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Primer on Lean Six Sigma

U.S. Nuclear Regulatory Commission

Contact/Author

Latif Hamdan, Business Process Improvement Specialist 

Communications and Performance Improvement

Office of Executive Director for Operations 

(301) 415-6639

Latif.Hamdan@nrc.gov

Contact/Business Process Improvement Program 

John Harrison, Program Manager, Business Process Improvement 

Communications and Performance Improvement

Office of Executive Director for Operations 

 (301) 415-0151

John.Harrison@nrc.gov

Contact/ Communications and Performance Improvement

Mindy Landau, Deputy Assistant for Operations

Communications and Performance Improvement

Office of Executive Director for Operations 

(301) 415-8703

Mindy.Landau@nrc.gov
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Contents

Part 1: Lean Six Sigma Overview..............................................................5

Origins of Lean Six Sigma........................................................................7

Approach and Methodology..................................................................11

Lean Six Sigma versus Traditional Approach........................................14

Attributes and Benefits..........................................................................16

Limitations and Difficulties....................................................................19

Part 2: General Practice Guide for Lean Six Sigma...............................23

2A—Program Deployment Guide..........................................................23

Organizational Orientation...................................................................23

Lean Six Sigma Training.........................................................................23

Management Support............................................................................24

Demonstrating Benefits.........................................................................24

Planning and Implementation...............................................................25

2B—Project Execution Guide.................................................................27

Project Selection.....................................................................................27

Project Execution....................................................................................29

Part 3: Lean Six Sigma Infrastructure and Internal 

Resources at the U.S. Nuclear Regulatory Commission........................41

Potential Applications and Benefits at the NRC..................................41

Infrastructure and Internal Resources...................................................43

Staff Development.................................................................................44

Sample Lean Six Sigma Projects.............................................................45

References and Online Resources..........................................................47
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Primer on Lean Six Sigma

U.S. Nuclear Regulatory Commission

In 2007, the U.S. Nuclear Regulatory Commission (NRC) launched 

an initiative to develop Lean Six Sigma capability at the NRC. The 

agency deployed a Lean Six Sigma program to improve the quality 

and timeliness of products and services, increase efficiency, and 

improve operational effectiveness. 

This primer is part of an effort to communicate Lean Six Sigma 

knowledge throughout the NRC. It provides readers with basic 

information about Lean Six Sigma and the Lean Six Sigma program 

activities at the agency. The primer is organized into the following 

three parts:

Part 1 presents an overview of Lean Six Sigma, including its benefits 

and implementation difficulties. 

Part 2 provides a general practice guide for Lean Six Sigma.

Part 3 describes the Lean Six Sigma infrastructure, internal resources, 

and potential applications at the NRC.

Part 1: Lean Six Sigma Overview

Lean Six Sigma is a proven business model centered on process 

improvement. It is used to improve performance and increase 

effectiveness and has been successfully applied to improve 

performance in both the private sector and the Government.

All organizations want to run effective businesses that improve 

the quality and timeliness of their products and services, increase 

efficiency, and reduce cost. Lean Six Sigma is implemented specifically 

to meet all of these goals. Private businesses use Lean Six Sigma 

to stay competitive and improve the bottom line—to maximize 

profits and return on shareholder investment. It helps businesses 

accomplish this goal both by increasing sales, revenues, market 

share, and growth rates and by increasing efficiency and reducing 

cost—all at the same time. Many success stories recount the benefits 

private companies have realized from Lean Six Sigma applications. 

As an example, Toyota Motor Company has reportedly been able to 

achieve the following results by applying a production system rooted 

in Lean Six Sigma (Arthur, 2007):
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•	 The annual profits by Toyota in 2003 exceeded the profits of 

General Motors, Ford, and Chrysler combined.

•	 Toyota’s market capitalization in 2006 was $181 billion 

compared to General Motors’s $15 billion and Ford’s $12 

billion.

Other examples of private companies that have benefited from Lean 

Six Sigma applications include Motorola, General Electric, Allied 

Signal, IBM, and Texas Instruments (Arthur, 2007; Brussee, 2006; Brue, 

2002). 

Government agencies can use Lean Six Sigma to improve 

performance, deliver high quality services, increase efficiency, meet 

strategic and operational goals, and increase stakeholder satisfaction 

inside and outside the Government. A publication by Maleyeff 

(2007) highlights the need and cites examples of successful Lean 

Six Sigma projects and programs that have been completed at the 

Federal, State, and local government levels. Cited examples include 

activities by the U.S. Department of Defense (Army, Navy, Air Force, 

and Office of the Secretary of Defense); National Nuclear Security 

Administration in the Department of Energy; Washington State 

Department of Licensing; Florida Department of Revenue; Lane 

County, OR; the city of Hartford, CT; and the city of Fort Wayne, IN. 

Graham (2008) discusses and provides excellent examples of how 

Lean Six Sigma was used to turn city government in Fort Wayne, IN 

into a customer-driven and efficient enterprise. 

Lean Six Sigma organizations achieve their goals through the 

following strategies:

•	 following a disciplined results-driven approach that relies on 

data and measurements to improve processes and business 

effectiveness

•	 defining quality by what the customer wants and is willing to 

pay for

•	 setting an extremely high quality standard that aims at 

eliminating virtually all errors, defects, and variation and 

achieving a near-perfect production process
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•	 improving efficiency by increasing process speed and 

eliminating delays and other time traps

•	 eliminating waste and reducing production cost 

•	 promoting teamwork and building effective working and 

business relationships between the senior management, 

workforce, suppliers, and customers

•	 instituting and supporting a policy for continuous process 

improvement and maintaining the flexibility to implement 

improvements in response to evolving conditions and 

opportunities inside and outside the business

The decision to apply Lean Six Sigma is strictly a business decision. 

