efficiency and organization of

equipment, materials, and work areas. Well-organized and uncluttered 

work areas reduce safety hazards and accidents, and make spills and leaks 

easy to detect and fix. 5S is very helpful for inventory control, and helps 

utilities avoid accumulation of off-spec materials. With 5S, workers also 

spend less time looking for tools and can focus more time on important 

tasks. Key EUM Attributes that 5S supports include operational resiliency 

and operational optimization. It is also a very effective tool for employee 
Resource Guide to Effective Utility Management and Lean | 18

engagement because of its hands-on, practical focus and easily 

recognizable results so can support employee and leadership development.

Example Water-Sector Utility Applications:

• JEA and Irving Water Utilities both used the 5S method to improve the efficiency and 

organization of materials stored on maintenance trucks. Teams of employees evaluated the 

issues with the trucks, and brainstormed and implemented solutions that would make their jobs 

easier, safer, and more ergonomically correct, as well as reduce the time to perform the work. 

Improvements included eliminating unnecessary materials, standardizing the materials stored 

on trucks, adding labels and inventory sheets, and other changes. The results for these efforts, 

affecting EUM Attributes including operational optimization, customer satisfaction, and 

operational resiliency, are noted in Chapter 1. (Photos from the JEA 5S truck project are in 

Figure 1; the full case study is available at 

http://www.epa.gov/lean/environment/studies/jea.pdf.) 

Figure 1: 5S Before and After Photos

Before 5S: Tools Piled Together fter 5S: Tools Sorted, Organized, and Stored in Labeled 

ompartments on the Water Maintenance Truck

A

C
Resource Guide to Effective Utility Management and Lean | 19

Lean Event 

Definition: Lean events are 2-5 day periods when a cross-functional team of employees analyzes and 

improves a process. Two common types of Lean events are value-stream mapping events and kaizen 

events. Value-stream mapping events focus on prioritizing future improvement projects and generally 

have a larger scope, such as all activities in a service process or product line,7 while kaizen events focus 

on identifying and implementing process changes.

Implementation Process: Along with ongoing improvement activities, Lean is implemented in short 

bursts of activity known as “events.” There are three phases to Lean 

events: 

1. Planning and preparation, which includes forming the team, identifying 

roles and responsibilities, scoping the event and developing the 

charter, making logistical arrangements, and pre-event data collection; 

2. The Lean event, in which a cross-functional team of about 6-15 people 

analyze and map the current process, brainstorm solutions and 

develop a new “future state” process map, start making process 

changes, develop a plan for implementing the new process, and hold a 

report-out presentation; and 

3. Implementation and follow-up, in which the organization implements 

the new process based on the process changes identified in the event. 

Both kaizen events and value-stream mapping events include process 

mapping, although the emphasis of the events varies (see Figures 2-4 

below). In value stream mapping events, the focus is on identifying large 

sources of inefficiency and future improvement projects. Value stream 

mapping events will often name specific problems or projects that can be 

targets of kaizen events. Kaizen events are used to both implement and 

plan specific changes to improve a process (e.g., develop standard work for 

a process, implement 5S in an area, etc.). The goal is to begin 

implementation of the new process the Monday after the event. 

Sometimes organizations use a combined approach of doing value-stream 

mapping in kaizen events to gain a big-picture understanding of the 

process, but also identify and work on specific implementation actions. 

Appendix D includes a Lean event charter template.

A key emphasis of Lean events is on real-time measurement of process 

data to inform improvement efforts. In Lean events, the primary focus is 

on calculating time spent in the current process, and then estimating the 

 

7 A “value stream” refers to all activities involved in producing a product or delivering a service to a customer, from start to finish.
Resource Guide to Effective Utility Management and Lean | 20

benefits (e.g., dollars, time, etc.) from the improvement projects. Using 

standard work to document the new process changes and devoting 

systematic attention to follow-up (e.g., weekly standup team meetings) 

helps ensure that teams meet their Lean implementation goals. 

Figure 2: 5-day Kaizen Event Agenda Outline 

Day 1 

Training Day 

Begin mapping 

and measuring 

current work 

process 

Day 2 

Discovery Day 

Measure and 

analyze current 

work process 

 

Day 3 

Do Day 

Create and 

map new 

process 

Day 4 

 Do, Re-Do, 

 Document Day 

Finalize new 

process design, 

estimate benefits, 

develop action plan 

Day 5 

Celebration 

Day 

Present results 

and celebrate 

Figure 3: 3-day Value Stream Mapping Event Agenda Outline 

Day 1 

Training & 

Current State Map 

Value stream mapping training; 

map & analyze the current state 

of the process 

Day 2 

Future State Map & 

Implementation Plan 

Map a desired future state 

for the process; develop an 

implementation plan 

Day 3 

Celebration Day 

Present results and celebrate 

Why the Method is 

Useful for EUM: Lean events allow rapid action to make progress on EUM Attribute areas 

identified through a utility’s strategic plan, the EUM Self Assessment, or 

other means. They are a vehicle for using a variety of problem-solving tools 

(including process mapping, root-cause analysis, and direct observation and 

measurement) and engaging employee creativity to improve processes in a 

short period. Chief among the gains from Lean events are operational 

optimization, customer satisfaction, and financial viability, as Lean events 

focus on eliminating inefficient use of time and resources (e.g., unneeded 

process steps, rework, waiting time, process complexity, etc.) to meet 

customer needs. 
Resource Guide to Effective Utility Management and Lean | 21

Example Water-Sector Utility Applications: 

• Columbus Water Works, Georgia implemented a Lean event in its Human Resources 

department that reviewed three departmental processes: processing of payroll status reports, 

new hire process, and new employee orientation. The event contributed to financial viability 

and operational optimization by reducing the process time by at least two days (for both the 

payroll status report and new hire processes), freeing staff time to work on other priorities.

• Gwinnett County, Georgia trained people on Lean methods and assigned them to facilitate 

kaizen events based on priorities identified in the utility’s EUM Self Assessment. The events 

focus on customer service dispatch, meter service and repair, and the work order review 

process for infrastructure. The utility expects these to have benefits for financial viability, 

customer satisfaction, and infrastructure stability. Gwinnett County also conducted a Lean 

event on the commercial backflow process that had impressive expected results for reduced 

administrative costs and processing time. 

Figure 4: Current State Process Map from a Lean Event
Resource Guide to Effective Utility Management and Lean | 22

Total Productive Maintenance (TPM)

Definition: TPM is a method that engages all workers in maximizing the effectiveness of equipment, 

with the goal of preventing breakdowns, accidents, and other losses. Like utility asset management 

initiatives, which aim to optimize the life of assets, TPM emphasizes preventative maintenance and 

inspection practices along with predictive maintenance. However, TPM also integrates maintenance and 

problem-solving activities into the responsibilities of every operator, rather than reserving them solely for 

maintenance staff.8

Implementation Process: When implementing TPM, organizations typically focus on four areas: (1) 

efficient equipment; (2) effective maintenance; (3) “mistake-proofing” 

equipment, or the application of fail-safe techniques to make errors 

impossible or easy to spot and correct;9 and (4) safety management. To 

ensure efficient equipment, operators work to prevent six major types of 

losses: breakdown losses, set-up and adjustment losses, stoppage losses, 

speed losses, quality defect losses, and equipment and capital defect 

losses. For example, a stoppage or speed loss could be a stopped or slowly 

operating pump, and a quality defect loss at a wastewater treatment plant 

could be solids composition inconsistent with the intended disposition 

method (e.g., overly smelly solids intended for land application). The 

metric for evaluating equipment performance is overall equipment 

effectiveness (OEE), which depends on the availability and performance of 

the equipment and the quality of the output. 

TPM trains operators and maintenance/electrical technicians to integrate 

autonomous maintenance (including inspections, simple repairs, parts 

replacement, lubrication, etc.) and safety management into their daily 

work. Finally, modifying equipment to incorporate “mistake-proofing” 

devices facilitates effective equipment operations. Operators and 

maintenance/electrical technicians need to know what the equipment is 

supposed to do and its capabilities, how the systems work, and be able to 

determine whether it is the system or the equipment that needs attention. 

TPM is implemented on an ongoing basis, although specific TPM projects 

(e.g., analyzing equipment losses and implementing improvements) can be 

addressed through Lean events.

Why the Method is 

Useful for EUM: TPM helps water-sector utilities optimize the use of their assets. Mistakeproofing equipment and the preventative and corrective maintenance 

activities of operators encouraged by TPM can ensure equipment operates 

 

8 For more information on how TPM and asset management compare, see Terry Wiseman, Vesta Partners, “How is TPM Different?” Adams 

Business Media, 2000, http://vestapartners.com/worxcms_files/HowIsTPMDifferent.pdf (accessed 26 June 2012). 9 The Japanese term for mistake-proofing is poka-yoke.
Resource Guide to Effective Utility Management and Lean | 23

as intended, prevent failures or breakdowns, and extend the useful life of 

assets. By involving every operator in TPM inspection, cleaning, 

maintenance, and problem-solving activities, the benefits from improved 

asset management are multiplied. Key relevant EUM Attributes include 

infrastructure stability and operational resiliency. 

Example Water-Sector Utility Applications: 

• India’s first and only private urban infrastructure utility, Jamshedpur Utilities and Services 

Company (JUSCO), has used TPM since 2004 to improve the efficiency and effectiveness of its 

water and wastewater management operations. In a press release, the company reported 

“immensely” benefiting from the TPM methodology in reducing breakdowns, minimizing losses, 

reducing customer complaints, and improving process efficiencies.10 JUSCO won a 2008 TPM 

Excellence Award by the Japan Institute of Plant Management for these operational 

optimization and customer satisfaction improvement efforts, and it was the first Indian utility to 

win a High Commendation Award from Global Water Intelligence.11

Six Sigma

Definition: Six Sigma is an improvement approach and set of statistical tools designed to eliminate 

defects and variation. The term “Six Sigma” refers to the concept of eliminating defects to the level of six 

standard deviations, or 3.4 defects per million. When combined with Lean tools, the methodology is 

often called “Lean Six Sigma.”

Implementation Process: Six Sigma projects are implemented through a five-phase process known as 

Define-Measure-Analyze-Improve-Control, or DMAIC: 

1. In the Define phase, the Six Sigma project team defines the problem 

statement. 

2. In the Measure phase, the team gathers information about the process 

and identifies problem areas. 

3. In the Analyze phase, the team analyzes the root causes of quality 

problems, using qualitative and quantitative analytical tools such as 

“fishbone” root-cause analysis diagrams, Pareto charts, and Failure 

Mode Effects Analysis. 

4. In the Improve phase, the team implements changes to improve the 

process and conduct statistical assessments to verify the results. 

5. In the Control phase, the team institutionalizes the process changes 

and monitors implementation over time. 

 

10 Tata Group, “JUSCO Conferred TPM Excellence Award – 2008 by Japan Institute of Plant Maintenance,” Press release, 29 Jan 2009, 

http://www.tata.com/company/releases/inside.aspx?artid=1XJfT6TNVjs= (accessed 18 June 2012). 11 Gayatri Kamath, “The Business of Urbanity: Jusco, India’s First and Only Private Sector Comprehensive Urban Infrastructure Services Provider, 

Is Winning Contracts All Over India, and Awards and Accolades from around the World,” Tata Group website, Jan 2010, 

www.tata.com/company/articles/inside.aspx?artid=r4XuV0EAk5Q= (accessed 24 May 2012).
Resource Guide to Effective Utility Management and Lean | 24

Individuals trained in Six Sigma (or Lean and Six Sigma) methods are called 

“green belts” or “black belts” indicating their level or training and 

experience, with black belts having more experience. Several templates for 

Six Sigma projects are included in Appendix D, including a Plan-Do-CheckAct worksheet version of the Six Sigma process, a root-cause analysis 

“fishbone” diagram, and a SIPOC (Suppliers-Inputs-Process-OutputsCustomers) process definition sheet.

Why the Method is 

Useful for EUM: Like Lean events, Six Sigma can be applied to a range of utility processes 

and operations; however, the statistical tools of Six Sigma are most 

appropriate for addressing complex problems related to operational 

optimization and product quality. The Six Sigma tools and the DMAIC 

framework help utilities pinpoint and address root causes of errors or 

variation, and then systematically optimize operations and improve 

product quality (e.g., consistency of plant outputs). Six Sigma projects can 

support several EUM Attributes, including product quality, operational 

optimization, financial viability, and customer satisfaction.

Example Water-Sector Applications:

• JEA used Six Sigma to analyze the root causes of variations in wastewater treatment plant 

discharges of nitrogen to the St. Johns River and develop a solution to reduce peak discharges. 

Through data analysis, the team discovered that when a nearby fish-processing facility halted its 

discharge of fish by-products to the collection system each weekend, the treatment plant 

microbes would die, and nitrogen levels would spike. The team brainstormed and developed a 

solution for feeding the microbes over the weekend by using a byproduct from the production 

of biodiesel. JEA implemented the changes, and they improved discharge (product) quality and 

enhanced financial viability by reducing 74 tons of nitrogen discharges annually and by allowing 

JEA to meet new regulatory requirements without investing in costly new treatment technology. 

(For the full case study, see EPA’s website at www.epa.gov/lean/environment/studies/jea.pdf.)

• Charleston Water Services used Six Sigma methods to reduce variation in its disinfection 

process and meet regulatory requirements. The improvements the utility identified optimized 

operations and contributed to financial viability by reducing chemical costs by $50,000 per year 

and labor costs by $50,000 per year. The utility has trained all department directors and 

assistant department directors on Lean and Six Sigma. (See the case study in Appendix C.)

• In a Six Sigma DMAIC process, Pompano Beach Utilities studied the residential water reuse 

connection process to understand the reasons for the low rate of customer participation and 

develop strategies to improve connection rates. The utility used analytic tools including a 

Critical-to-Customer analysis to categorize issues identified by customers, process mapping to 

better understand the process and map out a new future process, and time-series data plots to 

track performance over time and address issues when they arise. The new program has 

improved water resource adequacy and community sustainability by increasing customer 
Resource Guide to Effective Utility Management and Lean | 25

utilization of reuse water, resulting in an estimated 92.4 million gallons of water saved in 2011–

13 (if all planned connections are accomplished). (See the case study in Appendix C.)

Lean & Six Sigma Templates in Appendix D

• Lean Event Charter

• Six Sigma Plan-Do-Check-Act Project Worksheet 

• Root Cause Analysis “Fishbone” Diagram

• SIPOC (Suppliers-Inputs-Process-Outputs-Customers) Process Definition Sheet

• Process Improvement Form

Finding Lean Methods to Meet Your Effective Utility Management Goals

There is no “one size fits all” approach to implementing Lean at your utility. The key is to find tools and 

approaches that will support the EUM Attributes your utility has identified as priorities and to 

implement the tools in a way that will work for your organizational culture and needs. It is also 

important to remember that tools are only one aspect of Lean implementation—engaging people in 

Lean thinking and continuous improvement is often more important to success than the specific tools 

used. Many organizations avoid specific Lean and Six Sigma terminology and/or develop new names for 

the tools, for example, but they still adopt the problem-solving approaches from the Lean methods. The 

Lean and Six Sigma methods profiled here represent some of the methods that are most relevant for 

water-sector utilities, but many other Lean and Six Sigma tools can also support improvements in EUM 

Attributes. For more information on Lean and Six Sigma, see the resources in Appendix B. The next 

chapter discusses how to get started with implementing Lean and EUM improvements at your utility.
Resource Guide to Effective Utility Management and Lean | 26

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Resource Guide to Effective Utility Management and Lean | 27

Chapter 4: Starting the Effective Utility Management 

and Lean Journey 

IN THIS CHAPTER

 Steps for getting started with EUM and 

Lean:

1. Conduct an EUM Self Assessment to 

Determine Improvement Priorities

2. Engage Leadership

3. Learn More about Lean

4. Find Technical Assistance

5. Conduct EUM and Lean 

Improvement Projects

 Facilitating long-term success with EUM 

and Lean

 Concluding thoughts

 

Steps for Getting Started with EUM and Lean

Getting started with EUM and Lean is not hard. There 

are several simple steps you can take to learn more 

and then systematically improve your utility’s 

performance and management.

1. Conduct an EUM Self Assessment to Determine 

Improvement Priorities

To begin your utility’s EUM improvement efforts, it is 

useful to have a clear picture of your utility’s most 

important priorities for change. The EUM Self 

Assessment Tool, contained in the Effective Utility 

Management Primer for Water and Wastewater 

Utilities, presents a simple five-step process for 

identifying which EUM Attributes (or outcomes) to 

focus on and then developing an improvement plan. 

With this EUM Self Assessment, your utility will:

• Candidly assess current conditions

• Rank the importance of each of the 10 EUM Attributes to your utility

• Graph the attributes to determine the importance and level of achievement

• Choose attributes to focus on

• Develop and implement an improvement plan

Doing the EUM Self Assessment can help you better delineate your utility’s top priorities and reveal 

whether you have overlooked any important areas. It also may be useful to involve others outside the 
Resource Guide to Effective Utility Management and Lean | 28

utility, such as Board members, in the EUM Self Assessment. In Figure 5, operational resiliency could be 

considered the highest priority, as it ranked the highest in importance but lowest in achievement. 

Typically, the time to consider Lean and Six Sigma will be during the development of your utility’s 

improvement plan, as Lean and Six Sigma tools are powerful means of addressing the EUM Attributes 

you’ve selected as priorities. For example, utilities such as Palm Bay Utilities, Pompano Beach Utilities, 

and Gwinnett County have used Lean and Six Sigma to target weaker performance areas identified 

through EUM assessments and associated strategic plans.