In both the private and public sectors, Lean Six Sigma projects and 

programs are expected to pay for themselves. If the projected 

long-term benefits from a Lean Six Sigma project do not exceed 

the anticipated cost, the project will not be approved. In general, 

when properly applied, Lean Six Sigma can result in high returns 

on investment because the benefits from process improvement are 

usually repetitive and continue to accrue over time. In addition, 

Lean Six Sigma can also effect important less tangible and intangible 

benefits. Examples include improved communication at all levels 

in the organizational hierarchy, increased employee morale and 

job satisfaction, energized and empowered workforce, improved 

productivity, and improved overall work and business environment.

Origins of Lean Six Sigma

Lean Six Sigma integrates two proven process improvement 

methodologies: Lean and Six Sigma. Both methodologies share a 

common commitment to improving performance and maximizing 

results and outcomes; they focus on the process and not on 

personnel; they aim at making products that fully meet or exceed 

customer needs and expectations; and they rely on quantitative 

data and measurements to make informed and objective decisions. 

However, the two methodologies have some different, albeit 

complementary, emphases. 

Modern concepts of Lean are rooted in a process improvement 

methodology developed by W. Edward Deming in the middle of the 
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20th century (Deming, 1952; Deming, 1986; see also The W. Edwards 

Deming Institute at http://deming.org/). Deming determined that 

85 percent or more of production problems result from process 

deficiencies and that workers are responsible for only 15 percent (or 

less) of business problems. Deming argued that, rather than blaming 

and relying on workers to improve operational and organizational 

effectiveness, organizations ought to focus on improving the 

processes instead. These concepts, adopted by Toyota Motor 

Company, form the basis for the famed and highly efficient Toyota 

Production System (Womack, et al., 1991). 

Lean emphasizes the importance of defining and fully satisfying 

customer needs, improving process efficiency, and reducing cost. 

Lean achieves these goals and improves business effectiveness 

through the following: 

•	 defining customer needs and producing products that fully 

meet or exceed customer specifications and expectations 

•	 reducing process cycle time by increasing process speed and 

flexibility, eliminating work overload, unnecessary steps, 

delays, and other time traps that can slow the process 

•	 eliminating or vastly reducing waste that results 

from variation, errors, and defects, large inventory, 

overproduction, and other unnecessary activities

•	 maintaining flexibility to continue process improvement in 

response to evolving opportunities and/or changing internal 

and/or external conditions 

Motorola developed and successfully implemented Six Sigma in 

the 1980s. The methodology aims at building quality into the start 

of every process, thereby eliminating the need for rework to fix 

variation, errors, and defects. 

Six Sigma is rooted in the premise that traditional operations result 

in costly variation, errors, and defects and that significant savings 

and other benefits can be realized by eliminating or vastly reducing 

them. Six Sigma aims at perfecting the production process so that 

the product (and/or service) is virtually free of variation, errors, and 

defects through the following actions:
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•	 setting an extremely high quality standard that aims at 

eliminating virtually all errors, defects, and variation and 

achieving a near-perfect production process

•	 providing the concepts, methods, tools, and guidance for 

developing Lean Six Sigma infrastructure, improving the 

production process, and achieving and sustaining high 

performance goals

Six Sigma raised the benchmark for acceptable defects from the 

number of defects per 100, or per 1,000, to the number of defects 

per 1 million.

In Six Sigma, sigma is a quality level that characterizes process 

variation and the number of defects or errors. A low sigma process 

results in a large number of defects and large variation. A high sigma 

process results in a small number of defects and small variation. The 

following table provides the quantitative relationship between the 

quality level and the number of defects per 1 million opportunities 

(dpmo): 

•	 1-sigma level: 691,400 dpmo

•	 2-sigma level: 308,700 dpmo

•	 3-sigma level: 66,810 dpmo

•	 4-sigma level: 6,210 dpmo

•	 5-sigma level: 233 dpmo 

•	 6-sigma level: 3.4 dpmo

Traditional non-Six Sigma operations run at about a 3-sigma level, 

while Six Sigma organizations adopt the 6-sigma level. The number 

of defects differs significantly between the two levels. Traditional 

organizations are satisfied with 66,810 dpmo; Six Sigma companies 

aim at having no more than 3.4 dpmo.

The 6-sigma level is a goal that may not be attained in practice. 

This is because Lean Six Sigma projects are approved only if they 

are economical and cost effective (Brussee, 2006), and achieving a 

6-sigma level may not be cost effective on some projects. Still, by 

seeking to reach the 6-sigma level, these companies operate at a 

higher level than their non-Lean Six Sigma competitors and achieve 

far better results and outcomes. Fewer defects and errors lead to 

important cost reductions and corresponding increases in earnings 

and profits. Even though the 6-sigma level may not be within reach, 

Lean Six Sigma can still go a long way in helping companies attain 
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their business goals and serve the interests of their shareholders. 

Pizdeck (1999) notes that the need for performance at a high 

6-sigma level is not limited to the manufacturing processes. He cites 

the following examples of failures that can be expected to take place 

in nonmanufacturing businesses operating at a low 3-sigma level in 

today’s society:

•	 Virtually no modern computer would function. 

•	 10,800,000 healthcare claims would be mishandled each year. 

•	 18,900 U.S. Savings Bonds would be lost each month. 

•	 54,000 checks would be lost each night by a single large 

bank. 