Figure 5: Sample EUM Self-Assessment Results

Once you have completed the EUM Self Assessment and identified priorities for your utility, you may 

want to explore options and tools for working on your priorities. There are many resources on Lean and 

Six Sigma that can help you select and implement tools that are appropriate for your organizational 

culture and priorities. Appendix B contains a guide to resources on EUM, Lean, and Six Sigma.

2. Engage Leadership 

After you’ve become familiar with EUM and Lean and what they can do for your utility, it is crucial to 

engage leaders and senior managers. Without leadership support, initiatives such as EUM and Lean will 

have at most limited success. It is critical that utility leaders understand and support the improvement 

priorities identified through the EUM Self Assessment and any utility strategic planning processes. 
Resource Guide to Effective Utility Management and Lean | 29

Leaders also play an important role in supporting the use of Lean methods to achieve the utility’s goals 

and progress on EUM Attributes. Specific ways that leaders can enhance EUM and Lean efforts include:

• Articulate EUM goals and the value of Lean process-improvement efforts.

• Participate in EUM and Lean efforts (e.g., EUM Self Assessment, Lean events, etc.).

• Allocate staff resources for EUM and Lean improvement efforts.

• Provide visible support for EUM and Lean improvement efforts (e.g., communicate the value of 

the efforts in writing, meetings, and other communications).

• Remove barriers to improvement that may arise during implementation.

• Monitor the progress of EUM and Lean improvement efforts, hold people accountable for 

meeting goals, and celebrate successes.

• Provide means to obtain needed technical and equipment resources for improvement efforts.

The People Who Make the Difference for EUM and Lean – Tips from Water-Sector Utilities

• Leaders: If leadership doesn’t buy in, then it won’t happen. You need management support for 

time to work on projects.

• Champions: Designate someone as the “champion” of improvement efforts. The champion is 

responsible for organizing events and holding staff accountable for improvement efforts.

• Facilitators: Establish a core group of highly trained people who can lead or facilitate 

improvement efforts.

• Team Members: 

– Be careful how you select your team—consider their personalities and skills. Choose people

who will produce outcomes.

– Involve a cross-section of your organization—from front-line workers and maintenance staff 

to mid- and upper-level managers.

3. Learn More about Lean

While it is not necessary to do extensive training before launching a Lean initiative, it is helpful to 

become more familiar with Lean methods to understand how to best use them to meet your utility’s 

EUM goals. (Due to its reliance on statistics, Six Sigma requires more expertise than other methods.) 

Key Resources for Getting Started with EUM and Lean

• Effective Utility Management: A Primer for Water and Wastewater Utilities (includes EUM SelfAssessment), www.watereum.org/resources/interactive-primer

• Lean in Government Starter Kit: How to Plan and Implement Successful Lean Initiatives at 

Environmental Agencies, Version 3.0, (includes downloadable resources), 

www.epa.gov/lean/government/starterkit

See Appendix B of this Resource Guide for additional resources on EUM and Lean. 
Resource Guide to Effective Utility Management and Lean | 30

Water-sector utilities have used a variety of strategies for learning more about Lean concepts and 

methods, including:

• Reading Lean and Six Sigma books, articles, and on-line resources (See Appendix B for an 

annotated list of resources)

• Learning from other utilities’ efforts

• Participating in formal training (classroom, on-site, and/or on-line)

• “Learning by doing” through implementation of Lean methods, including any training received 

as part of Lean events.

Tips from Water-Sector Utilities for Getting Started with EUM and Lean

Where to Start and What Tools to Use

• Lean can be as easy as understanding waste. You can start at many places; it depends on the 

readiness of the organization. 

• When considering improvement efforts, be sure to address the culture of your organization and 

what you want to change. For example, is the goal of the improvement effort to save money, to 

become a more innovative organization, or simply to find ways to improve?

• Use the tools that are most meaningful to your employees and that connect to the strategy of 

the utility.

• You can adjust the tools; you don’t have to do everything “by the book.”

“Lean can help utilities build internal capabilities 

to make improvements rather than spending a 

lot of resources on consultants.”

- Donna Wies, Quality Program Coordinator, 

Union Sanitary District, California

Lean training courses range in depth and 

length from short webinars on specialized 

topics to multi-week Lean and/or Six Sigma 

certification programs, which generally 

require participants to complete an 

improvement project. Individuals trained 

on Six Sigma (or Lean and Six Sigma) 

methods are often classified similar to 

martial arts “belts,” with “black belts” 

being able to lead more advanced improvement projects than “green belts.” It is not necessary to have 

advanced Lean or Six Sigma training or certification, but over the longer term, utilities may wish to 

develop greater in-house capability to lead improvement projects. One of the easiest and best ways to 

learn about Lean is to observe it firsthand by participating in Lean events at your utility or other 

organizations. Small utilities may want to partner on training and information exchange to reduce costs. 

There is no shortage of Lean training providers or training options. The table below describes different 

types of training providers.
Resource Guide to Effective Utility Management and Lean | 31

Table 4: Lean Training Providers

Type Description and Examples

Educational 

institutions 

University business schools and community colleges often offer courses on Lean and Six 

Sigma. Examples of university Lean programs include:*

• Georgia State University (Lean Six Sigma training and certification), 

http://robinson.gsu.edu/execed/programs/sixsigma.html

• Kent State University (Lean Six Sigma training and certification), 

www.kent.edu/leansixsigma 

• North Carolina State University Industrial Extension (Lean and Six Sigma classes, on-site 

training, and consulting support), www.ies.ncsu.edu

• San Diego State University (Lean certification program), 

www.ces.sdsu.edu/Pages/Engine.aspx?id=717 

• Villanova University (on-line Six Sigma certification program), 

www.villanovau.com/online-certificates/six-sigma.aspx 

Manufacturing 

Extension 

Partnership (MEP) 

Centers

The National Institute of Standards and Technology (NIST) has a network of non-profit MEP 

centers that provide Lean consulting and training. To find a center, see:

• www.nist.gov/mep/find-your-local-center.cfm 

Non-profit 

organizations

Several non-profit organizations promote learning on Lean, Six Sigma, and related processimprovement methods, through webinars, conferences, training courses, and on-line 

discussion forums. Examples include:*

• Lean Enterprise Institute (offers webinars, training, conferences, articles, discussion 

forums, etc.), www.lean.org 

• American Society for Quality (ASQ) Government Division (offers webinars, conferences, 

and articles), http://asq.org/gov 

• Learners TV (offers free training videos on Lean and Six Sigma), 

www.learnerstv.com/Free-Management-video-lecture-courses.htm 

• Industry Week (offers webinars, on-line training, and articles), 

www.industryweek.com/webcasts 

• Association for Manufacturing Excellence (AME), Society of Manufacturing Engineers 

(SME), Shingo Prize for Operational Excellence, and ASQ’s Lean Certification Program, 

www.sme.org/lean-certification.aspx 

Private consulting 

firms

Most private Lean consulting firms offer Lean training. Training may be provided separately 

or along with support for Lean/Six Sigma projects. 

Other options • Businesses implementing Lean in your community may be willing to allow observers to 

participate in Lean events or training sessions at their facilities. 

• An increasing number of federal, state, and local government agencies have Lean 

programs and may offer training courses and/or have downloadable resources on 

agency websites.12

*Note: This is not an exhaustive list.

 

12 For lists of government agency Lean websites, see the Quality and Productivity Improvement Center’s Lean Government website, 

http://leangovcenter.com/govweb.htm, and/or the Lean Government Wikipedia article, http://en.wikipedia.org/wiki/Lean_Government

(accessed 17 June 2012). 
Resource Guide to Effective Utility Management and Lean | 32

4. Find Technical Assistance 

Most utilities find it helpful to have technical assistance when beginning a Lean and EUM improvement 

initiative. This technical assistance can come from in-house resources—if you have staff trained in Lean 

and/or Six Sigma methods and familiar with their application in utility contexts—or from outside 

organizations. All Lean events are led by a Lean facilitator, who guides the project team throughout the 

Lean process, helping to scope events, facilitate activities and discussions during the events, and advise 

on follow-up activities. Skilled facilitation is important to the success of Lean efforts, and external 

consultant support can help utilities to generate positive results rapidly. Some utilities, such as 

Pompano Beach Utilities, have also found that consultant support can help them conduct the EUM Self 

Assessment more quickly and thoroughly than they would have without it.

Tips for Successful EUM and Lean Implementation and Follow-up from Water-Sector Utilities

Deployment, Implementation, and Follow Up

• Don’t forget to consider how you will roll out improvement efforts. Anticipate potential barriers, 

how to deploy and make improvements “stick,” and any resistance from staff.

• Clearly identify staff expectations, roles, and responsibilities for getting the work done, especially 

after Lean events end.

• Ensure staff are well versed in improvement efforts and are on board with any changes being 

made.

• Reward staff for improvement efforts.

Measuring and Evaluating Progress

• To show measurable improvement, you need a baseline. A baseline also helps identify areas to 

target and provides data that can be useful in making decisions about where to focus 

improvement efforts. Without a baseline or metrics, you cannot know what success looks like.

• Benchmarking can be a useful way to measure your progress externally. Pick benchmarking 

partners who are better than you are. 

• There may be some trial and error and disappointment, but you need to give people a chance.

• It’s all about results. When you start seeing results, then management buys in, and then it 

becomes part of the culture.

If you choose to pursue external support for Lean facilitation, there are numerous technical assistance 

providers that facilitate Lean events, including private consultants and non-profit organizations, such as 

the national network of Manufacturing Extension Partnership centers.13 When evaluating a potential 

Lean facilitator, consider the facilitator’s past experience, areas of expertise (e.g., supporting Lean in 

utility or government contexts), price, references, and availability. Costs of experienced Lean facilitators 

can range from approximately $2,000 to $3,400 per day. Talk to your utility peers about their 

 

13 For a directory of local MEP centers, see www.nist.gov/mep/find-your-local-center.cfm. 
Resource Guide to Effective Utility Management and Lean | 33

experiences with Lean facilitators to identify recommendations. After initial Lean projects, identify 

individuals who might be interested in becoming trained Lean facilitators (or Lean and Six Sigma black 

belts), so that you can decrease your reliance on external support and build internal capacity for change.

“To continually improve, people need to know 

what to do, why they are doing it, when the tasks 

are due, where the resources are, and how to 

accomplish their part of the mission.”

– Richard Bickerstaff, Strategic Business System 

Manager, Charleston Water System, South Carolina

5. Conduct EUM and Lean Improvement Projects

Common advice from public sector Lean 

practitioners to agencies considering Lean 

is to “Just Do It.” While this is simplistic, 

there is value in this perspective of pilot 

testing Lean to see how it works at your 

utility before deciding to invest heavily in 

training or launch a larger improvement 

initiative. There is no single path to 

implementing Lean. The most important 

consideration is to do what makes sense 

for your organization’s goals and culture. Lean methods can be implemented at many scales to address 

many types of problems. Consider starting with a few discrete projects that can generate “quick wins 

and then build up to address more challenging or complex problems. Lean kaizen events and the 5S 

method are good tools for engaging employees in hands-on continual improvement activities. It’s also 

important to avoid scoping your initial projects too large (be realistic about what you can accomplish in 

an event), in order to be able to make concrete progress and generate results. 

As you embark on Lean improvement projects, be sure to evaluate your success based on the EUM 

Attributes your utility identified as priorities in its EUM Self Assessment. If you are falling short of your 

objectives and targets, consider initiating one or more Lean or Six Sigma projects to address problem 

areas and further improve performance. Be sure that you also devote adequate time and attention to 

the implementation phase of current and past projects (the period after Lean events or the “Control” 

phase in Six Sigma)—often this is where process-improvement projects run into problems.

Facilitating Long-Term Success with EUM and Lean

EUM and Lean can both be described in terms of a journey or transformation. The EUM Attributes and 

Lean principles, such as elimination of inefficiency and waste, represent endpoints that utilities strive to 

achieve through improvement activities. EUM and Lean implementation can go through several phases, 

such as the following:

• Learning and improving phase, when teams learn the Lean tools and make progress through ad 

hoc projects based on the EUM Self Assessment

• Optimizing phase, when managers apply Lean more strategically and systematically to meet 

EUM and other goals
Resource Guide to Effective Utility Management and Lean | 34

• Transforming phase, when EUM and Lean become “the way we work,” and continual 

improvement is everyone’s job

“We used EUM to develop our strategic 

plan and recently used Lean techniques 

to optimize our backflow program. We 

were so impressed with the outcome as 

far as better use of staff time and 

increase in productivity that we have 

trained three people in our department 

in Lean techniques. We expect this will 

become part of our culture.” 

– Tyler Richards, Deputy Director, 

Operations and Environmental Services, 

Gwinnett County Water Resources, 

Georgia

Over time with EUM and Lean implementation, 

more staff become engaged and knowledgeable 

and there is less need for external support. The 

EUM and Lean journey can vary substantially 

based on utility conditions, context, and 

organizational support. For some utilities, the 

move from selective use of Lean tools on EUMimprovement projects to adopting a 

comprehensive continual improvement culture 

can happen relatively quickly, while other utilities 

may obtain sufficient success while remaining in 

an ad-hoc, project-specific mode of 

implementation. 

Introducing EUM and Lean does not mean that 

you should abandon the improvement efforts that 

your utility has already been doing. Rather, it is 

important to integrate EUM and Lean into your utility management improvement efforts so that 

employees see them as building from previous efforts and linking to your organization’s culture. EUM 

and Lean provide an established improvement framework and practical implementation tools for taking 

your utility improvement efforts to the next level and producing more impressive results. By 

maintaining connections to other utility management initiatives (such as an environmental management 

system), you’ll reduce employees’ sense of initiative fatigue and make it easier to incorporate any new 

concepts and tools. You may wish to adapt the Lean and Six Sigma terminology (e.g., avoid Japanese 

words) or implementation practices (e.g., adapt the structure of Lean events) to make it better fit with 

your organizational culture. 

Ultimately, success with EUM, and with Lean as a supporting implementation methodology, depends on 

the five Keys to Management Success articulated in the Effective Utility Management Primer. Lean 

supports all of the Keys; however, the practical application of Lean and Six Sigma methods, combined 

with the communications and training to make sure those methods are effectively integrated into the 

culture of the organization, relate specifically to the “Organizational Approaches” Key (see Figure 6). 
Resource Guide to Effective Utility Management and Lean | 35

Figure 6: Keys to Management Success with Effective Utility Management and Lean

Leadership

Strategic Business Planning

Organizational Approaches

Measurement

Continual Improvement 

Management Framework

Lean methods, 

communications, 

and training

• Leadership: The involvement and commitment of leadership in utility EUM improvement 

efforts is the most important factor in long-term success. See the section on “Engage 

Leadership” above for ideas on how leaders can support EUM and Lean implementation efforts.

• Strategic Business Planning: Strategic planning allows a utility to establish goals, objectives, and 

strategies, and identify specific implementation steps that will move it toward its vision. Utilities 

can use Lean and Six Sigma tools in these implementation steps.

• Organizational Approaches: Although Lean relates to most of the Keys, it is particular helpful 

for providing implementation-based strategies and tools for the “organizational approaches” 

Key to support EUM. Three aspects of a Lean organizational approach are important:

1. Lean Methods: Lean is both a toolbox and a continual improvement process. Lean methods 

actively engage employees in process-improvement activities and incorporate visual, simple 

solutions that make it easier for employees to detect and fix problems. 

2. Communications: For any change initiative, an effective communications strategy can make 

the difference between something that falters and something that takes root and grows. 

Especially during early stages of implementation, people may have many questions and 

misconceptions about Lean and what it means for their work.

3. Training: Training and capacity building are important for developing and sustaining 

process-improvement programs, such as EUM and Lean. Training on continuous 

improvement tools is critical to the successful implementation of a Lean culture. See the 

section on “Learn about Lean” above for guidance on training options to consider. 
Resource Guide to Effective Utility Management and Lean | 36

Lean and Continual Improvement: 

Clean Water Services, Oregon

• Clean Water Services encourages employees to 

eliminate different types of waste in processes 

they work on, using the Lean wastes in the 

acronym “DOWNTIME” (Defects, Overproduction, 

Waiting, Non-utilized people, Transportation, 

Inventory, Motion, Excess processing) as a guide.

• The utility has found this to be an effective tool to 

support continual improvement, as it makes it 

easy for workers to collaboratively identify 

improvement opportunities.

• For example, using Lean methods, a team 

identified improvements to the budgeting process 

that would reduce staff time from 279 to 87 hours 

(69 percent reduction).

• Measurement: Performance 

measurement is critical for 

continual improvement efforts—

it allows utilities to identify 

problem areas, evaluate 

solutions, and monitor progress 

towards the EUM Attributes. 

Lean and Six Sigma methods also 

depend on data for their success; 

Lean methods emphasize realtime data collection to assist with 

decision-making, visual displays 

of data, and evaluating potential 

process improvements based on 

analysis of process data.

• Continual Improvement 

Management Framework: Lean 

and Six Sigma approaches are 

both modeled after Dr. W. Edwards Deming’s “Plan-Do-Check-Act” continual improvement 

cycle. Both Lean, with its focus on eliminating waste, and Six Sigma, with its focus on reducing 

variability, provide structured processes for working towards utility goals and EUM Attributes. 

They are also highly compatible with environmental management systems (EMSs) based on ISO 

14001 or comparable approaches.14 For example, Palm Bay Utilities uses its ISO 14001 EMS as 

the overarching framework for all its utility management efforts including EUM and Lean (see 

the case study in Appendix C for more information). 

 

14 Public Entity EMS Resource (PEER) Centers located throughout the United States are available to assist public entities with establishing EMSs 

and developing mature continuous improvement management frameworks. For more information about PEER Centers and resources, see 

http://www.peercenter.net. 
Resource Guide to Effective Utility Management and Lean | 37

What Does It Take To Establish A Full-Scale EUM and Lean Initiative At A Utility?

Water-sector utilities involved in the development of this EUM and Lean Resource Guide identified 

five factors to consider when incorporating and establishing a full-scale EUM and Lean initiative:

• Organizational Readiness: Before launching a full-scale EUM and Lean initiative, it is critical to 

know whether your utility is ready for the type of investment involved. For example, is there 

leadership support? Do you have the appropriate management structure to support the effort? 

It may make sense to “test the waters” with several EUM and Lean projects in select areas before 

investing heavily in outside training or external facilitation support.

• Training: A successful EUM and Lean initiative will require some training. Training for managers 

can help them understand how Lean and Six Sigma can be used to improve their processes. 

Training is also useful for people who will be participating in improvement projects, with much 

more extensive training needed for Six Sigma than for Lean methods. If the utility chooses to 

build internal capacity to lead improvement projects, then it may choose to pay for Lean 

facilitator training or Lean and Six Sigma “black belt” level training.

• Time: Attending training and conducting improvement projects both take time, and that is time 

that would otherwise be used for other utility activities. Lean events typically occur over a 2-5 

day period (plus prep and follow-up time), while Six Sigma projects are implemented over a 

much longer period (e.g., a few months to a year). 

• Cost: Along with staff time for improvement activities, utilities should consider costs for training 

and technical assistance. For example, Clean Water Services has spent $40,000 on training for 16 

staff, including two staff who will be “black belt” level and several who will be “green belt” level. 

Unless utilities develop internal capacity for Lean facilitation, they may want to hire consultants 

to facilitate events. Lean facilitators typically charge $12,000–$25,000 for a five-day Lean event, 

depending on the consultant and the scope of the services.

• Return on Investment: Water-sector utilities and many other industries have seen unparalleled 

performance gains with Lean and Six Sigma methods. Clean Water Services expects to save 

hundreds of thousands of dollars from its Business Process Improvement Center of Excellence 

and its investment in Lean and Six Sigma training. JEA invested heavily in its Lean and Six Sigma 

program, with eight full-time “black belt” staff and 24 directors and vice presidents trained as 

black belts, but the program saved $579 million in 10 years.* 

*For more information, the JEA case study is available at www.epa.gov/lean/environment/studies/jea.pdf. The Clean Water Services case 

study is in Appendix C.
Resource Guide to Effective Utility Management and Lean | 38

Concluding Thoughts

We hope that this EUM and Lean Resource Guide has been helpful to you as you learn how EUM and 

Lean can support your utility’s improvement goals. The process of becoming a lean and effectively 

managed utility offers opportunities for near-term, low-intensity gains with the prospect for longerterm, sustained improvements with greater deployment of Lean methods to achieve EUM outcomes. 

We wish you success in your EUM and Lean journey.
Resource Guide to Effective Utility Management and Lean | 39

APPENDICES
Resource Guide to Effective Utility Management and Lean | 40

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Resource Guide to Effective Utility Management and Lean | 41

Appendix A: Glossary

Definitions of Effective Utility Management and Lean Terms15

15 Definition sources include: Productivity Press Development Team, LeanSpeak: The Productivity Business Improvement Directory, Productivity 

Press, 2002; Forrest W. Breyfogle III, Implementing Six Sigma: Smarter Solutions Using Statistical Methods, John Wiley & Sons, 1999; and U.S. 

EPA, Effective Utility Management: A Primer for Water and Wastewater Utilities, 2008. 

5S, 5S+S, or 6S A method used to create and maintain a clean, orderly, and safe work 

environment. 6S or 5S+S (5S+Safety) is based upon the five pillars (5S) of the 

visual workplace in the Toyota Production System, plus a pillar for safety. The 

six pillars are: Sort, Set in order, Shine, Standardize, Sustain, and Safety. 

A

Attribute A characteristic or outcome of a utility that indicates effective performance.

Asset management The systematic planning and control of a physical resource throughout its 

economic life.

Autonomous 

maintenance

A component of Total Productive Maintenance that involves operators in stepby-step activities to ensure optimum conditions of machine operation. 

B

Black belt A leader who has passed an advanced level of training in Six Sigma (or Lean Six 

Sigma). Responsible for implementing Six Sigma projects at his or her company.

C

Cause-and-Effect 

Diagram (Fishbone 

Diagram)

A technique for brainstorming and categorizing the causes and effects of 

problems. Often a common set of potential reasons for problems are identified 

as the branches in the diagram—man, methods, materials, machines, 

measurement, and environment (5M+E). Also known as a fishbone diagram or 

an Ishikawa diagram (after its originator, Karoru Ishikawa).

Critical-to-Quality 

(CTQ) 

A classification of key process output issues relevant to meeting customer 

needs. These issues are often depicted in a tree diagram.

D 

Define-MeasureAnalyze-ImproveControl (DMAIC)

The DMAIC process is used to guide implementation of Six Sigma statistical 

tools and to identify process wastes and variation.

DOWNTIME DOWNTIME is a mnemonic that refers to the eight wastes targeted by Lean: 

Defects, Overproduction, Waiting, Non-utilized employee resources, 

Transportation, Inventory, Motion, and Excess processing.

E

Effective Utility 

Management (EUM)

Management that improves products and services, increases community 

support, and ensures a strong and viable utility into the future.

 
Resource Guide to Effective Utility Management and Lean | 42

F 

Failure Mode Effect 

Analysis (FMEA)

A technique used to identify and analyze the causes of failures in processes or 

products. FMEA includes examining root causes of failures and identifying 

corrective actions to address problems. 

G

Green belt A team leader who has passed the first level of training in Six Sigma (or Lean Six 

Sigma) and who can apply this learning to lead improvement teams in his or her 

regular job. A green belt is less advanced than a black belt.

K

Kaizen Composed of the Japanese kai meaning “to take apart” and zen meaning “to 

make good,” kaizen is the incremental and continual improvement of activities 

to create more value and less non-value-adding waste. 

Kaizen event A planned and structured event lasting 1-5 days that enables a team to improve 

a process or business area. Kaizen events aim for focused identification of root 

causes of problems and quick implementation of solutions.

L

Lean An improvement approach and set of methods focused on the systematic 

elimination of non-value added activity or waste. James Womack and Daniel 

Jones coined the term “Lean” to describe the Toyota Production System.

Lean event A short period, typically 1 to 5 days, when a team of employees work together 

to implement Lean methods. Two common types of Lean events are value 

stream mapping events and kaizen events.

Lean Six Sigma The combination of Lean and Six Sigma improvement methodologies.

M

Mistake proofing Technologies and procedures designed to prevent errors and equipment 

malfunction. Also called a poka-yoke.

O

Overall Equipment 

Effectiveness (OEE)

The measure of a piece of equipment’s actual contribution as a percentage of 

its potential to add value to the value stream. Overall equipment effectiveness 

= availability x performance x quality rate x 100. 

P 

Pareto Chart This bar graph separates and displays the “critical few” from the “trivial many” 

causes of a problem. The chart arranges bars from left to right in descending 

order of importance and shows the cumulative percentage of each.

Plan-Do-Check-Act A cycle that represents four steps used in many improvement activities. It 

encompasses planning, doing, observing results, adjusting, and then repeating. 
Resource Guide to Effective Utility Management and Lean | 43

S

SIPOC (Suppliers 

Inputs Process 

Outputs Customers)

A SIPOC chart is a tool that allows users to understand the high-level flow of 

inputs and outputs in a process. The relevant components of the process are 

organized in columns for suppliers, inputs, process, outputs, and customers.

Six Sigma Six Sigma is an improvement approach and a set of statistical methods used to 

identify and reduce variation in products and processes. Motorola developed 

the terminology Six Sigma.

Standard Work An agreed upon and documented set of work procedures for performing a given 

task or operation in the best way currently known. It can also be thought of as 

an optimal combination of people, materials, and machines to ensure the 

process works efficiently and effectively.

T

Total Productive 

Maintenance (TPM)

A Lean method that focuses on optimizing the effectiveness of equipment and 

involves all employees in preventative and corrective maintenance activities.

V

Value stream All the activities (both value-added and non-value added) required to produce a 

product or deliver a service to the customer, from order to delivery, and from 

raw materials into the hands of the customer.

Value stream 

mapping

The identification of all the specific activities (material and information flow) 

occurring along the value stream for a particular product or service, usually 

represented pictorially in a value stream map. 

Visual controls The control of the workplace by the visual regulation of operations, 

performance goals, and tool and parts placement so that a process or system 

can be understood at a glance. Examples include lines outlining equipment 

locations, shadow boards for tools, data dashboards, color coding, and signs.

W

Waste In Lean, waste is defined as anything that does not add value from the 

customer’s perspective. Categories of Lean wastes include defects, 

overproduction, waiting, non-utilized employee resources, transportation, 

inventory, motion, and excess processing.
Resource Guide to Effective Utility Management and Lean | 44

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Resource Guide to Effective Utility Management and Lean | 45

Appendix B: EUM and Lean Resources

This appendix contains an annotated list of resources that can help water-sector utilities use Lean 

methods to work towards their EUM improvement goals. The resources are not endorsed by U.S. EPA, 

but are provided to be a starting point for water-sector utilities interested in learning more about EUM 

and Lean. The appendix is organized in the following categories:

A. Effective Utility Management Resources

B. Resources on Lean and Six Sigma Thinking and Process Improvement

C. Overarching Lean and Six Sigma Implementation Guides

D. Resources on Specific Lean and Six Sigma Methods

A. Effective Utility Management Resources

U.S. Environmental Protection Agency, Association of Metropolitan Water Agencies, American Public

Works Association, American Water Works Association, National Association of Clean Water Agencies, 

National Association of Water Companies, and Water Environment Federation. Effective Utility 

Management: A Primer for Water and Wastewater Utilities. (June 2008).

www.watereum.org/resources/ 

The Primer identifies “Ten Attributes of Effectively Managed Water Sector Utilities” that identify 

what effectively managed utilities strive to achieve, five “Keys to Management Success” or 

approaches that foster utility management success, and a self-assessment tool to help utilities 

assess their utilities according to the attributes and identify improvement priorities.

Effective Utility Management Case Studies. (April 2009). www.watereum.org/resources/ 

The EUM Case Studies document provides an overview of four utilities that have applied all or 

part of the Primer concepts and tools. The case studies provide concrete examples and “how 

to” assistance for utility managers applying the Primer concepts and tools.

The Effective Utility Management Resource Toolbox. www.watereum.org/resources/resource-toolbox/ 

The Toolbox provides descriptions and links to key resources and measures designed to help the 

water and wastewater utility community improve the management of its infrastructure. The 

toolbox is designed as a companion resource to the EUM Primer.

B. Resources on Lean and Six Sigma Thinking and Process Improvement 

Bens, Ingrid. Facilitating with Ease! San Francisco: Jossey-Bass, 2000.

Facilitating with Ease! is a resource for team facilitators. It begins with introducing the concept 

of facilitation and includes chapters on facilitation strategy and meeting management. It 

provides checklists, tools, and tips for facilitating in a variety of situations. 
Resource Guide to Effective Utility Management and Lean | 46

Chowdhury, Subir. The Power of Six Sigma. Kaplan Business, 2001.

The Power of Six Sigma is told as a fictionalized tale meant to be engaging and provide a highlevel understanding of Six Sigma through a dialogue between two men. 

Collins, Jim. Good to Great: Why Some Companies Make the Leap...and Others Don’t. New York:

HarperBusiness, 2001.

Good to Great explores the way good organizations can be turned into ones that produce 

significant, sustained results. Collins reviews companies that achieved greatness in a variety of 

industries and identifies key characteristics that make them “great.” 

Meisel, Robert M., Steven J. Babb, Steven F. Marsh, and James P. Schlichting. Executive Guide to

Understanding and Implementing Lean and Six Sigma: The Financial Impact. Milwaukee: ASQ Quality

Press, 2007.

A part of the ASQ Quality Management Division Economics of Quality Book Series, the Executive 

Guide to Understanding and Implementing Lean and Six Sigma is written by subject matter 

experts and meant to provide executives with the introductory information on Lean and Six 

Sigma methods. It provides an overview of both methods, offers suggestions for preparing for 

implementation, and reviews the economic benefits of using Lean and Six Sigma.

Miller, Ken. We Don’t Make Widgets: Overcoming the Barriers that Keep Government from Radically

Improving. Washington DC: Governing, 2006.

Written for middle- and senior-level managers in state, city, and county government, We Don’t 

Make Widgets exposes three “myths” about government: it doesn’t make widgets, it doesn’t 

have customers, and it is not here to make a profit. Miller exposes these myths as barriers to a 

more efficient government and demonstrates how governments are in fact production factories 

with a bottom line and customers; similar to a business.

Womack, James P. and Daniel T. Jones. Lean Thinking: Banish Waste and Create Wealth in Your

Corporation. New York: Simon & Schuster, 1996.

Lean Thinking demonstrates how Lean can help a company in any industry in any country. It 

provides a step-by-step action plan for how to implement Lean in an organization, based on indepth studies of more than fifty Lean companies in a wide range of industries across the world. 

The authors are the originators of the term “Lean.”

C. Overarching Lean and Six Sigma Implementation Guides

Brassard, Michael and Diane Ritter. The Memory Jogger II: A Pocket Guide of Tools for Continuous 

Improvement and Effective Planning. Goal/QPC, 1994.

The pocket guide describes tools to help readers make continuous improvements in their 

organization. The tools are meant to help people at all levels participate in identifying and 

solving problems; eliminating rework; streamlining processes; improving cross-functional 
Resource Guide to Effective Utility Management and Lean | 47

communication; decreasing costs; and measuring results. The guide supports organization-wide 

consistency and participation in creating organizational breakthroughs and improvements.

Cole, Brandon. Lean Six Sigma for the Public Sector: Leveraging Continuous Process Improvement to

Build Better Governments. Milwaukee: American Society for Quality, 2011.

This book addresses the challenges of applying Lean Six Sigma in the public sector. Examples of 

these challenges include hierarchical environments, a lack of common goals, and the complexity 

of working in the public sector. The book provides over 30 spotlights highlighting project 

examples, lessons learned, and tips and tricks for using Lean Six Sigma in the public sector. 

George, Michael L. Lean Six Sigma: Combining Six Sigma Quality with Lean Production Speed. New York:

McGraw-Hill, 2002. 

Lean Six Sigma provides an overall treatment how to integrate Lean and Six Sigma, particularly

how process excellence can be combined with the goal of enhancing shareholder value creation. 

It provides insights into the application of Lean Six Sigma to both the manufacturing processes 

and the less-data-rich service and transactional processes.

Lean Six Sigma for Services. New York: McGraw-Hill, 2003.

Lean Six Sigma for Services explains how companies can cost-effectively translate

manufacturing-oriented Lean Six Sigma tools into the service delivery process. It also contains 

case studies detailing service improvements within organizations.

George, Michael L., David Rowland, and Bill Kastle. What Is Lean Six Sigma? New York: McGraw-Hill,

2003.

Written as a plain-English guide, What Is Lean Six Sigma? describes how organizations can

identify and eliminate waste, cut costs and grow revenue, and enhance job skills. It also 

contains charts, diagrams, and case studies of teams who have used these methods to improve 

their workplace. 

Joiner, Brian L., Barbara J. Streibel, and Peter R. Scholtes. The Team Handbook, Third Edition. New York:

Oriel, Inc. 2003.

The Team Handbook, Third Edition, includes a brief description of the Six Sigma improvement 

method DMAIC, and highlights the methods and strategies that are useful in Lean. It also covers 

a strategy for using designed experiments to identify and control sources of process variation. 

The book includes tools and techniques to help leaders manage project pipelines.

Morgan, John and Martin Brenig-Jones. Lean Six Sigma for Dummies. New York: For Dummies, 2012. 

Lean Six Sigma for Dummies outlines Lean and Six Sigma key concepts in plain English and is 

designed to be reader-friendly. It illustrates how to use Lean and Six Sigma tools and how to 

improve and design projects and incorporate the methods in your day-to-day activities. It shows 

you how to ensure the key principles and concepts of Lean Six Sigma become an integrated part 

of your organization.
Resource Guide to Effective Utility Management and Lean | 48

Productivity Press Development Team. Identifying Waste on the Shopfloor. New York: Productivity

Press, 2003.

This short, user-friendly book is focused on getting rid of waste. It covers the all aspects of 

identifying and eliminating waste and includes checklists and tools to find and identify waste in 

an organization and includes numerous sample checklists and forms. 

U.S. Department of Defense. Continuous Process Improvement/Lean Six Sigma Guidebook: Revision 1. 

(July 2008). www.au.af.mil/au/awc/awcgate/dod/cpi_leansixsigma_hdbk2008.pdf 

The guidebook provides a framework to be used for implementing and sustaining a culture of

continuous improvement. It focuses on three key areas: continuous improvement concepts and 

the Department of Defense approach; tools to support successful continuous improvement 

implementation; and continuous improvement roles and responsibilities. 