•	 4,050 invoices would be sent out incorrectly each month by a 

modest-sized telecommunications company. 

•	 540,000 erroneous call details would be recorded each day 

from a regional telecommunications company. 

•	 270 million erroneous credit card transactions would be 

recorded each year in the United States. 

Brue (2002) makes a similar point. Noting that the 6-sigma level of 

no more than 3.4 dpmo corresponds to a highly effective process 

and results in a nondefective output rate of 99.9997 percent, he 

asserts that such a high performance level is needed in the modern 

world. He points out that accepting a lower quality level, such 

as a 99-percent nondefective rate, would result in the following 

undesirable outcomes: 

•	 The postal service would lose 20,000 pieces of mail every 

hour.

•	 Drinking water would be unsafe for almost 15 minutes of 

every day.

•	 5,000 surgical operations would go wrong in some way every 

week.

•	 Electricity would be unavailable for almost 7 hours of every 

month.

Brue (2002) also provides an insightful example from the package-
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handling capability of the airlines. He indicates that many airlines 

are operating at a 3-sigma level, leading to about 66,000 mishandled 

bags (or defective services) for every 1 million luggage transactions. 

This translates to about a 94-percent probability that travelers will 

get their luggage without incident. He argues that operating at the 

3-sigma level represents a large cost for the airlines, both in terms of 

handling misplaced luggage and dealing with unhappy customers. 

If the airlines were to achieve a 6-sigma level, the number of service 

defects would be cut to a very manageable 3.4 misplaced bags per 

1 million luggage transactions.

Approach and Methodology

Lean Six Sigma is commonly used to improve existing processes. 

However, in some cases, it can also be used for process design. This is 

known as “Design for Lean Six Sigma,” and it is used when there is a 

breakdown in an existing process, or when designing a new process 

that can best meet business goals. The discussion in this primer is 

limited to the use of Lean Six Sigma to improve existing processes.

Process improvement in Lean Six Sigma is accomplished in practice 

by executing Lean Six Sigma projects. Team launch is the first formal 

step in the execution of any Lean Six Sigma project.

Lean Six Sigma projects have sponsors and are executed by project 

teams following a method known as “DMAIC.” This is an acronym for 

five systematic steps or phases: define, measure, analyze, improve, 

and control. At the end of each phase, the project team conducts a 

“gate review” to brief the project sponsor about the team findings 

and recommendations and to solicit the project sponsor’s feedback. 

The gate review is an important feature of Lean Six Sigma. It affords 

the project sponsor the opportunity to instruct the project team 

to proceed with the project as may be recommended by the team, 

proceed with modification, or stop the project. 

In some cases, a discovery phase may also be implemented upfront 

to collect information about the process, customer and stakeholder 

needs, and business goals. This information is used to prepare a 

preliminary project charter. 

In a nutshell, the DMAIC method follows five systematic steps 

or phases that aim at collecting information about the process, 

customer and stakeholder needs, and business goals; defining the 
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current process including problems, opportunities, and critical 

customer and stakeholder requirements; conducting measurements 

and establishing performance metrics, baseline conditions, and 

performance goals; analyzing problems and identifying their root 

causes; developing, demonstrating, and implementing a solution; 

and establishing monitoring and control measures to sustain the 

improvements long term. The following is a brief discussion of the 

five phases of the DMAIC method.

(1) Define Phase. The purpose of the define phase is to validate 

project viability including the business impacts, and to 

finalize the project charter and execution plan.

This phase involves the following main activities: 

(1) collecting information about the process, the customers, 

and the business, (2) defining process steps and developing 

a high-level process map (flow chart), (3) defining process 

suppliers, input, output, and customers, (4) identifying critical 

requirements of customers and stakeholders, (5) updating 

the project charter, (6) assessing project risk, (7) evaluating 

business impacts and validating project viability, and 

(8) presenting team findings and recommendations to the 

project sponsor in the gate review.

(2) Measure Phase. The purpose of the measure phase is to 

develop quantitative performance metrics and establish 

performance baseline and goals. 

This phase involves the following main activities: 

(1) collecting process records and establishing a process 

database, (2) deciding the need for and feasibility of 

additional measurements including data collection 

methods and measurement systems to support the 

project, (3) preparing a detailed value stream map (VSM) 

of the process showing process steps and flow including 

quantitative data (e.g., cycle times, time traps, inefficiencies, 

and waste), (4) developing performance metrics and 

establishing performance baseline and performance goals, 

(5) revising the project charter as necessary consistent with 

the measure phase findings, and (6) presenting team findings 

and recommendations to the project sponsor in the gate 

review.
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(3) Analyze Phase. The purpose of the analyze phase is to 

identify and rank process problems and their root causes.

This phase involves the following main activities: 

(1) analyzing process data and identifying process 

performance issues and problems (e.g., constraints, 

bottlenecks, and quality issues), (2) identifying and ranking 

root causes, (3) identifying critical-to-quality inputs, and 

(4) presenting team findings and recommendations to the 

project sponsor in the gate review.

(4) Improve Phase. The purpose of the improve phase is to 

recommend process improvements and implement a pilot 

to demonstrate benefits, and to prepare a plan for full-scale 

implementation of recommended improvements.

This phase involves the following main activities: 

(1) identifying and ranking of process improvement 

measures based on benefits and risks, (2) recommending 

a best solution, (3) implementing a pilot solution and 

demonstrating benefits, (4) developing a plan for a full-scale 

implementation of improvements, and (5) presenting team 

findings and recommendations to the project sponsor in the 

gate review.