U.S. EPA. Lean Website, www.epa.gov/lean 

The EPA Lean website includes two major components, a Lean Government website, which is 

oriented towards government agencies that are using Lean to improve their processes, and a 

Lean and Environment website, which is oriented towards manufacturers and other 

organizations that seek to use Lean to reduce environmental wastes. The website includes 

information on Lean methods, case studies, toolkits, and other resources. Key resources 

relevant to water-sector utilities include the Lean in Government Starter Kit, the Environmental 

Professional’s Guide to Lean and Six Sigma, and a case study of Lean and Six Sigma at JEA. 

U.S. EPA and the Environmental Council of the States (ECOS). Lean in Government Starter Kit: How to 

Plan and Implement Successful Lean Initiatives at Environmental Agencies, Version 3.0. (November 

2012). www.epa.gov/lean/government/starterkit/resources/Lean-StarterKit.pdf

The Starter Kit is designed to help government agencies plan and implement successful Lean 

events. The Starter Kit answers questions to help managers determine whether Lean is right for 

their agencies, provides practical “how to” guidance on implementing Lean events successfully, 

and presents ideas for agencies interested in expanding their Lean initiatives. 

Wedgwood, Ian D. Lean Six Sigma: A Practitioner’s Guide. New York: Prentice Hall, 2006.

Lean Six Sigma is designed to be a practical tool, used day-to-day by readers to guide them 

through how to solve as many different types of business problems as possible using Lean and 

Six Sigma methodologies and tools. It captures best-practice experience from multiple projects 

and industries, helping any professional identify the solution that will work best and how to 

implement it.
Resource Guide to Effective Utility Management and Lean | 49

D. Resources on Specific Lean and Six Sigma Methods

5S Resources

Fabrizio, Thomas and Don Tapping. 5S for the Office: Organizing the Workplace to Eliminate Waste. 

New York: Productivity Press, 2006. 

In 5S for the Office, the authors bring the concepts of the 5S System (for workplace organization, 

standardization, and cleanliness) into the office context. The book is designed so readers can 

immediately apply 5S concepts to their office and administrative activities.

MCS Media. The 5S for the Office User’s Guide. Chelsea: MCS Media, 2010.

5S for the Office User’s Guide provides basic information on how to conduct a 5S office event, in 

addition to forms, worksheets, and checklists to ensure the projects are well planned and are 

able to be sustained throughout an organization. It is designed with a focus on implementation.

Peterson, James and Roland Smith. The 5S Pocket Guide. Portland: Productivity Press, 1998.

The 5S Pocket Guide is designed to enhance awareness of the principles behind the 5S System 

and identify its impact on improving efficiency and promoting a safe working environment. It 

outlines a disciplined methodology for implementing 5S, organized around a six-step method.

Productivity Press Development Team. 5S for Operators: 5 Pillars of the Visual Workplace. Portland:

Productivity Press, 1996.

5S for Operators: 5 Pillars of the Visual Workplace, is a hands-on book that explains the 

principles, rationale and implementation details of the 5S System. The text includes questions, 

outlines, summaries, diagrams and illustrations. 

Kaizen Event Resources

Martin, Karen and Mike Osterling. The Kaizen Event Planner: Achieving Rapid Improvement in Office,

Service, and Technical Environments. Portland: Productivity Press, 2007.

The Kaizen Event Planner provides a how-to guide for planning and executing kaizen events in 

non-manufacturing settings and includes information on conducting post-event follow-ups to 

sustain the improvements made. It is written for continuous improvement professionals and 

leaders in manufacturing and the service sector. 

Productivity Press Development Team. Kaizen for the Shopfloor. Portland: Productivity Press, 2002.

Kaizen for the Shopfloor covers all the steps necessary for conducting an effective kaizen event. 

It includes background information on kaizen events all the way through planning and preparing 

for an event, presenting results and conducting follow up activities.
Resource Guide to Effective Utility Management and Lean | 50

Six Sigma Resources

Breyfogle, Forrest W. III. Implementing Six Sigma: Smarter Solutions Using Statistical Methods. New

York: John Wiley & Sons, 1999.

This book is a comprehensive reference book on both the process and tools for implementing 

Six Sigma. It includes plans, checklists, metrics, and pitfalls related to implementing Six Sigma, 

as well as exercises for understanding how to use the statistical methods.

Gygi, Craig, Neil DeCarlo, Bruce Williams, and Stephen R. Covey. Six Sigma for Dummies. Hoboken:

Wiley Publishing, 2005. 

Six Sigma for Dummies provides and overall guide to Six Sigma including the benefits of Six 

Sigma, the DMAIC roadmap, how the Six Sigma “belt” system works, and many other topics. It is 

designed to be easy to read and accessible to anyone interested in the topic.

Michalski, Walter J. Six Sigma Tool Navigator: A Master Guide for Teams. Portland: Productivity Press,

2003.

The Six Sigma Tool Navigator provides a complete collection of tools for teams engaged in Six 

Sigma improvement activities. Michalski classifies each tool by process application, description 

of various applications of the tool, links to “before and after” tools, and problem-solving phases 

most applicable for each tool.

Pandle, Peter S., Robert P. Neuman, and Roland R. Cavanagh. The Six Sigma Way Team Fieldbook: An

Implementation Guide for Process Improvement Teams. New York: McGraw-Hill, 2002.

The Six Sigma Way Team Fieldbook is a reference for team leaders and members, outlining both 

Six Sigma methods and the basic steps a team must follow in an improvement effort. The guide 

is written to be hands-on and is designed to help teams obtain the skills they need to identify a 

product, service, or process that needs improvement or redesign; gather data on the process 

and the rate of defects; find ways to improve quality up to a Six Sigma level.

Standard Work Resources

Productivity Press Development Team. Standard Work for the Shopfloor. New York: Productivity Press,

2002.

This book covers the characteristics of standard work, key benefits and applications of 

standardization, standard work concepts and calculations, and documentation. It includes 

standard work manuals, charts, and worksheets.

Total Productive Maintenance Resources

Japan Institute of Plant Maintenance (eds.). TPM for Every Operator. Portland: Productivity Press, 1992.

Designed to be user-friendly, this book covers the information that needs to be communicated 

to operators when facilitating a company-wide TPM initiative. It covers the main aspects of 

TPM, including introducing workers to TPM strategies and initiating routine maintenance. 
Resource Guide to Effective Utility Management and Lean | 51

Value Stream Mapping Resources

Rother, Mike and John Shook. Learning to See: Value Stream Mapping to Create Value and Eliminate

Muda. Brookline: The Lean Enterprise Institute, 2003.

Learning to See is one of the main resources for value stream mapping. This workbook explains 

everything readers will need to know about how to create accurate current-state and futurestate maps for processes. It also describes how to turn the current state into the future state.

Tapping, Don, Tom Shaker and Tom Luster. Value Stream Management: Eight Steps to Planning,

Mapping & Sustaining Lean Improvements. Portland: Productivity Press, 2002.

This book introduces the reader to value stream mapping and links the metrics and reporting 

with the Lean tools needed for implementation. A central feature of this book is a value stream 

management storyboard, a tool representing an eight-step process for Lean implementation. 

The storyboard brings together people, tools, metrics, and reporting into one visual document.
Resource Guide to Effective Utility Management and Lean | 52

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Appendix C: Case Studies

Charleston Water System Case Study

Summary 

The Charleston Water System (CWS), located in Charleston, South Carolina, oversees one water 

treatment plant and two wastewater treatment plants and serves approximately 400,000 customers.

16 

The overarching management framework for CWS is the Baldrige Criteria for Performance Excellence, 

coupled with the Effective Utility Management (EUM) framework and the Environmental Management 

System (EMS). CWS also used the Baldrige Criteria to develop the utility’s most current strategic plan, 

which support the EUM Attributes. 

As a precursor to this management system, CWS uses its comprehensive EMS, which was developed 

using the International Organization for Standardization’s ISO 14001 Standard. This initiative was 

started in 1998, with the first department certified in 1999, and all departments certified by 2003. The 

EMS is used throughout the organization for process and organizational improvements and for reducing 

CWS’ adverse impacts on the environment.17 

The Baldrige Criteria and the EMS provide the utility with a powerful and proven structure for using 

process improvement tools, including Lean and Six Sigma methods, to achieve the outcomes described 

in the EUM Attributes. The utility has a long history of using quality tools, but has recently begun to 

regularly use process-improvement tools from Lean and Six Sigma to enable the utility to increase its 

overall productivity. 

 

16 Charleston Water System, Drinking Water Service, http://www.charlestonwater.com/water_overview.htm (Accessed 15 June 2012). 17 The Malcolm Baldrige Criteria for Performance Excellence are an integrated framework for managing an organization. They are simply a set 

of questions focusing on critical aspects of management that contribute to performance excellence and include: leadership; strategic planning; 

customer focus; measurement, analysis, and knowledge management; workforce focus; operations focus; results. Source: National Institute for 

Standards and Technology, Criteria for Performance Excellence, http://www.nist.gov/baldrige/publications/criteria.cfm (accessed 19 June 

2012).
Resource Guide to Effective Utility Management and Lean | 54

Summary of Results from Lean, Six Sigma, and EUM Projects

CWS’ improvement efforts have produced impressive results. CWS’ Lean and Six Sigma processimprovement efforts have achieved the following results: 

Wastewater Collection System Infiltration and Inflow (I&I) Project

• Improved financial viability and optimized operations by reducing I&I, creating $1.3 million in 

savings in operations and maintenance costs per year.

• Improved water resource adequacy by increasing wastewater treatment capacity by 2.62 

million gallons per day (MGD).

• Improved financial viability by achieving $9.17 million in impact fee savings. 

Water Treatment Plant Chemical Disinfection Process Project

• Improved financial viability by achieving $50,000 in chemical savings per year.

• Improved financial viability by saving $50,000 in labor costs per year.

• Improved employee and leadership development by increasing staff training and establishing 

guides, standard operating procedures, and task instructions for calibrating instruments, 

monitoring processes, and adjusting chemical dosage.

Utility Experience with Effective Utility Management and Lean 

CWS views the Baldrige Criteria for Performance Excellence as a key strategy for becoming an effectively 

managed utility. In 2007, CWS began using the Baldrige Criteria to improve the current strategic plan 

and to further effective utility management. It is a comprehensive, systematic framework to optimize 

organizational performance. The Baldrige framework is centered on a set of core values and concepts 

focused on delivering value to customers, improving organizational effectiveness, and promoting 

organizational and staff learning.18 Lean and Six Sigma methodologies overlap with and can act in 

support of Baldrige Criteria in that they are tools to enhance performance and continuous 

improvement; the Baldrige Criteria are often viewed as an overarching assessment framework in which 

Lean and Six Sigma tools can be incorporated. 

CWS used the strategic plan and the Baldrige Criteria to develop 100 different measures to track the 

quality of process outputs for the water and wastewater treatment facilities, employee development 

performance, safety improvement, organizational leadership, financial health, and many other key focal 

areas. As part of this process, the utility also examined customer requirements to ensure it was meeting 

customer expectations. These measures and quality checks were included in the foundation of the 

utility’s most current strategic plan. Even though CWS developed the strategic plan prior to the 

publication of the EUM Primer, CWS was involved in the development of the framework. After 

 

18 Paul Grizzel and Mark Blazey, “Alignment of Baldrige with Six Sigma, Lean Thinking, and Balanced Scorecard,” Insights on Professional 

Excellence, 2006. http://statorgservices.com/Papers/Alignment%20of%20Baldrige-Six%20Sigma-Lean-Bal%20Scorecard.pdf (Accessed 18 June 

2012).
Resource Guide to Effective Utility Management and Lean | 55

publication, CWS found that its strategic plan, EMS and adopted Baldrige Criteria framework all closely 

aligned with all of the 10 Attributes and five Keys in the Primer. 

CWS began using Lean and Six Sigma tools in 2009 to achieve its desired outcomes identified in its EMS 

and strategic plan. CWS regularly uses Lean and Six Sigma tools, including:

• DMAIC (Define-Measure-Analyze-Improve-Control) process improvement approach. This 

approach is directly aligned with the PDCA (Plan-Do-Check-Act) process improvement approach 

used in EMS and Baldrige quality programs

• Value stream mapping (a process-mapping method focused on identifying non-value added 

activity and prioritizing improvements)

• Standard work (documented standard operating procedures)

• 5S (sort, set in order, shine, standardize, and sustain)

• Six Sigma statistical process quality control and variation analyses 

• “Fishbone” cause-and-effect diagrams and other root-cause analysis problem-solving tools 

• Visual controls (signs, color coding and other visual cues to reinforce proper procedures)

Lean and EUM Projects and Results 

This section describes two projects that Charleston Water System conducted using Lean and Six Sigma—

an I&I reduction project and a project to improve the chemical disinfection process at the utility’s water 

treatment plant. Both these projects used a similar implementation process, as described below.

Overview of Lean and EUM Projects 

Wastewater Collection Infiltration and Inflow Reduction Project 

Problem and Project Goals: CWS was treating excess water in its wastewater collection system, because 

rain and groundwater entered the system through cracks and cross-connections. To address this 

problem, CWS used Six Sigma process improvement methods and statistical process control tools to: (1)

improve predictive maintenance, and (2) prioritize sub-basins to undergo further investigation through 

the Sewer System Evaluation Survey (SSES) and for infiltration and inflow reduction efforts. 

Project Team: For this Six Sigma project, CWS assembled a cross-functional team consisting of ten staff 

members. Representatives included members of the Wastewater Collections Department, the 

Supervisory Control and Data Acquisition (SCADA) Manager, IT personnel, and a member from the 

Water Treatment Plant with Six Sigma experience. Extensive mentoring and training was provided to 

the team to ensure success. Follow-up training was also provided to ensure the team stayed on track 

and to answer questions that arose.

Water Treatment Plant Disinfection Process Project 

Problem and Project Goals: CWS was unsure whether employees were adding excess chemical 

disinfectants to the water treatment plant disinfection process to correct or buffer for variability and to 

ensure compliance. Using Six Sigma process improvement methods and statistical process control, CWS 
Resource Guide to Effective Utility Management and Lean | 56

sought to reduce the daily variability in the disinfection process and to increase predictability in the 

overall process. In addition, CWS sought to reduce costs associated with using excess chemicals. 

Project Team: CWS assembled a cross-functional team ranging from five to ten active staff members 

who participated in the project over its duration, including subject-matter experts who were included as 

needed. Staff participation ranged from plant operators, to maintenance technicians, to supervisors, 

and management level staff. Extensive training was provided to the team to ensure success. Follow-up 

training was also provided to ensure the team stayed on track and to answer questions that came up.

Implementation Process—Six Sigma and Lean Tool Application in Both Projects

“Lean focuses on the more visible 

problems associated with inefficiencies, 

where Six Sigma focuses on the less 

visible concerns associated with real 

data. Combining these approaches 

(Lean Six Sigma) allows the organization 

to reduce inefficiencies and waste using 

validation, and a structured, proven 

approach to pursuing improvement 

projects.” 

“Without a methodology and structured 

framework in place, it is difficult to 

identify inefficiencies, plan 

improvements, execute your plans, and 

make them stick, all in a timely 

manner.” 

– Richard Bickerstaff, Strategic Business 

System Manager, Charleston Water 

Services, South Carolina 

The project teams from both the I&I reduction

project and the disinfection process project used a 

variety of Six Sigma and Lean tools and as part of 

their implementation processes, including:

• Six Sigma DMAIC process improvement 

process 

• Six Sigma project definition worksheet

• Process flow charts

• Fishbone cause-and-effect diagrams to 

examine root causes of problems

• Run charts (graphs that display data in a 

time sequence)

• Statistical process control charts (run 

charts that show the range of acceptable 

variability)

• Correlation charts (correlation tables show 

how items correlate with each other)

• Box plots (a graphical way of depicting 

ranges of data as boxes or boxes with 

extending lines)

To facilitate project deployment, the teams used a 

standard process improvement Six Sigma template

that included the Plan-Do-Check-Act/Define-Measure-Analyze-Improve-Control (PDCA/DMAIC) 

framework. The first step was to define in writing the problems that were being considered for 

improvement. The teams also selected metrics to measure the level of results attained. In addition, the 

teams established process goals to help measure progress. 

For the teams to better understand the inputs, outputs, and systems involved, they developed process 

flow diagrams. The first diagram each team created was a high-level process map. Then both teams 

mapped each major category of the processes, resulting in approximately 15 process-flow diagrams that 
Resource Guide to Effective Utility Management and Lean | 57

further dissected the interworking of the overall process. Both teams also created cause-and-effect 

diagrams to evaluate the process inputs in four categories: machine, man, methods, and measurement.

To prepare for the analyzing phase, the teams gathered data from the SCADA system and analyzed it 

using statistical process control methods (e.g., control charts). This allowed the Water Treatment Team 

to identify the level of chemical dosage variation, and allowed the I&I Team to analyze pump run time 

variation. Scatter diagrams based on regression analysis were also used to analyze the relationships 

between various data sets and aided in the decision-making process.

The teams then identified recommendations for improvement that were implemented. After seeing 

significant success in a short period of time, the recommendations were formally adopted. 

• For the I&I project, the analyses resulted in inspecting 449,566 linear feet of wastewater mains 

and 2,108 manholes. The I&I Team then identified priorities and scheduled repairs and/or 

rehabilitation.

• For the water treatment process, standard operating procedures were updated and a contact 

time (CT) calculator was created to aid water operators in “controlling” and maintaining the 

new, improved process. 