(5) Control Phase. The purpose of the control phase is to 

document the results of the project, and to develop 

monitoring and control measures to be used for selfassessment and sustaining improvements long term.

This phase involves the following main activities: 

(1) documenting the project including the improved 

process, (2) developing and instituting monitoring and 

control measures to sustain improvements long term, and 

(3) handing off project documentation to the process owner.

The execution of a Lean Six Sigma project can vary depending 

on project scope and complexity. Typically, the DMAIC phases are 

executed in 3–6 months. However, under certain conditions they are 

executed in just one week. This latter approach is called a “Kaizen,” 

which means “change for the better” in Japanese and involves an 

expedited execution of the DMAIC phases, typically one phase per 

day. The Kaizen may not include implementation of a pilot or a full-
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scale solution. 

In general, the Kaizen approach is usually used in the following 

situations (George, et al., 2005):

•	 Obvious waste sources have been identified.

•	 The scope and boundaries of a problem are clearly defined 

and understood.

•	 Risk is minimal.

•	 Results are needed immediately.

•	 It is important to gain momentum and build credibility in the 

early stages of deployment.

•	 Opportunities to improve a process have been identified.

Other considerations for executing a Kaizen event may include those 

listed below:

•	 The process is not complex.

•	 The effort is directed more toward tactical operations.

•	 The effort is at low levels of the organization.

•	 The process is within one organizational unit or crosses no 

more than one organizational boundary.

•	 The effort is directed more toward internal customers and 

stakeholders.

•	 The results are needed immediately.

This primer focuses on the traditional DMAIC process. Additional 

information about the Kaizen approach is available in many of the 

references and on the Lean Six Sigma page on the NRC internal Web 

site (http://nrcweb:8600/oedo/LEAN SIX SIGMAP/index.html).

Finally, Lean Six Sigma uses quantitative analysis and analytical and 

graphic tools. Part 2 briefly discusses some of the more commonly 

used Lean Six Sigma tools. A detailed discussion of Lean Six Sigma 

tools is beyond the scope of this primer, but this information 

is readily available from many sources, including some of the 

references and bibliography in this primer.

Lean Six Sigma versus Traditional Approach

Lean Six Sigma is not complicated or difficult, but it differs from the 

traditional business approach such as the mass production system in 

manufacturing in some important respects. Lean Six Sigma follows 
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different concepts, philosophy, and mindset and uses a different 

approach and methods. These are some of the differences as they 

apply to private businesses

•	 Traditional businesses design their products and make 

decisions based on their expertise; Lean Six Sigma 

organizations design their products to their customers’ 

specifications, and data and results drive their decisions.

•	 Traditional businesses spend an inordinate amount of time 

on rework and fixing defective products and services; Lean 

Six Sigma organizations consider defects and rework as 

waste and strive to identify and eliminate the root causes 

of defects. The threshold for acceptable defects for Lean Six 

Sigma organizations is significantly lower than in traditional 

businesses, which means less time spent on rework and fixing 

defects.

•	 Traditional businesses learn to accept their performance gaps 

and rely on temporary fixes; Lean Six Sigma organizations 

think long term and institute long-term solutions.

•	 Traditional businesses rely on large inventories to satisfy 

projected demand; Lean Six Sigma organizations consider 

inventory to be unnecessary and rely on flexibility and speed 

to make and deliver products on time and thereby eliminate 

the inventory cost.

•	 Traditional companies focus on the outside business and 

the need to increase sales, revenues, and market share; 

Lean Six Sigma companies focus on two equally important 

businesses—the outside business and the internal operations, 

particularly in terms of eliminating waste, improving 

efficiency, and reducing cost.

•	 Traditional businesses are likely to blame employees 

and workers for performance problems; Lean Six Sigma 

organizations believe the process is responsible for the great 

majority of problems. 

The following example illustrates some of these differences relating 

to process improvement. Consider the performance gaps between 

expectations and actual performance, which is a common problem 

for organizations and businesses. Performance gaps result from 
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variations in performance over time, and they surface when products 

do not meet specifications or standards (quality gaps), or when tasks 

cannot be completed on time (timeliness gaps), or both. 

Traditional non-Lean Six Sigma organizations handle performance 

gaps by applying temporary measures to fix problems, usually 

without giving much attention to making any significant changes 

in the underlying process. Performance gaps related to quality are 

mitigated by applying quality control measures that involve rework 

and fixing of errors. Performance gaps related to timeliness are 

resolved by asking employees to step up, work harder, or work 

overtime. Additional resources are sometimes allocated to ensure 

that deadlines are met. Management in these organizations relies 

on temporary fixes to close performance gaps without taking the 

time or effort needed to make fundamental changes to permanently 

improve process capability. The end result is that non-Lean Six Sigma 

organizations are unable to control product variation over time, 

they accept the process performance gaps, and they continue to run 

incapable processes and inefficient operations.

Lean Six Sigma organizations rarely resort to temporary measures to 

improve performance, and they do not address all performance gaps 

in the same way. They routinely monitor their processes and, when 

a performance gap is discovered, they proceed to investigate it and 

identify its root cause. Based on the investigation findings, they may 

decide to do nothing (e.g., if the underlying problem represents a 

normal occurrence in the process or if it is related to a special onetime cause or event that may or may not require fixing). However, 

if the performance gap results from a common cause or an inherent 

deficiency in the process, Lean Six Sigma organizations will take the 

time to implement long-lasting measures to improve overall process 

capability. They do so because they know that investment in such 

improvements will pay off many times over in the long run.