Using the Lean and Six Sigma tools helped the project team better understand the problem and the 

processes that were being analyzed. CWS staff noted that with the increased understanding of the 

benefits Lean and Six Sigma tools provide resulted in the opportunity for Lean-style thinking to be 

applied more broadly at the utility. In addition, the tools allowed teams to be better equipped to 

analyze the available data and to make data-driven verses subjective decisions.

Results from the Wastewater Collection I&I and Water Treatment Plant Disinfection Process Projects 

By using a variety of Lean and Six Sigma tools, CWS achieved significant results from its Wastewater 

Collection I&I Reduction Project and its Water Treatment Plant Disinfection Process Project. CWS uses 

the data collected from the Six Sigma statistical tools to increase the use of data-driven decision making. 

SCADA data is now captured on a daily basis and is used to make real-time adjustments. This Six Sigma 

approach has also been incorporated into the daily duties of staff personnel. CWS has set new goals and 

targets for the wastewater collection operations and water treatment plant based on the data. 

Specific results and associated EUM Attributes from the projects include the following:

19

Wastewater Collection I&I Reduction Project Results

• Improved financial viability and optimized operations by achieving $1.3 million in operations and 

maintenance cost savings per year.

• Improved water resource adequacy by increasing wastewater treatment capacity by 2.62 million 

MGD.

 

19 The following results are from Richard Bickerstaff, Charleston Water System, personal communication, 30 May 2012 and 24 Sept 2012. 
Resource Guide to Effective Utility Management and Lean | 58

• Improved financial viability by achieving $9.17 million in impact fee savings from the increased 

treatment capacity.

20 The impact fee savings was calculated based on the following formula: $3.5/MGD saved x 2.62 MGD = $9.17 million.

20

Water Treatment Plant Disinfection Process Project Results

 

• Improved financial viability by achieving $50,000 in chemical savings per year.

• Improved financial viability by saving $50,000 in labor costs per year. 

• Enhanced operational optimization by using variation evaluation to determine when the system 

is “out of control.” Operators now only make adjustments when the system is “out of control” 

instead of on a continual basis. This reduced the frequency with which operators were taking 

readings and notifying instrumentation/electrical personnel to make adjustments to the system.

• Improved employee and leadership development and optimized operations by increasing staff 

training and establishing guides, standard operating procedures, and task instructions for 

calibrating instruments, monitoring processes, and adjusting chemical dosage.

• Optimized operations by developing a CT real-time calculator increased the use of statistical 

process control and difference charts, and updating process system flow charts. 

 

Looking Forward to the Future 

CWS has used the EMS and EUM frameworks to improve utility systems and management. The utility 

has recently begun using Lean and Six Sigma tools in support of these frameworks and had some 

important, immediate successes. In October 2011, CWS was awarded the South Carolina Governor’s 

Quality Award. The Governor’s Quality Award is a top honor for organizations that achieve performance 

excellence by implementing the Baldrige Criteria for Performance Excellence. In July 2012, CWS was 

awarded NACWA’s Excellence in Management award for continuous improvements in the EUM 

Attributes, and for other sustainability initiatives. 

CWS plans to expand the use of Lean and Six Sigma tools in its process-improvement efforts, building on 

the successes it has had in the past several years. All department directors and assistant directors have 

been trained on Lean and Six Sigma tools, and the model has been incorporated into the standard 

process improvement frameworks that exist in the organization. The use of EUM, the utility’s EMS, the 

Baldrige Criteria, and Lean and Six Sigma tools will help CWS in the attainment of its new vision: by 2017, 

CWS’s 100th anniversary, its vision is to become worthy of the Malcolm Baldrige National Quality Award 

for its customers, its community, and its future.

 
Resource Guide to Effective Utility Management and Lean | 59

Clean Water Services Case Study 

Summary 

Clean Water Services is a water resources management utility serving 536,000 customers in Washington 

County, Oregon (west/southwest of Portland).21 Clean Water Services and its member cities support 

healthy rivers and streams through four wastewater treatment facilities, over 1,200 miles of storm and 

wastewater lines, flood management projects, water quality and stream enhancement projects, fish 

habitat protection/restoration, and resource recovery. Clean Water Services also manages summertime 

flow in the Tualatin River to improve water quality and fish habitat by releasing purchased water from a 

Bureau of Reclamation project. Clean Water Services has a long history of implementing utility 

management initiatives, and in doing so, the utility has adapted the approaches from industry to fit the 

organization’s needs and culture. The utility has numerous strengths across the EUM Attributes, 

including community sustainability, as Clean Water Services holds the first integrated, municipal 

watershed-based permit in the country. 

Clean Water Services was already a well-running utility, but it decided further leverage the gains made 

in the late-90s with its business process re-engineering initiative by investing in Lean and Six Sigma, and 

using the EUM Self-Assessment to move “from good to great” and advance its new vision of becoming a 

resource-recovery utility. The utility has invested in Lean and Six Sigma training, established a Business 

Process Management Center of Excellence, initiated several Lean and Six Sigma projects, and is using the 

priorities identified in a EUM Self Assessment to drive future improvement projects. Based on the EUM 

Self Assessment initially conducted in 2008 and updated in summer 2012, Clean Water Services has 

identified key performance indicators for the utility’s improvement priorities, organized Lean and Six 

Sigma process improvement projects through the utility’s annual “Goal Share” strategic planning 

process, and the utility is currently developing dashboards for each indicator to track its progress. 

 

21 For more information about Clean Water Services, see http://www.cleanwaterservices.org. 
Resource Guide to Effective Utility Management and Lean | 60

 

Case Study Highlights

• Clean Water Services invested in Lean and Six Sigma training and implementation, because it 

needed more robust and proven, data-driven, performance-enhancement tools that could help it 

transition from a wastewater and stormwater utility to a resource-recovery utility.

• The utility is using the EUM framework to benchmark its performance against utility-relevant 

measures, select the most important improvement opportunities, and inform its “Goal Share” 

strategic planning process. 

• Lean provides a simple and effective structure to engage staff in continually improving processes, 

while Six Sigma provides the analytic rigor needed to address complex operational processes. 

• The utility’s investment in Lean and Six Sigma is expected to save hundreds of thousands of 

dollars in a relatively short time frame.

• For example, the “Bio-P” Six Sigma and EUM Project is expected to produce the following results:

– Enhance financial viability and operational optimization by reducing chemical usage by 

$250,000 per year. 

– Improve operational optimization, financial viability, and community sustainability by 

increasing the production of Crystal Green fertilizer (struvite recovery) by 20 percent.

– Develop advanced process-control knowledge that is transferable to other utilities for 

biological nutrient removal and nutrient recovery, providing benefits for operational 

optimization and operational resiliency to Clean Water Services and others. 

Utility Experience with Effective Utility Management and Lean 

History of Management Improvement Initiatives

Like many utilities facing increasingly stringent state and federal pollution control requirements, aging 

infrastructure, and a growing service district, Clean Water Services has needed to reduce costs, produce 

measurable results, and deliver services at unparalleled value for ratepayers and the environment. In 

1995, the Clean Water Services embarked upon a strategic initiative designed to control its destiny, 

chart its future, and reach “beyond excellence.” Since that time, the utility launched a series of 

management improvement efforts, including the following:22

• Business process reengineering, including aggressive budget reductions and staffing cuts in the 

late 1990s, including cutting positions from 366 to 278 in three years

• A Goal-Share Program to support collaborative improvement efforts

• A pay-for-performance system for all employees, including those subject to a collective 

bargaining agreement

• The nation’s first integrated, municipal watershed-based permit allowing water-quality trading

22 Information in this section provided by Bill Gaffi, Mat Stickler and Diane Taniguchi-Dennis, Clean Water Services, Personal Communication, 

May and August 2012.
Resource Guide to Effective Utility Management and Lean | 61

• A business partnership with Ostara Nutrient Recovery Systems, to provide the nation’s first fullscale commercial phosphorus recovery system

• Formation of the Clean Water Institute non-profit organization, which commercializes Clean 

Water Services’ intellectual property and other watershed management innovation

• A Business Process Management Center of Excellence, with core staff trained on Lean and Six 

Sigma methods 

Due to these and other efforts, Clean Water Services has been recognized by sister organizations and 

business magazines as a best-in-class utility. The utility’s accomplishments include the following:23

“EUM is the magnifying glass for utilities 

to provide deliberate focus for a utility’s 

strategy and outcomes, and Lean is the 

tool to make lasting change for utilities to 

become more efficient and effective.” 

“Unless utilities are equipped with robust 

management tools to improve their 

operations, changes are made based on 

gut instincts without the benefit of data. 

It is very helpful to have tools for 

structured process improvement such as 

Lean and Six Sigma.”

– Diane Taniguchi-Dennis, Deputy General 

Manager, Clean Water Services, Oregon

• Achieved nearly $100 million in operating 

cost savings while operating within one of 

the nation’s most stringent and rapidly 

evolving regulatory environments.

• During a period of program expansion, 

reduced the ratio of employees to 

customers by over 35 percent, including 

reducing the fleet by one-third and cutting 

two levels of management. 

• Maintained only very modest rate 

increases during a period of dramatic 

program expansion and capital investment 

driven by new regulations.

• Shifted the organizational vision from a 

traditional “pumps, plants, and pipes” 

view to a broader, holistic watershed and 

public health vision, including changing 

the organization’s name from Unified 

Sewerage Agency to Clean Water Services.

• Received Platinum or Gold Awards from the National Association of Clean Water Agencies for all 

four wastewater treatment plants based on multiple years of 100 percent compliance with 

wastewater discharge permits.

• Twice recognized by EPA as the having the nation’s best source-control program of its size.

• Instituted the nation’s first temperature water quality trading program, which saved the utility 

$140 million in capital and operating costs beyond the savings noted above.

 

23 Information in this section provided by Diane Taniguchi-Dennis, Clean Water Services, Personal Communication, August 2012.
Resource Guide to Effective Utility Management and Lean | 62

The utility’s Lean, Six Sigma, and EUM efforts represent the latest evolution of this long history of 

management improvement efforts. The purpose of the Lean and Six Sigma efforts is to reduce efficiency 

bottlenecks in transactions and procedures, reduce non-value added workflow, and optimize processes 

to provide quality services and maximum value for the cost of services provided. The Goal Share 

Program (noted above) at Clean Water Services provides an important strategic focus for the utility’s 

management improvement efforts. In the Goal-Share Program, the Board and Leadership Team select 

annual strategic priorities based on the utility’s needs and challenges, and then identify 80–100 

actionable, measurable stretch goals that employee teams work on across organizational silos. Each 

employee receives an equal share in the benefits from the goal-share efforts, so this rewards 

collaborative work. The utility’s annual strategic priorities address many of the areas in the EUM 

Attributes, including financial viability, product quality, and community sustainability. Clean Water 

Services is using the EUM Self Assessment as a tool to sharpen the focus of the planning process for the

Goal-Share Program, and is using Lean and Six Sigma methods to support implementation of Goal Share 

process- improvement goals through the Business Process Management Center of Excellence. 

Reasons for Introducing EUM, Lean, and Six Sigma

“It’s not wastewater anymore; it’s a 

resource that will shape the sustainability 

of our watersheds and communities.”

– Bill Gaffi, General Manager, Clean Water 

Services, Oregon

As noted above, Clean Water Services exemplifies 

many aspects of an effectively managed utility, and 

it scores well across the EUM Attributes. However, 

Clean Water Services sought to move “from good 

to great” and advance a new vision for the utility: 

transitioning from a wastewater and stormwater 

utility to a resource-recovery utility (see quote 

box). The utility used the proven tools of Lean and 

Six Sigma to take its process-improvement efforts 

to the next level and work towards that vision, as well as the EUM framework to guide the overall 

improvement priorities in the “Goal Share” strategic planning process.

Clean Water Services chose to focus on Lean and Six Sigma for these key reasons: 

• Lean and Six Sigma are demonstrated approaches used throughout multiple industries (including 

Clean Water Services’ customers) that have produced unparalleled success.

• Lean and Six Sigma give good managers better tools to improve processes.

• Lean provides structured and effective processes for engaging employees in continual 

improvement efforts. (Clean Water Services uses Lean methods, in particular, for transactional 

and administrative processes.)

• Six Sigma provides the analytical rigor necessary for optimizing complex operational processes.

Clean Water Services completed a EUM Self Assessment in 2008, when the EUM Primer was developed,

but managers thought that re-doing the assessment would be valuable, based on the utility’s new vision 
Resource Guide to Effective Utility Management and Lean | 63

and commitment to implementation through the Business Process Center of Excellence. The utility 

chose to incorporate EUM into its Goal-Share planning process, rather than launch an independent 

initiative, in order to fit with the organization’s culture. Key reasons for conducting the EUM Self 

Assessment include:

• The EUM Self Assessment will help the utility to select improvement priorities and decide where 

to target future Goal Share process improvement projects.

• The EUM Self Assessment provides a simple and quick process to engage leadership and 

managers in a discussion of utility performance and improvement priorities.

• Framing the utility’s goals and performance metrics in common language (e.g., in annual 

reports) relevant to the utility industry will help simplify communications with stakeholders.

Lean, Six Sigma, and EUM Deployment Efforts

In 2010, Clean Water Services formally introduced Lean and Six Sigma methods to its business process 

improvement program. This supported an annual “goal share measure” focused on business process 

improvement and built on training conducted for 75 staff on business process modeling techniques in 

2008. Lean, in particular, has been empowering for employees. Staff has been less receptive to Six 

Sigma terminology as compared to the simpler waste-reduction concepts of Lean, but complicated 

processes such as treatment plant operations directly benefit from the data analysis of Six Sigma. 

The utility has taken the following steps to introduce and incorporate Lean, Six Sigma, and EUM into the 

organization: 

• Staff Training: Clean Water Services significantly expanded formal training of staff in Lean and 

Six Sigma methods in 2011-12. As of summer 2012, 15 staff had received training from the 

Lasater Institute24 on Lean and Six Sigma methods at the “gold belt” (introductory) level25 and 

one had received training at both the “green belt” (middle) and “black belt” (advanced) levels. 

The utility plans to move one more staff person to the “black belt” level of training and six staff 

to the “green belt” level. 

• Allocated Resources: The Lean and Six Sigma training has cost the utility $40,000, as well as 

staff time, but the utility expects to save hundreds of thousands of dollars from the investment 

in a relatively short period. 

• Established a Center for Excellence: In 2011, Clean Water Services established a “Business 

Process Management Center of Excellence.” This formalized the Lean and Six Sigma 

improvement program and elevated its importance within the utility. About 15 people from 

across the utility work on Center for Excellence initiatives. 

• Initiated Improvement Projects: The Center of Excellence initiated several process improvement 

projects, including the treatment plants’ biological-Phosphorus processes (described below), the 

 

24 The Lasater Institute (http://www.lasaterinstitute.com/) is a private Lean and Six Sigma consulting and training firm. 25 The more common name for the introductory level of Lean Six Sigma training is “yellow belt” rather than “gold belt.”
Resource Guide to Effective Utility Management and Lean | 64

parts-stocking process for treatment plants, establishing a documented process for security 

provision, and reducing the costs of landscaping. The EUM Self Assessment completed in 2012 

and the revised Goal-Share program will guide future improvement projects.

• Adapted the Lean Tools to Fit with the Organizational Culture: To better fit with the utility’s 

operational needs, Clean Water Services has adapted the implementation process for Lean 

events so that they occur over non-sequential days spread out over weeks or a couple of 

months, rather than a single week-long event. The utility has also tried to minimize the 

introduction of new terms and jargon, and all projects support the Goal Share program. 

• Incorporated EUM Into the Goal Share Process: After completing initial Lean and Six Sigma 

projects and training in 2011-12, Clean Water Services decided to more explicitly incorporate 

Lean and Six Sigma methods into the Goal Share process for the 2013 fiscal year, as well as align 

the Goal Share efforts with the EUM framework. The utility completed a EUM Self Assessment

in summer 2012 (described below) and is using the results to inform planning for future Lean 

and Six Sigma process improvement projects in the Goal-Share process.

In these efforts, Clean Water Services has used a variety of tools from the Lean and Six Sigma toolbox, 

including:

• Lean waste identification (“DOWNTIME” = Defects, Overproduction, Waiting, Non-utilized or 

underutilized employee resources, Transportation, Inventory, Motion, Excess Processing)

• Current state and future state process mapping 

• 5S (a 5-step method for cleaning, organizing, and standardizing work areas)

• Cause-and-effect analysis (e.g., “fishbone” diagrams)

• Failure mode effect analysis (a method for analyzing the causes of failures and developing 

corrective actions to address problems)

• Six Sigma statistical process control analyses 

In summer 2012, Clean Water Services conducted a EUM Self Assessment with its Leadership Team and 

with a group of about 55 supervisors across the utility. The utility did the assessment as an interactive 

exercise that used an audience response system, where meeting participants could provide their input 

on EUM Attribute importance rankings and achievement ratings electronically, and results could be 

updated in real time. This proved to be a very effective tool for engaging participation and collecting 

input in a short time. The leadership’s EUM Self Assessment revealed that product quality, financial 

viability, and customer satisfaction scored the highest in terms of both importance and achievement. 

Clean Water Services is committed to familiarizing utility managers with the EUM framework. Based on 

the EUM Self Assessment priorities and other planning for the Goal-Share process, the utility will identify 

a set of about 20 key performance indicators to drive improvement efforts over the next year, and then 

will develop dashboards to help managers and staff track progress on those indicators throughout the 
Resource Guide to Effective Utility Management and Lean | 65

year. The utility intends to align the Goal Share goals and indicators with the EUM Attributes, and then 

continue to use Lean and Six Sigma in process improvement projects to meet the annual goals. 