Attributes and Benefits

The following are some of the attributes and benefits that may be 

unique, at least in some respects, to Lean Six Sigma:

•	 Focus on Process

Lean Six Sigma aims at improving business operations by 

focusing on improving business processes. It is rooted in the 
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premise that organizations can eliminate 85 percent or more 

of operational problems by fixing business processes. 

•	 Customer Driven

Lean Six Sigma focuses on increasing the value to business 

customers and stakeholders and delivering products and 

services that fully meet customer specifications in terms of 

quality and timeliness. Customer input, from both external 

and internal customers and stakeholders, is vital to achieving 

good results.

•	 Results Driven 

Lean Six Sigma is driven by results. Lean Six Sigma projects 

are not approved unless they are economical and cost 

effective. To be successful, a Lean Six Sigma project must 

demonstrate a positive and measurable outcome and show 

that project benefits exceed project cost. 

•	 Measurements-Based Decisionmaking 

Lean Six Sigma is an objective approach; decisions are 

primarily based on data and measurements. Lean Six Sigma 

uses existing data and new information about the process 

(Voice of the Process), the customer (Voice of the Customer), 

and the business (Voice of the Business) to establish baseline 

conditions and goals and relies on quantitative performance 

metrics to quantify and demonstrate the results. 

•	 Value Focus

Lean Six Sigma organizations achieve efficiency by focusing 

on improving value-added activities and eliminating 

nonvalue-added work. In general, value-added activities 

are defined as activities that customers are willing to “pay 

for” and add value to the product the first time they are 

implemented. Rework is not a value-added activity in Lean 

Six Sigma. Some of the basic business requirements may also 

be considered as value-added activities. 

•	 Team Approach

Lean Six Sigma projects are not executed by individuals 
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working in isolation. They are executed by project teams, and 

every Lean Sigma project begins with a formal team launch. 

The project team is ultimately responsible for verifying 

the problem and goal statements, analyzing process steps 

and workflow and identifying root causes of problems, 

identifying solutions and evaluating improvement benefits 

and risks, and making recommendations to the process 

owner. Every member of a Lean Six Sigma project team is 

responsible, and receives credit, for project success.

•	 Flexibility

Flexibility is an important attribute of Lean Six Sigma. It 

allows businesses to make improvements in response to 

opportunities identified during operational monitoring. It 

also allows organizations to respond promptly to outside 

change and support continuous improvement. The flexibility 

in Lean Six Sigma extends to project execution as well. 

During the gate reviews, the project team recommends to 

the process owner whether the project should proceed to 

the next phase or whether it should be stopped. Thus, the 

process owner can stop the project at the end of any phase 

of the DMAIC process. 

•	 Empowerment of Employees and Workforce

Lean Six Sigma will improve employee morale and workforce 

productivity and effectiveness by encouraging workers to 

participate in the decisionmaking process as members of Lean 

Six Sigma project teams and offering them the opportunity 

to take pride in the quality and timeliness of their products 

and services.

•	 Lean Six Sigma Is a Philosophy and a Mindset

Lean Six Sigma is not merely a method or a set of tools, and 

merely learning the method and tools may well achieve very 

little. To reap outstanding results, Lean Six Sigma ought to 

be viewed as a continuous improvement process and become 

part of the business culture, philosophy, and mindset.

•	 Turnkey/Wall to Wall/Beginning to End

Lean Six Sigma is a turnkey process improvement approach. 
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It validates the need, identifies the problems and their 

root causes, identifies and implements a pilot solution and 

demonstrates benefits, and develops a plan for instituting a 

solution, including performance metrics and control measures 

to sustain the gains long term.

•	 Managing the Outside and the Inside of the Business

Lean Six Sigma addresses problems on the outside and the 

inside of the business. On the outside, it improves product 

and service quality and increases business effectiveness with 

external customers and stakeholders, which, in the case of 

private companies, results in increased sales, market share, 

revenues, and growth. On the inside, it improves process 

efficiency, which, for private companies, results in reduced 

cost. By focusing on both the outside and the inside, private 

businesses realize significant improvements in the bottom 

line in terms of profits and net return on their shareholders’ 

investments. 

Limitations and Difficulties

Companies and organizations implementing Lean Six Sigma 

initiatives for the first time usually face programmatic and other 

difficulties that they will need to understand and overcome to ensure 

success. The following are some of the more common difficulties:

•	 Demonstrating Benefits

Success of Lean Six Sigma depends entirely on results and 

outcomes. Lean Six Sigma initiatives, programs, and projects 

must demonstrate tangible benefits to the organization or 

business. Although execution of Lean Six Sigma can result 

in many intangible benefits, success depends on and is 

ultimately measured by tangible and quantitative results and 

outcomes. Realizing real and tangible benefits is essential 

for gaining acceptance and for creating the enthusiasm and 

energy to propel the program forward. 

•	 Defining a Pressing Business Need 

Lean Six Sigma initiatives, programs, and projects must 

address real and pressing business needs. Identifying 
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a pressing business need (sometimes called a “burning 

platform”) is key to realizing and demonstrating large 

benefits. 

•	 Project Selection 

Projects ought to be carefully identified, ranked, and 

selected to ensure that they are beneficial and that the 

most pressing needs receive the most effort. Doing many 

process improvement projects instead of focusing on missioncritical or high-value processes may not produce the desired 

outcome or results. Executing poorly selected projects 

without the use of discriminating project selection criteria 

can kill the program.

•	 Reliance on Data and Quantitative Analysis

Lean Six Sigma relies on objective and data-driven 

decisionmaking. Decisions about problems and solutions are 

based not on someone’s opinion, but rather on data and 

analysis. Objectivity comes at a price: data must be acquired 

or collected and then analyzed to support decisionmaking. 

•	 Upfront and Sustained Commitment and Sustained Support 

for Continuous Improvement

Lean Six Sigma requires upfront investment, preparation, 

and planning. Perhaps even more important, Lean Six Sigma 

ought to be considered as a journey not a destination. To 

reap full benefits, Lean Six Sigma requires sustained support 

for a culture and a mindset of continuous improvement.

•	 Commitment To Implementing Recommended Improvements

Success requires commitment to following through with 

and implementing recommended improvements and 

instituting monitoring and control measures to sustain the 

improvements over the long term.

•	 Planning and Managing Change

Lean Six Sigma entails change that may bring about 

uncertainty and even fear. Change generates resistance. 
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Implementation of Lean Six Sigma programs and initiatives 

will need to include a strategy and a plan to manage change 

and mitigate resistance to change in all of its forms.

•	 Understanding the Limitations

A limited general knowledge of Lean Six Sigma methodology 

and a limited appreciation of its many benefits may hamper 

Lean Six Sigma applications. In this regard, it is important 

that businesses and organizations applying Lean Six Sigma 

understand what Lean Six Sigma is and what it is not. 

⸋ Lean Six Sigma is not an external audit or inspection; it 

is an internal self-assessment by the process owner who 

solely has the authority to initiate a Lean Six Sigma process 

improvement project and implement recommended 

improvements.

⸋ Lean Six Sigma is not a panacea; it is a methodology and an 

approach for process improvement.

⸋ Formal training is necessary but not enough; Lean Six Sigma 

requires learning by doing.

⸋ Knowledge of Lean Six Sigma methods and tools is useful, 

but understanding Lean Six Sigma philosophy, mindset, and 

culture is crucial.

⸋ Too much focus on activity and application of methods and 

tools and not enough focus on the results do not bode well 

for new Lean Six Sigma deployments.

•	 Managing the Critics and Skeptics

Lean Six Sigma has its critics. Some feel that Lean Six Sigma 

is about complicated statistics, or that it may not apply to 

Government work. Others are concerned about the price tag. 

However, as previously discussed, Lean Six Sigma is about 

results and outcomes, and Lean Six Sigma activities pay for 

themselves many times over in the end. 
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Part 2: General Practice Guide for Lean Six Sigma

Properly deployed and implemented Lean Six Sigma initiatives and 

programs can result in a major payoff, including significant longterm process and business improvements. The success rate for Lean 

Six Sigma initiatives by commonly used approaches is reportedly 

50 percent (Arthur, 2007). Poorly deployed or implemented initiatives 

and programs that do not meet expectations are abandoned. 

The success or failure of Lean Six Sigma initiatives depends on 

programmatic factors, as well as project execution. The following is a 

general practice guide for both program deployment and execution 

of individual projects. The guide is based on a limited literature 

review and firsthand experience with Lean Six Sigma project 

execution at the NRC. 

2A—Program Deployment Guide

Investment in infrastructure and staff training to develop certified 

professionals are needed for successful deployment of Lean Six 

Sigma initiatives and programs. Sustained commitment and support 

for continuous process improvement by senior management is also 

important, but above all else, successful deployment of Lean Six 

Sigma ultimately depends on successful execution of individual 

projects and demonstrating the benefits of Lean Six Sigma. 

Organizational Orientation

The initial stage of Lean Six Sigma deployment necessarily involves 

organizational and staff orientation. This effort is critical for general 

knowledge and program support and for support of specific projects. 

The target audience could include senior managers, prospective 

process owners, and key program support staff, particularly those 

involved in key business processes and who may be prospective 

team members for Lean Six Sigma projects. This effort could involve 

short-term training sessions conducted by outside contractors, 

involvement in process improvement projects, and effective 

communication.

Lean Six Sigma Training

Training of Lean Six Sigma analysts includes both formal and on-thejob training (i.e., training by doing Lean Six Sigma projects). Lean Six 

Sigma analysts are certified at one or more of the following levels:
24

•	 White Belt: Attains basic knowledge in Lean Six Sigma 

•	 Green Belt: Works part time as a Lean Six Sigma professional 

or analyst on noncomplex Lean Six Sigma improvement 

projects

•	 Black Belt: Works full time as a Lean Six Sigma professional 

leading, facilitating, and coaching Lean Six Sigma project 

teams

•	 Master Black Belt: Oversees multiple Lean Six Sigma 

improvement projects 

•	 Champion: Active sponsor, advocate, and leader for a Lean 

Six Sigma program

Black belts support large projects; green belts support smaller 

projects. Green belts are also good prospects to become future black 

belts. Candidates for black belt and green belt training should be 

selected based on clearly defined criteria, including both technical 

and business skills, and their ability to advocate for agency policy 

change when necessary. 

Black belt training is incomplete without hands-on experience. 

In-house black belts involved in project execution may have to be 

supported initially by a master black belt or a highly experienced 

black belt provided by outside contractors.

Management Support

Sustained management support is a prerequisite for successful 

deployment and implementation of Lean Six Sigma initiatives and 

programs. Management support is needed for providing financial 

and other resources, identifying processes requiring improvements, 

and implementing and institutionalizing recommended 

improvements. Even more than that, management support is needed 

to make an organizational commitment to continuous process 

improvement so that the organization remains flexible and open 

to change in response to new and evolving developments inside or 

outside the organization.