Clean Water Services’ Preliminary Results from the 2012 EUM Self Assessment

Lean and EUM Projects and Results 

Clean Water Services launched a series of improvement projects through its Business Process 

Management Center of Excellence; this section highlights the status and expected results of a project 

that is central to the utility’s future vision of becoming a community resource-recovery utility. 

Improving the Treatment Plant “Bio-P” Process with Six Sigma (Ongoing Project)

Problem: Clean Water Services uses biological phosphorus (bio-P) treatment technology at its Durham 

wastewater treatment plant and intends to use a similar approach at its other treatment plants, once it 

has optimized the Durham bio-P process to reduce chemical use and costs. The utility must seasonally 

treat discharges to the Tualatin River to a limit of 0.1 milligrams/liter (mg/l) of phosphorus, and would 

prefer to meet the requirements cost effectively without using a lot of chemicals. The goals of the 

project include reducing costs and chemical use, while meeting discharge limits and performance 

standards. The project is expected to provide benefits for EUM Attributes including financial viability, 

operational optimization, and community sustainability. 
Resource Guide to Effective Utility Management and Lean | 66

Implementation Process: Clean Water Services is using the Six Sigma DMAIC (Define-Measure-AnalyzeImprove-Control) process for this project. The IT Division Manager is leading this project for his “black 

belt” training certification, and he is working with a cross-functional team of eight employees to conduct 

the project. The complexity of the process and the number of inter-dependent variables that the utility 

seeks to optimize makes this a particularly appropriate project for Six Sigma methods. 

So far, the project team has completed the first two phases in the process and begun work on the third:

• Define: Clean Water Services began the project by selecting a project team and developing a 

charter for the project. The team is made up of Operational Analysts and a Process Engineer from 

the Waste Water Treatment Department, a statistics expert from the Regulatory Affairs 

Department, the Manager of the IT Division who has received the most Lean and Six Sigma training 

at the utility, and the Director of the Business Operations Department who serves as the project 

lead and sponsor, has extensive background in waste water treatment processes, and “gold belt” 

level training in Lean and Six Sigma. The project goal is to increase the use of Bio-P treatment (i.e., 

the “Y” the utility seeks to improve) by stabilizing the process. 

Individual-Moving Range (I-MR) Charts for Phosphorus Effluent Levels for the Bio-P Process 

The goal of the Bio-P project is to control phosphorus effluent levels to within the upper control 

limit (UCL) and lower control limit (LCL), which are shown in these charts as red lines.

• Measure: In the second phase of the project, the project team worked together to create a process 

map and then used a “Cause and Effect Matrix” to identify and prioritize the “Xs” (dependent 
Resource Guide to Effective Utility Management and Lean | 67

variables or inputs) that contribute to varying process outputs. This resulted in short list of key 

inputs to be more highly scrutinized.

• Analyze: In the Analyze phase, the team has begun using Minitab statistical software to graph 

control charts, and conduct regression analysis of the key inputs. The utility is fortunate in that the 

process has been highly monitored for years, so the team has access to detailed, electronic, and 

continuous measurements.

Over the next 8–12 months, the utility will complete 

the Analyze phase and conduct the Improve and 

Control phases for the project. This will involve the 

following activities:

“The bio-P process improvement project

will require the highest level concepts of 

the Lean/Six Sigma training we've 

received, definitely black-belt level.

However, we expect the effort will 

improve and develop a far more stable 

process that will quickly pay for itself in 

chemical costs savings, and increased 

revenue from recovered resources.”

– Mat Stickler, IT Division Manager, Clean 

Water Services, Oregon 

• Analyze: The team will determine the true 

sources of variation and potential failure modes 

that lead to poor “Y” performance—that is, the 

root causes that limit the ability of the utility to 

maximize recovery of struvite through the Bio-P 

process. 

• Improve: In the Improve phase, the team will 

conduct multi-variable analysis and use the 

“Design of Experiments” (DOE) method to 

optimize the most critical inputs (i.e., the “Xs”) 

for the process. 

• Control: The purpose of the Control phase is to 

establish tools that will ensure the key variables stay within the accepted variances over the long 

run. In this phase, the project team will create a plan for handing off the process, which will include 

response procedures and educational information to guarantee the process will continue to meet 

performance expectations and produce long-term project savings. 

Expected Results: 

Clean Water Services expects to realize the following benefits from the bio-P process improvement 

project upon its completion. In addition, since the project is a capstone project for a Lean and Six Sigma 

“black belt” training class, it also represents an example of employee leadership and development, as 

Clean Water Services builds its internal capacity for continual learning and improvement.

• Enhance financial viability and operational optimization by reducing chemical usage by $250,000 

per year. Stabilizing the bio-P process not only will reduce chemical costs, it will also increase 

revenues from the utility’s resource recovery system, which can only produce the Crystal Green 

fertilizer during Bio-P treatment. 

• Improve operational optimization, financial viability, and community sustainability by increasing 

the production of Crystal Green fertilizer (struvite recovery) by 20 percent.
Resource Guide to Effective Utility Management and Lean | 68

• Develop advanced process-control knowledge that is transferable to other utilities for biological 

nutrient removal and nutrient recovery, providing benefits for operational optimization and 

operational resiliency to Clean Water Services and others. 

• Enhance community sustainability by reducing chemical use and maximizing resource recovery. 

With expanded use of the Bio-P process, the utility will produce less biosolids, which need to be 

hauled to eastern Oregon. Reducing consumption of chemicals minimizes the impacts 

associated with chemicals, such as mining and transportation. 

Looking Forward to the Future 

Clean Water Services is a leader in effective utility management and sustainability efforts. It was the 

first utility to obtain an integrated, watershed-based permit addressing water quality, water quantity, 

and wildlife habitat issues, and through its partnership with Ostara, it operates the nation’s first fullscale commercial phosphorus recovery system. Clean Water Services is transitioning its business from a 

wastewater and stormwater utility to a resource-recovery utility, and utility managers see Lean and Six 

Sigma methods as being essential to that transition. The utility plans to continue its initial investment in 

Lean and Six Sigma training for managers and staff to establish a core group who can lead processimprovement projects for the utility in the future. Future Lean and Six Sigma improvement projects will 

address priorities identified through the utility’s EUM Self Assessment and annual goal-share objectives.
Resource Guide to Effective Utility Management and Lean | 69

City of Palm Bay Utilities Case Study

Summary 

The City of Palm Bay Utilities Department (PBUD), located in Palm Bay, Florida, oversees three water and 

two wastewater treatment plants and serves over 32,000 water and 15,000 sewer customers. The 

overarching management framework for Palm Bay Utilities is its certified ISO Standard 14001:2004 

Environmental Management System (EMS), which covers both water and wastewater facilities, as well 

as the department. It is the only water and wastewater utility department in Florida to have the entire 

department registered to ISO Standard 14001:2004. PBUD’s EMS provides the utilities department with 

a powerful and proven structure for using process improvement tools, including Lean and Six Sigma 

methods, to achieve the outcomes described in the EUM Attributes. 

Summary of Results

PBUD’s Lean and EUM improvement efforts have produced impressive results. Below are selected 

results from improvement projects linked to the EUM Attributes: 

Water and Wastewater Treatment Plant Energy Efficiency Six Sigma Chartered Projects

• PBUD improved financial viability and operational optimization using Six Sigma techniques to 

facilitate a 39.8 percent reduction in energy costs at the water and wastewater treatment 

plants from the base year 2008 projected through 2012. 

• PBUD improved community sustainability and made operational optimization improvements 

by reducing greenhouse gas emissions by 16.8 percent from the base year 2009 projected 

through 2012 as a result of decreased energy consumption at the water and wastewater 

treatment plants. 

Utility Billing Improvement Project

• Through a Lean process improvement project using a kaizen event and value process 

mapping exercise, PBUD achieved improvements in financial viability through cost savings 

and avoided costs. For instance, with the elimination of a delinquency notice or second bill, 

the City realized a cost savings of approximately $33,000 annually. 
Resource Guide to Effective Utility Management and Lean | 70

Summary of Results, continued

Overall Process Improvement Program

• PBUD improved financial viability by saving approximately $1.15 million in 2011 through 

continuous improvement initiatives supported by Lean and Six Sigma methods, as well as the 

objectives, targets, and programs of the EMS. 

• PBUD bolstered employee and leadership development through a process improvement 

program that trained employees in Lean, Six Sigma, 5S+S, and other continuous 

improvement tools. 

• Bolstered financial viability by improving all bond ratings, both Standard and Poor’s and 

Moody’s since initiation of continuous improvement management framework and Lean 

improvement techniques; driving down operational costs and reducing environmental and

business risks. 

Utility Experience with EUM and Lean

In 2008, PBUD established its EMS, called “GreenWay,” and completed a strategic plan as part of the 

EMS process prior to final publication of the EUM Primer. PBUD developed its EMS with assistance from 

the University of Florida’s Center for Training, Research and Education for Environmental Occupations 

(TREEO).26 TREEO helped PBUD set up its EMS management framework and ISO standards, and it has 

conducted annual compliance evaluations since 2008 for the utility. PBUD completed the EUM Self 

Assessment tool as a litmus test of its EMS and found that its EMS aligned very closely with and 

supported all of the 10 Attributes. Having the opportunity to compare its EMS with another utility 

management and improvement framework developed by its peers gave PBUD confidence that its 

continuous improvement framework was headed in the right direction. 

PBUD has used Lean and Six Sigma to implement its EMS and address the EUM Attributes through a 

number of improvement projects. This includes projects in the three priority areas for improvement 

that PBUD identified in its EMS as significant environmental aspects:

• Energy use; 

• Production, handling, and disposal of biosolids; and

• Environment, safety, and health of the work force. 

PBUD began implementing Lean and Six Sigma methods in 2008. It embedded Six Sigma strategies, 

including the DMAIC (Define-Measure-Analyze-Improve- Control) process within its EMS to evaluate, 

analyze, and change processes when improvement is needed. PBUD trained several managers and staff 

(ranging from business managers to engineers) on Six Sigma and Lean methods on a volunteer basis; 

nine staff members have received training at the Six Sigma “green belt” level, and one has advanced Six 

Sigma “black belt” training. Black belts and green belts are people within an organization that are 

 

26 More information on TREEO and the EMS services they offer can be found on their website: http://www.treeo.ufl.edu/ems/. 
Resource Guide to Effective Utility Management and Lean | 71

trained in Six Sigma statistical methods. In addition to Six Sigma, PBUD has used Lean to support 

continuous improvement initiatives. For example, PBUD partnered with TechSolve, Inc., a not-for-profit 

professional services organization, to train staff on Lean methods and conduct three lean projects using 

kaizen events and value stream mapping, including one event described below on the utility billing 

process. PBUD also regularly uses the Lean 5S+S method (which is the 5S method with safety added) in 

its process improvement program. 

EUM and Lean Projects and Results

Water and Wastewater Treatment Plant Energy Efficiency Six Sigma Chartered Projects

Problem: Palm Bay Utilities’ EMS is based on a strong commitment to regulatory compliance, pollution 

prevention, and continual improvement. It takes a significant amount of energy to treat and process 

potable water and wastewater; thus, plant efficiency and reducing consumption of energy was a high 

priority for Palm Bay Utilities. Two sister Six Sigma chartered projects sought to reduce energy use and 

costs, consistent with the EMS implementation priority and the EUM attribute for operational 

optimization. 

Implementation Process: PBUD assembled a Six Sigma project team, which included a Six Sigma project 

champion, a green belt, and PBUD engineering and plant operations personnel. The team used the Six 

Sigma DMAIC process. No outside consultants were used for the project. The team began work by 

developing a project charter and identifying additional team members as supporters. The charter 

defined the project and included information such as: process start and stop points, process importance, 

process problem, project goals, process measurements, and the project time-frame. The team used a 

project template to document the charter. 

As a result of the desire to compare multiple water and wastewater treatment plants, PBUD decided to 

normalize incremental improvements by measuring treatment costs per 1,000 gallons of water treated. 

The resulting measurement plan included baseline costs for each plant for four cost categories (energy 

use costs, chemical costs, labor costs, and maintenance costs) and then compared component and total 

costs by plant. For each water plant, for instance, measurement showed that energy costs were the 

greatest of the four cost categories. The water plants with the greatest energy cost per 1,000 gallons of 

treated water were identified as high priority for cost-reduction efforts. Based on the Six Sigma study, 

PBUD set an annual goal to achieve a minimum 10 percent reduction in electrical costs each fiscal year.27 

Reporting each month on the progress of reduction efforts and providing a Six Sigma control plan were 

important in capturing incremental improvements and sustaining them once captured. 

Results: To achieve the annual reduction in electrical costs, PBUD personnel made process changes to 

allow each treatment plant to run at its most efficient capacity. The graphs below illustrate the annual 

energy cost reductions for water and wastewater treatment plants from reduced electrical consumption 

 

27 Sustainable Palm Bay, City Initiatives, http://gogreen.palmbayflorida.org/CityInitiatives_Utilities.html (Accessed May 15, 2012). Personal 

correspondence with Dan Roberts of Palm Bay Utilities.
Resource Guide to Effective Utility Management and Lean | 72

for water and wastewater treatment measured from a base year of CY 2008 and the metric tons of 

carbon dioxide equivalent reduction measured from the base year of 2009. 

Annual Energy Cost Reduction and Treatment Flow

(City of Palm Bay Utilities Department's Water and Wastewater Treatment Plants)

$1,138,667

$1,059,980

$850,559

$775,197

$684,995

3457

3272 3307 3341 3383

1500

2000

2500

3000

3500

4000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2008 (Base Year) 2009 2010 2011 2012 (projected)

Total Annual Energy Cost 

Total Annual Flow (MG)

Calendar Year Total Annual Energy Cost

Total Flow
Resource Guide to Effective Utility Management and Lean | 73

Metric Ton (mt) of Carbon Dioxide Equivalent (CO2e)-Electrical Use

(City of Palm Bay Utilities Department's Water and Wastewater Treatment Plants) 

6328

6121

5417 5265

0 

1000

2000

3000

4000

5000

6000

7000

2009 (Base Year) 2010 2011 2012 (projected)

Metric Tons (CO2e)

Calendar Year Metric Tons CO2e

(- 3.3% reduction from 2009)

(- 14.1% reduction from 2009)

Benefits from the Water and Wastewater Treatment Plant Energy Efficiency Six Sigma Projects include:

• Six Sigma techniques improved financial viability and operational optimization to facilitate a 32-

percent reduction in energy costs at the water and wastewater treatment plants from the base 

year 2008 through 2011.28 The results were monitored and improved through the use of the Six 

Sigma DMAIC process over multiple years. Peak power rate periods were identified and plant 

operation, plant processes and equipment operation were manipulated and controlled resulting 

in lower peak power charges. Acidization of a deep injection well provided efficiencies in 

pumping, providing for one pump to be used routinely rather than three. Variable Frequency 

Drives for selected pumps were installed further driving energy use and costs downward. 

• Financial viability was improved achieving an 11.7-percent cost savings in energy use alone at 

the potable water treatment plants in spite of rate increases. The result was an 18-percent 

28 Sustainable Palm Bay, City Initiatives, http://gogreen.palmbayflorida.org/CityInitiatives_Utilities.html (Accessed May 15, 2012).

 
Resource Guide to Effective Utility Management and Lean | 74

overall budgetary savings in plant energy costs in 2008 from the base line year of 2007, which 

was the original base line year for the water treatment plants’ Six Sigma project.

29

• Community sustainability and operational optimization improved by reducing greenhouse gas 

emissions by 23.7 percent from the base line inventory year of 2009 through 2011 as a result of 

decreased electrical energy and fossil fuel consumption.

 

30

• Customer satisfaction improvements were achieved through the reduced energy and cost 

savings from Lean and Six Sigma implementation. These cost reductions allowed PBUD to 

minimize rate increases, ultimately benefiting its customers. 

 

These two Six Sigma projects were formulated and implemented by utilities personnel without 

significant costs or consultant assistance. Embedding the Six Sigma project in an established EMS 

provided a synergy or “added value” to the resulting efficiencies that neither continuous improvement 

method, applied alone, could achieve or sustain over an extended period. Some energy solutions are 

process- or design-oriented, while others are related to behavioral or operational issues, and an EMS is 

well suited to address each of these categories. Furthermore, an EMS like that of PBUD is not only an 

environmental management system, it also has the parameters of an ISO Standard 9001:2008 Quality 

Management System, and is well suited to provide the quality control of documented procedures and 

processes to base improvement upon whether the improvements are process, design-oriented, 

behavioral or operational. The Six Sigma methodology allowed for a structured team approach, 

technical tools, and continuous improvement methodology for incremental improvements that were 

captured and maintained utilizing the quality management system components of an EMS and the 

control measures of the Six Sigma process. Having a structured, technical process-improvement tool 

embedded in an environmental management framework allowed improvements to be realized, 

documented, and most importantly, sustained. 

Utility Billing Improvement Project

Problem: The Finance Department and Utilities Department had an overly complicated and inefficient 

process for utility billing, as the result of several years of “process creep” in which the process had 

become increasingly complex and time consuming. As a result, PBUD was experiencing delays in 

customer inquiries, hookups, meter reading, and billing practices. In 2009, the Finance and Utilities 

Departments and associated divisions participated in a Lean kaizen event, or rapid improvement 

process, on the utility-billing process. This Lean event sought to reduce the process time and complexity 

of the utility billing process and increase overall efficiencies concerning revenue collection. 