Demonstrating Benefits

All Lean Six Sigma efforts will likely result in important intangible 

and indirect organizational benefits. Nevertheless, in both the public 
25

and private sectors, process improvement projects are initiated and 

executed on the expectation and subsequent demonstration that 

project benefits exceed project cost. The success of Lean Six Sigma 

initiatives and programs ultimately depends on demonstrating 

that Lean Six Sigma process improvement projects achieve tangible 

and measurable benefits that exceed the initial investment. If the 

expected benefits do not exceed the initial investment, the program 

will not be sustained.

Planning and Implementation

The concepts, methods, and tools of Lean Six Sigma are 

straightforward and are generally well understood. All Lean Six 

Sigma projects are executed following a standardized process. So 

why do some Lean Six Sigma initiatives and programs succeed while 

others fail?

Success of Lean Six Sigma ultimately depends on successful 

implementation measured by results and outcomes. Success 

requires organizational commitment and proper planning and 

implementation. This requires organizational commitment; 

understanding and appreciation of Lean Six Sigma benefits at 

the organizational, program, and project levels; proper selection 

and execution of projects; and proper planning to overcome 

implementation difficulties. 

The following is a general guide for Lean Six Sigma deployments and 

projects at the organizational, program, and project levels.

At the Organization Level

•	 Use Lean Six Sigma under the following circumstances:

⸋ You have a business challenge.

⸋ You have a specific business process that has problems.

⸋ The challenge and problems have persisted over a long time.

⸋ The solution is not known.

•	 Do not use Lean Six Sigma if:

⸋ You do not have a specific challenge.

⸋ You do not have a process to improve.

⸋ You already have a solution.
26

•	 Identify and rank pressing business needs that can benefit 

from process improvement.

•	 Emphasize results and outcomes, not activity or the number 

of projects.

•	 Emphasize proper project selection.

•	 Develop own black belts and master black belts. 

•	 Emphasize learning by doing.

•	 Anticipate and prepare for change and resistance to change.

•	 Implement recommended improvements.

•	 Recognize and reward progress.

•	 Commit to continuous process improvement.

•	 Commit necessary budget and resources.

At the Program Level

•	 Emphasize results and outcomes, not activity or the number 

of projects.

•	 Select projects carefully. 

•	 Execute projects to improve clearly defined processes.

•	 Ensure that projects have sufficient resources and are 

properly executed.

•	 Communicate well. 

•	 Encourage internal networking and advocacy.

•	 Emphasize learning by doing.

•	 Be flexible and be prepared to make adjustments when 

needed.

•	 Recognize opportunities and risks.

•	 Anticipate and prepare for change and resistance to change.

•	 Select outside contractors carefully. 

•	 Beware of skeptics and naysayers.

At the Project Level

•	 Choose the project team carefully (Lean Six Sigma may be 

easy; team work is hard.)

•	 Emphasize results and outcomes, not activity.

•	 Rely on data to verify and validate project and to support 

decisionmaking throughout the project.

•	 Evaluate the available data and determine how data 

collection and acquisition will impact the project positively or 
27

negatively.

•	 Do not confuse symptoms with root causes.

•	 Implement quick wins and demonstrate results at every 

opportunity.

•	 Secure commitment from the process owner to implement 

improvements. 

•	 Implement pilot solutions and demonstrate improvements on 

every project.

•	 Prepare plans and institute controls to sustain gains over the 

long term.

•	 Communicate results and lessons learned.

•	 Beware of excuses and naysayers.

•	 Beware of scope creep during project execution. 

2B—Project Execution Guide

Successful Lean Six Sigma applications typically involve properly 

selecting and executing projects, implementing improvements and 

demonstrating business benefits, and instituting improvements and 

sustaining gains long term. 

Project Selection

Proper selection of Lean Six Sigma projects is critical, especially 

during the initial stage of a Lean Six Sigma program. The importance 

of this activity cannot be overemphasized. Poor project selection is 

the surest path to project failure. Likewise, selecting and successfully 

executing the right project in the early stages of Lean Six Sigma 

deployment may be the most important single factor in propelling 

the program forward. 

First and foremost, Lean Six Sigma projects should be executed in 

response to real and pressing business needs, and they should be 

ranked on the basis of their estimated payoff in terms of business 

impact and benefits. However, other factors must be considered, 

such as the prospects for successful results and the process owner’s 
28

commitment to implementing improvements at the conclusion of the 

project. The following are some of the criteria that may be used in 

the selection and ranking of projects:

•	 What are the business benefits? Projects are executed only 

if it is determined that the expected business benefits will 

exceed the project cost.

•	 Is there a pressing business need for process improvement? 

Lean Six Sigma projects should not be undertaken if there is 

no real or pressing need for process improvement, because 

the project benefits will likely be small. 

•	 Is the process stable and repetitive? Organizations can expect 

large benefits from Lean Six Sigma projects involving stable 

and repetitive processes, because the benefits accrue every 

time the process is used, over a long period of time. If the 

process is not stable and repetitive, the benefits may not be 

sufficient to justify the project.

•	 What are the prospects for success? Is the project scope 

realistic? Is senior management supportive and willing 

to provide sufficient budget and resources to execute 

the project? Is there a record of process performance? If 

sufficient resources cannot be committed or if there are no 

data and the data cannot be acquired in a reasonable time, 

Lean Six Sigma projects should not be approved.

•	 Is the process owner committed to implementing 

improvements once they have been identified? If the 

improvements will not be implemented, there is no point in 

doing a Lean Six Sigma project.