Implementation Process: This project was one of three initial Lean events that the not-for-profit Lean 

service provider TechSolve, Inc. facilitated for PBUD. Prior to the event, with the assistance of 

TechSolve, the Finance and Utilities Departments identified the key stakeholder groups and formed 

 

29 Dan Roberts, Utilities Department, Palm Bay, Florida, “Establishing an Accountability Management System in the Palm Bay Utilities 

Department,” Government Finance Review (December 2009). 30 These calculations were based on the protocol guidance of the Local Government Operations Protocol, Version 1.1, as was the entire City of 

Palm Bay Governmental Operations Greenhouse Gas Emission Inventory.
Resource Guide to Effective Utility Management and Lean | 75

implementation teams for the project. They also took part in team chartering meetings to clarify the 

expectations, scope, and logistics for the Lean event. Finally, the teams identified performance 

measures and gathered data about the workflow processes in both departments. 

At the three-day event, PBUD and Finance Department staff, with assistance from the TechSolve 

facilitator, reviewed and created a visual map of the current state of the process of utility billing (a 

current state value stream map), in “swim-lane” format, which places emphasis on concurrent steps. 

They identified places on the map where there were non-value added steps in the process, and 

recognized improvement opportunities, as well as process metrics. The team then created a map of a

new and improved process (a “future state” value stream map) and developed new performance 

metrics and targets to help achieve, sustain, and continuously improve the future-state goals. The 

future state map provided detailed documentation of each step in the new process, along with process 

metrics and improvement projects. In addition to creating the current state and future state maps, the 

team also developed a roadmap for implementation. This document bridged the current and future 

states of the utility billing process and documented all needed changes, associated responsibilities, and 

a timeline. 

Results: Through a Lean project, PBUD was able to reduce the time and complexity of the utility-billing 

process, as well as improve customer-service practices around billing processes, which achieved better 

customer satisfaction. The Utility Billing Improvement Project resulted in:

• Financial viability improved through cost savings and avoided costs. For instance, with the 

elimination of a delinquency notice or second bill, the City realized a cost savings of 

approximately $33,000 annually.31

• Operational optimization improved through reduced processing time, number of process steps, 

and complexity. For example, through the value stream process, it was apparent that the 

initiation process for water service was too complicated and involved numerous personnel from 

different departments. In the typical initiation process, the Building Department sent a 

representative to inspect the backflow preventer and then the building inspector called or 

issued a work order for a member of the Utilities Department’s staff to come back to the site to 

turn on the water. The simple fix was to eliminate the travel to and from the work site and 

allow the building inspector to turn on the water upon a satisfactory inspection. This process 

reduction also allowed for fewer miscommunication issues between departments, and valuable 

time, energy, and resources were conserved.

 

32

• Operational optimization and customer satisfaction improved by creating more balanced meter 

reading routes to reduce scheduling issues and unnecessary stress on staff. PBUD also gave

laptops to field service representatives which enabled them to create work orders in the field. 

This enhancement eliminated unnecessary fuel costs associated with travel back to the office to 

pick up work orders, ultimately freeing up time for employees to provide more value-added 

 

31 Dan Roberts, Palm Bay Utilities Department, personal communication, 20 June 2012. 32 ibid
Resource Guide to Effective Utility Management and Lean | 76

services for the customer. The event also empowered staff to accept late payments in the field 

to reduce staff’s travel time to a customer’s residence, avoiding further staff time and fuel 

usage.

33

Process Improvement Program

Approach: As part of its EMS continuous improvement framework, PBUD established a process 

improvement program focused on employee and leadership development. The process improvement 

program includes staff training on Lean tools including analytic tools such as Pareto charts, workplace 

organization/standardization tools like 5S+S (5S plus safety), visual management strategies such as 

storyboards for displaying project activities and metrics, and other process-improvement tools. 

One of the focuses of the process improvement program was around standard work. PBUD developed 

and regularly uses templates for standardized processes, procedures, and standard operating 

procedures (SOPs). The use of templates was particularly helpful to ensure that SOPs and processes 

addressed ISO 14001:2004 elements (e.g., purpose, scope responsibilities, associated documents, 

measurements, records, etc.). For example, a ten-paragraph template for SOPs provided a standard 

template for use by managers that streamlined the implementation process and provided replicability, 

familiarity, commonality, and quality control aspects to document control efforts. The critical element 

to the success of the standard work procedures was communication and training for all staff involved in 

developing and using the templates, procedures and SOPs. PBUD relied on an aggressive training 

program and utilized a pocket guide of tools for continuous improvement and effective planning. “The 

Memory Jogger II” by Michael Brassard and Diane Ritter (see Appendix B) was provided to each Core 

and Implementation Team members early in the implementation period. It provided a common 

reference point to learn and apply tools to situations that would improve the procedures, systems, and 

quality. 

The process improvement program also requires that PBUD staff participate in at least two process 

improvement activities per year. Many of these process improvement projects use the Lean 5S+S

method, which is a 6-step process for creating and maintaining a clean, neat, orderly, and safe work 

environment for employees. PBUD uses a standard template (a Process Improvement Form) to 

document and verify process improvements completed by employees; this form records the type of 

improvement, techniques or tools used to implement the improvements, and quantification of the 

financial benefit (increased revenue, cost avoidance, cost savings) for the process improvements. The 

documentation provides the basis for undertaking detailed process improvement efforts within PBUD 

divisions and throughout the organization. Supervisors and division managers verify the improvements 

and financial impact, and the results and improvement ideas are circulated between divisions to seed 

ideas. 

 

33 Dan Roberts, Palm Bay Utilities Department, personal communication, 20 June 2012.
Resource Guide to Effective Utility Management and Lean | 77

Results: 

• PBUD improved financial viability by saving approximately $1.15 million in 2011 through 

continuous improvement initiatives supported by Lean, Six Sigma methods, and objectives, 

targets, and programs embedded in the EMS.34

• PBUD bolstered employee and leadership development through a process improvement 

program that trained employees in Lean, Six Sigma, and other problem-solving continuous 

improvement tools. Subsequently, a higher level of competence and confidence encourages 

employee involvement and leadership in improvement efforts. 

 

• In about 18 months of implementation, 70 percent of the utility’s workforce participated in the 

program and documented 124 process improvement actions, using Lean tools including 5S+S, 

standard work, and visual controls.35

• Improved operational optimization by standardizing work truck cargo beds in one improvement 

project using 5S+S. A simple rack mechanism for carrying hand tools was fabricated and 

replicated for installation on work truck bed sides to organize and standardize hand tools. The 

process improvement prevented damage to tools and other equipment and provided for a more 

organized, and thus more efficient and safe work environment.

 

36 

The program has addressed a wide range of utility processes and EUM attribute areas. Examples of 

improvement efforts include the following:

• Objectives, Targets, and Programs from EMS Implementation.

• Enhanced financial viability through improvements in all bond ratings, both Standard and Poor’s 

and Moody’s, since initiation of continuous improvement management framework and Lean 

improvement techniques. Operational costs were driven down, reducing environmental and 

business risks. Both the previous and current utilities director’s attributed the improvement to 

cost savings and reduced environmental and business risk brought about by the continuous 

improvement management framework and embedded continuous improvement tools.37

Looking Forward to the Future

Since implementing an EMS, PBUD has been recognized with numerous awards for operational 

excellence, regulatory compliance, and environmental and safety performance. PBUD was only one of 

six utilities in the nation recognized in 2010 for an AMWA Gold Award and, at the time, only one of nine 

utilities in the nation to be awarded the Gold Award since the EUM criteria were added to the 

application. The new PBUD reverse osmosis plant won the American Membrane Technology 

Association’s (AMTA) national award for superior plant operations in 2011. PBUD has also achieved 

 

34 Dan Roberts, Utilities Department, Palm Bay, Florida, “Environmental Management Systems (EMSs): A Key to Financial Viability,

Environmental Excellence - and Worthy of Regulatory Incentives,” 2012, http://www.peercenter.net/ewebeditpro/items/O73F24974.pdf 35 ibid 36 Dan Roberts, Palm Bay Utilities Department, personal communication, 20 June 2012. 37 ibid
Resource Guide to Effective Utility Management and Lean | 78

many state operational excellence awards from industry and regulatory associations and agencies since 

implementation of a continuous improvement EMS. 

PBUD plans to continue to embed Lean, Six Sigma methods, process improvement tools, and the ANSI 

Z10 Safety Management System in its EMS and build on the success it has had in the past several years. 

The operational improvements, cost savings, and employee health and safety improvements achieved 

through the EMS and Lean methods continue to drive PBUD to identify other improvement 

opportunities to achieve EUM outcomes. 
Resource Guide to Effective Utility Management and Lean | 79

City of Pompano Beach Utilities Case Study

Summary 

The City of Pompano Beach Utilities Department (Pompano Beach Utilities), located in Pompano Beach, 

Florida, oversees two water treatment plants and one water reuse treatment plant and serves nearly 

80,000 customers. Pompano Beach Utilities used the EUM Attributes and the EUM Self Assessment to 

draft an action plan that drives its improvement activities. The utility regularly uses processimprovement tools from Lean and Six Sigma to enable the utility to increase its overall productivity. 

Summary of Results

Pompano Beach Utilities’ Lean and EUM improvement efforts have produced impressive results. 

Below are selected results from the ICanWater Reuse Connection improvement project linked to the 

EUM Attributes: 

ICanWater Reuse Connection Program

• Improved water resource adequacy and community sustainability by using Six Sigma tools to 

potentially save 92.4 million gallons of water as a result of the ICanWater Reuse Connection 

Program in 2011–13 (if all 770 connections are accomplished). Over 10 billion gallons of 

water have been saved by the OASIS Reuse Program since 1989. 

• Improved water resource adequacy and operational optimization by completing 270 reuse 

connections between October 2011 and April 2012, with 770 planned by July 2013. This 

represents an increase from 1.5 to 35 connections per month on average due to the project.

• Improved customer satisfaction by promoting the ICanWater Program, which creates lower 

customer watering bills, allows nearly unrestricted watering, and reduces fertilizer usage. A 

reuse customer that uses approximately 10,000 gallons of water per month (4,000 for 

irrigation) can expect to save approximately $200 per year.

• Improved community sustainability and water resource adequacy by extending the drinking 

water supply, lowering future capital costs for upgrades to the water plant and other 

alternative water supplies, preventing saltwater intrusion and protecting drinking water 

wells, and providing jobs for local plumbers.
Resource Guide to Effective Utility Management and Lean | 80

Utility Experience with Effective Utility Management and Lean 

In 2009, Pompano Beach Utilities hired Sunesis Consulting Group to conduct an EUM training session 

and complete the EUM Self Assessment with a variety of staff including Utilities, Human Resources and 

Finance (Customer Service) directors. Pompano Beach Utilities used the Self Assessment process to 

identify its strengths and areas for improvement within each Attribute area. Based on the results of the 

Self Assessment, Pompano Beach Utilities drafted an action plan to address high priority areas. The high 

priority attributes were: (1) product quality, (2) financial viability, (3) infrastructure stability, (4) 

operational optimization, and (5) employee and leadership development. Pompano Beach Utilities did 

not prioritize customer service in the top five attributes as managers felt that by focusing on the “core” 

processes, that many of the customer service issues would be addressed. 

After completing the Assessment, the utility created two groups to focus on safety and job performance 

standards based on the action plan and then used the Lean failure mode effects analysis (FMEA) method 

to make improvements. FMEA is a systematic method for evaluating a process to identify where and 

how it might fail. The method also assesses the relative impact of different failures, in order to identify 

the parts of the process that are most in need of change. Pompano Beach Utilities used FMEA to 

evaluate possible failures in each step of specific jobs or tasks. This analysis led to the addition of 

personal protective equipment and other controls that were required or would reduce workplace 

hazards. Pompano Beach Utilities also documented the safety requirements based on the expected 

failures for each safety and job performance task for employee and supervisor reference.

After its initial use of FMEA, Pompano Beach Utilities began using a variety of Lean and Six Sigma tools 

to achieve its desired outcomes identified in the EUM Self Assessment, as noted above. Utility staff 

discovered Lean tools through research and conducted training for staff on Lean and Six Sigma based on 

materials from reference books. Pompano Beach Utilities now regularly uses Lean tools, including:

• Failure mode effects analysis.

• Value stream mapping (a map that depicts the flow of all the activities and information needed 

to produce a product or deliver a service, and examine key process metrics.).

• Fishbone diagrams and failure mode effects analysis (root-cause analysis problem-solving tools). 

• Critical-to-customer analysis (a method for assessing and categorizing issues relevant to the 

customer) that can be useful to help analyze issues relevant to a process. 

• Six Sigma improvement cycle, Define-Measure-Analyze-Improve-Control (DMAIC) for larger 

improvement projects. (DMAIC is a data-driven improvement cycle used for improving, 

optimizing, and stabilizing business processes and is the core process used to drive Six Sigma 

projects). 

Pompano Beach Utilities participates in the Florida Benchmarking Consortium (FBC), which is an intrastate collaboration of local governments seeking to improve the delivery of local government services 

through the use of performance measurement data and benchmarking tools and techniques. Pompano 
Resource Guide to Effective Utility Management and Lean | 81

Beach Utilities compares its performance metrics and best practices with other utilities in the FBC, and 

uses EUM and Lean tools as part of this comparison to identify other potential areas of improvement. 

Lean and EUM Projects and Results 

ICanWater Water Reuse Connection Program 

Problem: In 2011, in response to low residential customer water reuse connections, Pompano Beach 

Utilities used the Six Sigma methodology to improve the process and launch the ICanWater Water Reuse 

Connection Program. The ICanWater Reuse Connection Program is part of a broader utility reuse 

initiative called Our Alternate Supply Irrigation System (OASIS). ICanWater is a campaign to target single 

family residential reuse connections. Water reuse connections or “purple pipes” are a system for 

delivering reclaimed water for landscape irrigation. Pompano Beach Utilities’ customers were paying 

close to half of their water bill on watering their lawns and were restricted to specific days they could 

water. Even though water reuse rates were significantly lower than potable water rates, customers 

were not signing up for reuse connections. For example, rates for reuse start at 85 cents per 1,000 

gallons, compared to $2.24 for potable water.38 This project sought to increase water reuse connections 

and make other improvements in the program consistent with the EUM Attributes for water resource 

adequacy and community sustainability. 

Implementation Process: Pompano Beach Utilities used the Six Sigma DMAIC process to improve the 

reuse connection program using the steps described in detail below.

• Define: Pompano Beach Utilities defined its problem statement as low single family residential 

customer water reuse connections. Unlike multifamily and commercial customers, the single 

family residential customers were not mandated to connect to the reuse system.

• Measure: In the “Measure” data collection step, the utility noted that it had installed 73 

connections in the four years preceding the project (1.5 connections per month on average). 

Based on customer billing records, Pompano Beach Utilities set its goal for 770 connections for 

the first two years of the ICanWater Program with an ideal goal of 1,200 connections. 

• Analyze: Based on the data target identified in the “Measure” step, Pompano Beach Utilities 

analyzed all reuse connection data sources to determine root causes of problems. The utility 

examined customer impediments to water reuse connections using a modified critical-tocustomer analysis and created a value stream map of the existing water reuse connection 

process. (A critical-to-customer analysis is a method for method for assessing and categorizing 

issues relevant to the customer. Value stream maps visually depict the flow of all the activities 

and information needed to produce a product or deliver a service, and examine key process 

metrics.) Using the critical-to-customer analysis and the current state process map, Pompano 

Beach Utilities listed all the complaints and impediments it received about why residential 

customers did not want a reuse connection. The utility also used a public relations firm to 

telephone eligible customers to determine why they were not connecting to the reuse system. 

 

38 ICanWater, Why I Can Water, http://www.icanwater.com/why-i-can-water/ (accessed May 23, 2012).
Resource Guide to Effective Utility Management and Lean | 82

The team then identified unnecessary steps in the process and opportunities to implement 

desired outcomes, as well as reviewed customer comments on the reuse connection program. 

• Improve: Pompano Beach Utilities used brainstorming to identify creative solutions to fix and 

prevent process problems. In particular, utility staff brainstormed options to connect customers 

based on the problems identified during the “Analyze” step. After brainstorming, the team 

created a map of the new process. Pompano Beach Utilities then identified and itemized the 

major components critical to implementing the new reuse process using an implementation 

matrix and task list. The general categories of tasks included:

– Financing

– Ordinance changes

– Contractor selection process

– Public relations firm selection

– Backflow manual changes

– Changes to City department processes

– Updating website and adding new pages

– Creating a hotline

– New automated meter program (project described below)

When all of the tasks were completed, Pompano Beach Utilities hosted several meetings with 

other city department staff to finalize and fine tune the new reuse connection process. Using 

feedback from the meetings, Pompano Beach Utilities created a revised process map for the 

new process and conducted simulations of the process using table-top exercises. The utility 

piloted the process with one customer, resolved issues identified during the pilot, and then 

continued to refine the reuse connection process as customers made connections in the 

program.

• Control: The “Control” step is focused on monitoring the improvements to ensure continued 

success. Pompano Beach Utilities used a time series plot to track the number of reuse 

connections per week, including number of customers signed up and number of connections 

installed (see graph below). Pompano Beach Utilities also used the plot to compare the rate of 

connections to the program’s goals and grant requirements. 

When the connection rates plateau, Pompano Beach Utilities studies the process to look for 

bottlenecks that could be contributing to the stagnant rates. For example, in December 2011 

Pompano Beach Utilities saw the number of connections completed decrease and continue to 

remain low into January and February 2012, while the number of customer sign-ups was 

increasing. The Utilities Department examined the process for bottlenecks in late February 2012 

and as a result, the connection rates improved and the delta between signups and connections 

decreased. In addition, the Department sends out surveys to customers that have installed 

reuse connections and monitors hotline messages for dissatisfaction or trends in complaints.39

 

39 Maria Loucraft, Pompano Beach Utilities, personal communication, 27 April 2012.

 
Resource Guide to Effective Utility Management and Lean | 83

Pompano Beach Utilities selected the DMAIC process for the ICanWater Reuse Connection Program 

because of its emphasis on using data to identify areas for improvement. In addition, the utility did not 

want to experience any failures in the implementation of the ICanWater Program and felt that the 

DMAIC process provided a structured approach with a focus on continuous review and improvement. 

By using Six Sigma methods, Pompano Beach Utilities was also able to address many high-priority 

attributes identified in its EUM Self Assessment and described in more detail below.

Results: By using Six Sigma’s DMAIC method, Pompano Beach Utilities achieved the following results 

from its ICanWater Reuse Connection Program:

• Improved water resource adequacy and operational optimization by completing 270 reuse 

connections between October 2011 and April 2012, with 770 planned by July 2013.40

• Improved water resource adequacy and community sustainability by using Six Sigma tools to 

potentially save 92.4 million gallons of water as a result of the ICanWater Reuse Connection 

Program in 2011–13 (if all 770 connections are made). Over 10 billion gallons of water have 

been saved by the OASIS Reuse Program since 1989.

 This 

represents an average of 35 connections per month over the October 2011 to July 2013 period, 

which vastly exceeds the pre-project average rate of 1.5 connections per month.

41

 

40 Pompano Beach Oasis Reuse Water Utilities, Customer Connection Program Presentation, 24 April 2012. 41 ICanWater, About OASIS, http://www.icanwater.com/about-oasis/ (accessed May 23, 2012).
Resource Guide to Effective Utility Management and Lean | 84

“Lean is the how to accomplish the 

outcomes described in EUM. It is a 

powerful tool because it can be adapted 

to best suit the process or project that 

needs improvement. To be effective, 

utilities must keep the process and tools 

simple.”

– Randy Brown, Utilities Director, Utilities 

Department, City of Pompano Beach, 

Florida and Maria Loucraft, Utilities 

Compliance and Efficiency Manager,

Utilities Department, City of Pompano 

Beach, Florida

• Improved customer satisfaction by 

promoting the ICanWater Program which 

creates lower customer watering bills, 

allows nearly unrestricted watering, and 

reduces fertilizer usage. A reuse customer 

that uses approximately 10,000 gallons of 

water per month (or 4,000 gallons for 

irrigation) can expect to save 

approximately $200 per year.42

• Improved community sustainability and 

water resource adequacy by extending the 

drinking water supply, lowering future 

capital costs for upgrades to the water 

plant and other alternative water supplies, 

preventing saltwater intrusion and 

protecting drinking water wells, and 

providing jobs for local plumbers.43

• Improved customer satisfaction through 

the ICanWater Program by allowing reuse customers to water their lawns any day of the week 

before 10 a.m. and after 4 p.m.44

• Improved water resource adequacy by increasing water reuse and thereby freeing up more 

potable water for future growth and conservation.

 

45

• Increased community sustainability through the ICanWater Program by helping to ensure 

compliance with the City of Pompano Beach’s Consumptive Use Permit and providing water for 

future growth.

 

46

• Improved stakeholder understanding and support by educating the public on water reuse 

through the ICanWater Program website.47

Automated Meter Reading Project

In a related project, Pompano Beach Utilities used the Six Sigma DMAIC process to implement an 

automatic meter reading process to support the ICanWater Reuse Connection Program. The project 

sought to improve system performance, making it more cost effective and reliable consistent with the 

EUM attribute for operational optimization. The utility used DMAIC because it needed a method that 

included a rigorous system for checking and evaluation at each step of the process, which helped to 

 

42 Pompano Beach Oasis Reuse Water Utilities, Customer Connection Program Presentation, 24 April 2012. 43 ibid 44 ICanWater, When I Can Water, http://www.icanwater.com/when-i-can-water/ (accessed May 23, 2012). 45 Randy Brown and Maria Loucraft, Pompano Beach Utilities, personal communication, 25 June 2012. 46 ibid 47 ibid
Resource Guide to Effective Utility Management and Lean | 85

avoid failures in the automated meter reading. Pompano Beach Utilities achieved the following results 

from its automated meter reading project:

• Improved operational optimization by installing over 19,000 meters, with 99 percent of meter 

information recorded correctly. 

• Improved customer service and community sustainability by saving energy and eliminating 

drive-bys to read the water meters, saving gas and allowing staff to be redirected to other areas. 

The automated meter reading system will also produce detailed water usage histories, which 

will allow us to identify leaks and backflow problems and assist customers with more detailed 

information on their usage. 

“Lean and Six Sigma tools provide an 

opportunity to collaborate with other 

utilities in training events and working 

together on process improvement, 

particularly for small utilities.“

– Randy Brown, Utilities Director, Utilities 

Department, City of Pompano Beach, 

Florida and Maria Loucraft, Utilities 

Compliance and Efficiency Manager,

Utilities Department, City of Pompano 

Beach, Florida

Looking Forward to the Future 

In July 2011, The Florida Water and Pollution 

Control Operators Association selected the 

Pompano Beach Utility’s Department Safety 

Program as a winner in the "Utility Overall" 

category. Pompano Beach Utilities also received a 

“Top Ten Safety Award” in May 2011 from The 

Florida Water Environment Association. 

Pompano Beach Utilities also revisits its initial EUM 

Self Assessment completed in December 2009 

annually to determine what it has accomplished 

and what remains to be budgeted for and 

implemented. The Utilities Department has also created a position to manage the efficiency and 

process improvement efforts as well as permits and regulatory compliance. Once the high-priority 

projects identified in the initial EUM Self Assessment have been completed, Pompano Beach Utilities 

plans on conducting another EUM self assessment and developing a new action plan.

Pompano Beach Utilities plans to continue using Lean and Six Sigma tools in its EUM and process 

improvement efforts in the future, building on the successes it has had in the past several years. Senior 

managers of the utility will be attending additional training on Lean and Six Sigma in the fall of 2012, to 

become more familiar with the methods and help Pompano Beach Utilities to identify other 

opportunities to achieve EUM and continual improvement outcomes. 
Resource Guide to Effective Utility Management and Lean | 86

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Resource Guide to Effective Utility Management and Lean | 87

Appendix D: Sample Templates

This appendix includes several sample templates for Lean and Six Sigma processes. Templates can 

enable effective and replicable applications of Lean and Six Sigma tools, help train staff, and sustain a 

successful implementation of a continual improvement framework and the key aspects of EUM. They

also can help facilitate quality, consistency, and sustainability of processes and procedures. 

All of the templates included in this Resource Guide, with the exception of the Lean Event Charter, have 

been used by water-sector utilities for their Lean and Six Sigma processes. The templates are not 

exhaustive but are meant to be examples of documents that help support Lean and Six Sigma projects.

The sample templates include: 

• Lean Event Charter: The charter is an important document that sets out the scope of the process 

that will be addressed in the event, establishes the goals and objectives of the event, identifies any 

work that must be completed prior to the event, and identifies all the participants of the event.

• Six Sigma Plan-Do-Check-Act Project Worksheet: This worksheet enables the user to walk through 

all the steps of the Plan-Do-Check-Act and Define-Measure-Analyze-Improve-Control Six Sigma 

process steps. It breaks down each step into individual components and includes a column to track 

tools used and results.

• Root Cause Analysis “Fishbone” Diagram: The fishbone diagram is used to illustrate the causes of a 

specific event or problem. The causes are usually grouped into major categories to identify the 

sources of variation or errors. The category of causes in the sample template include:

– Machines/Plant Equipment

– Methods/Procedures

– Materials/Money/Policies

– Manpower/People

• SIPOC Process Definition Sheet: SIPOC stands for Suppliers-Inputs-Process-Outputs-Customers and 

is a framework for analyzing the requirements of a process. A SIPOC process definition sheet is a 

tool used in Six Sigma to map an organization’s current process so it can quickly define, document, 

analyze, prioritize, and recommend solutions and follow-up plans. 

• Process Improvement Form: This form is designed to support an overall process improvement 

program by describing, categorizing, and estimating the benefits from process improvement 

projects, including cost savings, cost avoidance, and increased revenues. These improvements can 

include team-based projects or individual efforts, and the form provides a system for obtaining 

verification of the changes and results. Some utilities have found this form to be particularly useful 

for soliciting and documenting process improvements that use the Lean 5S+S (5S+Safety) method. 

This form can also be used as part of a program to incentivize improvement efforts. 
Resource Guide to Effective Utility Management and Lean | 88

Lean Event Charter

[Organization]

[Department of event and event name]

[Event Date]

SCOPE

The breadth, or area, of opportunity to change and improve [e.g., this event will address the process 

from / of _________to ____________.]

GOALS

[A narrower version of the scope of the improvement event.]

OBJECTIVES

Specific numbers or percentages

For example:

1. Reduce lead-time by XX%, from ___ to ___.

PARTICIPANTS (Typically 6-12; no more than 20 people/event)

Project Team

Team leader: [Insert Team Leader Name, Department] 

Facilitator: [Insert Facilitator or Consultant Name] 

Team Members: [Insert Name, Department]

(members can be from inside & outside process) [Insert Name, Department]

[Insert Name, Department]

[Insert Name, Department]

Etc.

PRE-WORK

1. [e.g., determine average lead time] (name person responsible)

2.

FOLLOW-UP DATES 

Month, day, year – 30 day 

Month, day, year – 60 day

Month, day, year – 90 day

Month, day, year – 6 month

Month, day, year – 1 year
Resource Guide to Effective Utility Management and Lean | 89

Six Sigma Plan-Do-Check-Act Project Worksheet

Process / System: ________________________ Start Date: __________________________

Team: _________________________________ Completion Date: _____________________

Step Element Tools / Results

PLAN

Step 1:

Define

Assemble & support the right team 

Create a team charter

Clearly define the problem: Establish a 

concise problem statement in sentence form

Identify internal & external customers 

affected by the problem, & establish a 

process for coordinating w/ & gaining 

preliminary approvals (as necessary)

Identify the customers’ requirements that 

are critical to quality (CTQ)

PLAN

Step 2:

Measure

Set measurable goal(s)/milestones(s) for the 

problem solving effort.

Identify measures (Results) to monitor that 

reflect process or system performance. 

Align with customer requirements.

PLAN

Step 3:

Analyze

Map the process: Identify the processes 

that impact the problem and select one. List 

the steps in the process that currently exists. 

Map the Process and validate.

Identify Root causes of the problem. 

Collect and analyze data related to the 

problem. Use metrics, results, data, etc. 

(Collect additional data if needed to verify 

root causes.) 

Determine variance in the process & what is 

acceptable. Align with customer 

requirements.

Verify or revise the original problem 

statement (as needed). Develop a 

hypothesis.

DO

Step 4:

Improve - 

Develop 

Solutions

Generate potential solutions that will 

address the root causes of the problem.

Select a solution: Establish criteria for 

selecting a solution. 

Plan the solution: Establish SMART 

goals/action items

Gain approval & support of the chosen 

solution from customers/stakeholders & 

plan accordingly.
Resource Guide to Effective Utility Management and Lean | 90

Step Element Tools / Results

DO

Step 5:

Improve - 

Implement

Implement the chosen solution on a trial/ 

pilot basis

If the Problem Solving Process is being used 

as a standalone, continue to Step 6. If the 

Problem Solving Process is being used in 

conjunction with the Continuous 

Improvement Process, go to Step 7. 

CHECK

Step 6:

Evaluate/Analyze 

the Results 

Gather and analyze data on the solution. 

This step may include additional study, 

including research and detailed analyses of 

collected data and review of 

customer/stakeholder feedback 

information. 

Achieved the 

Desired Goal?

If YES, go to Step 7. 

If NO, go back to Step 1.

ACT

Step 7:

Control - 

Standardize the Solution 

and 

Capitalize on New 

Opportunities

Adopt Solution: Identify systemic changes & 

training needs for full implementation & 

adopt solution. Standardize, document, & 

institutionalize solution.

Continue to improve process: Plan ongoing 

monitoring of the solution and continue to 

look for incremental improvements to refine 

the solution

Look for another improvement opportunity 
Resource Guide to Effective Utility Management and Lean | 91

Root Cause Analysis “Fishbone” Diagram
DRAFT: 

SIPOC Process Definition Sheet 

Resource Guide to Effective Utility Management and Lean | 92

Revision Date: 

Key Process: 

Purpose: 

Process Owner(s) (include at least one Internal Customer/Supplier): 

Suppliers Inputs Process Steps Outputs Customers

 External

Internal

Customer Requirements:

How Requirements Determined:

Performance Indicators:

Direct (Leading):

Indirect (Lagging): 

Control Strategies:
DRAFT: Resource Guide to Effective Utility Management and Lean | 93

Process Improve

(Instructions for completing this form are l

Division/Section: 

Name/Team Name: 

Team Member Names: 

Approved By: Supervisor: 

Process Improvem

(If increased revenue, cost savings or cost avoidance doc

 Increased Revenue Improved Morale 

 Cost Savings Product Improveme

 Efficiency/Productivity Cost Avoidance

 Waste Reduction Other ____________ 

 Pre-Improvement Pro

Process Improv

Process Improvement Impact (cost savings - Decision or a

objectives of a purchase, at a cost lower than the historica

Cost avoidance may incur higher (or additional) costs in th

would be lower, example replacing a part before it fails an

costs or replacement of more expensive components; incr

$/day $/week 

ment Form 

ocated on the following page) 

Date: 

Position: 

Division Manager: 

ent Type 

ument actual dollar impact at bottom of page.)

 Improved Safety/Health

nt Pollution Prevention

 Customer Service/Satisfaction 

cess Description 

ement 

ction that will result in fulfillment of the 

l cost or the projected cost; cost avoidance - 

e short run but the final or life cycle cost 

d thus saving the expense of higher repair 

eased revenue - estimate for FY) 

$/month $(FY Savings)
DRAFT: Resource Guide to Effective Utility Management and Lean | 94

 

Guide and Instructions for Completion of the Process Improvement Form

A documented process improvement is an improvement that has been accomplished and is providing 

benefits to the Utilities Department. The instructions below will assist in completing the form. 

Division/Section/Date: If more than one section or division participated in the improvement all are to be 

identified. The date on the form is to be the date the form is completed.

Name/Team Name: An individual or team name can be provided; if a team name is provided, team member

names should be listed with associated positions (a continuation sheet may be attached). 

Approved by Supervisor/Division Manager: The immediate Supervisor and Division Manager will validate 

the process improvement. Division Manager improvements will be validated by the Utilities Director. 

Validation will entail review of the improvement and its documentation to ensure that the process addresses 

improvement types correctly, the cost benefits are verifiable and accurate, and the process improvement 

form has been completed in accordance with these instructions.

Process Improvement Type: Place a check beside the improvement type that most closely captures the type 

of improvement. More than one type of improvement may be identified for a process that was changed or 

initiated; however, no more than three of the most important are to be identified. A cost savings or cost 

avoidance, if applicable, will always be identified as an improvement type if multiple improvement types are 

identified. An example of cost avoidance would be a process that avoids incurring some future cost – a cost 

savings would be a process that saves money now; a process improvement could do both. An example of a 

process improvement having multiple improvement types is the purchase and use of the automatic valve 

exerciser. It improves efficiency/productivity, saves the cost of man-hours when manual valve exercising was 

necessary, and improves safety/health by using mechanical rather than manual means to exercise valves. 

Pre-Improvement Process Description: Provide a brief description of the pre-existing condition or process. 

Photos may supplement the description (before and after photos are preferred). The description should 

state what problem(s) existed with the pre-existing condition or process.

Process Improvement: A brief description of the improvement, when it was initiated, and how the 

improvement supported the type of improvement(s) identified previously. Also, if an improvement tool was 

utilized to address the situation, the tool or catalyst should be identified; i.e., employee suggestion, 

brainstorming session, report trends, six sigma project, storyboard, value stream mapping, process mapping, 

Corrective Action Request (CAR) or accident investigation with root cause identification, 5S+S project (Sort, 

Set in Order, Shine, Standardize, Sustain, + Safety). (5S+S projects “clean up” and organize the workplace; 

they are often the starting point for other improvements. A typical 5S+S project would significantly reduce 

the square footage of space needed for operations. It also would result in the organization of tools and 

materials into labeled and color-coded storage locations as well as “kits” that contain just what is needed to 

perform a task. Increased orderliness also improves workplace safety.) 

Process Improvement Impact (cost savings, cost avoidance): Some costs savings or cost avoidance benefits 

can be calculated on a daily, weekly, or monthly basis, and some cost saving/avoidance benefits may be one 

time occurrences. The cost benefits whether figured on a daily, weekly, monthly, and/or as a onetime 

occurrence will be identified as FY cost benefits in the space provided. 
DRAFT: Resource Guide to Effective Utility Management and Lean | 95

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United States Environmental Protection Agency

www.epa.gov

October 2012

EPA-100-K-12-008