•	 Do we know the solution? Do we know of specific actions 

that will improve the process without Lean Six Sigma? Lean 

Six Sigma projects ought not to be approved if solutions to 

improve the process are already known.
29

Project Execution

Preliminary Steps. Once a Lean Six Sigma project is approved, the 

project is assigned a Lean Six Sigma analyst (usually a black belt, 

although a green belt may be assigned to smaller projects). The 

project sponsor, who is usually the process owner, and the black belt 

collaborate on the following preliminary activities before the formal 

team launch:

•	 Define the process, including the problem statement, goal 

statement, and business impact.

•	 Determine the project scope and a tentative execution 

schedule.

•	 Estimate project costs and benefits and verify that the 

estimated benefits exceed the estimated costs.

•	 Select members of the project team. 

•	 Prepare a draft project charter (a draft project plan).

•	 Schedule and conduct a team launch to formally start the 

project.

As previously stated, a discovery phase may be implemented upfront 

to collect information about the process, customer and stakeholders 

needs, and business goals. This information is used to prepare a 

preliminary project charter. 

Project Charter Development. Before the team launch, the project 

black belt collaborates with the process sponsor to prepare a draft 

project charter. The project team can revise the project charter 

during the project execution based on process information. All 

revisions are subject to the sponsor’s approval. The project charter 

will address the following standard items:

•	 Problem Statement: This is also called the “opportunity 

statement.” The problem statement identifies the pressing 

business need that requires a solution. This statement must 

be quantitative. If the required data are not readily available, 

the team can use placeholders until the data are acquired 

during the define phase from existing records, or collected 
30

during the measure phase from direct measurements. The 

importance of the problem statement cannot be overstated; 

a problem that is well defined is more than half solved.

•	 Goal Statement: The goal statement is the opposite of the 

problem statement. It provides a quantitative performance 

goal. If data are not readily available, the team can use 

placeholders until the data are acquired during the define 

phase from existing records, or collected during the measure 

phase from direct measurements.

•	 Business Impact: The business impact defines the expected 

impacts on the business once the project goals are achieved. 

This too is an important part of the project charter. To 

be approved, the business impact from a Lean Six Sigma 

project has to be tangible and measurable, and the expected 

benefits must be shown to exceed the expected project cost. 

•	 Project Scope: The project charter must clearly define inscope and out-of-scope items, and it must also guard against 

“scope creep” during project execution.

•	 Project Schedule: The project charter should include a project 

schedule with the expected start and completion dates, 

and interim dates for completing each phase of the DMAIC 

process. 

•	 Project Team: The project charter should include a list of the 

project team members. The project charter will typically list 

the names of the project sponsor or process owner, Lean 

Six Sigma champion, Lean Six Sigma analyst, and individual 

members of the team and their roles and responsibilities.
31

Selecting Members of the Project Team. The project team is typically 

limited to no more than seven or eight members. Most of the project 

team members are selected, in part, because of their knowledge of 

the underlying process. Other team members include product users, a 

Lean Six Sigma analyst, and a professional with project management 

expertise and skills. Product users include not only the final user, but 

also other people who come in touch with the product. 

Lean Six Sigma is not difficult, but team work is. Apart from the 

specific expertise individuals bring to the project, selection of team 

members should consider the following factors:

•	 Availability: Team members should be available to participate 

fully in project meetings and deliver on project assignments 

for the entire duration of the project. 

•	 Teamwork Experience: Team members should ideally have 

previous teamwork experience.

•	 Motivation: Team members should have a desire to fix the 

process and help the business.

•	 Objectivity and Independence: To the extent possible, team 

members should be independent and objective free thinkers 

so that analyses and recommendations are based on relevant 

data and information.

Every project must have a Lean Six Sigma black belt, although green 

belts are sometimes used on small projects. Larger or more complex 

projects may also benefit from a master black belt. 

The process owner or project sponsor assigns a team leader to every 

team. The team leader has ultimate responsibility and accountability 

for the execution and timely completion of the project and 

communicating the results to the process owner. The team leader is 

typically a Lean Six Sigma black belt or green belt, depending on the 

project size. In some cases, the team leaders are not Lean Six Sigma 

analysts, and they are selected for their team leadership and project 

management skills or other qualifications.

Team Launch. As previously stated, project teams execute the Lean 

Six Sigma projects, and the team launch is the first formal step in the 

execution of any Lean Six Sigma project. 
32

The team launch is used to present the project to the team members, 

to introduce the team members to each other and to the project 

sponsor, to answer team member questions, and to develop a project 

plan and schedule.

The project team has complete responsibility for the project. It 

follows the DMAIC process to implement all of the project activities 

from beginning to end. These include validating the project 

charter, particularly including the problem and goal statement 

and the business impact; establishing performance metrics and 

developing quantitative baseline and performance goals; analyzing 

problems and identifying their root causes; selecting a solution and 

implementing a pilot to demonstrate benefits; and finding a fullscale solution, including an implementation plan and performance 

metrics to monitor and control the process and sustain improvements 

long term. 

Project Management. Like any other project, a Lean Six Sigma project 

will need to be managed to ensure that the project milestones, 

goals, and products are completed on time and within budget. 

Additional project management may also include, for example, the 

following activities: 

•	 preparation of project meeting including schedules and 

logistics

•	 preparation of meeting summaries including agreements 

reached and takeaway items

•	 follow-up on action items

•	 preparation of a project communication plan

•	 effective and timely communication of project progress and 

status to concerned stakeholders 

•	 evaluating risk including the risk of executing a project 

or a particular activity, as well as the risk of implementing 

alternative recommendations

DMAIC Process Guide. Table 1 provides a general guide for 

implementing the standardized DMAIC process, including a discovery 

or preparatory phase that may be implemented before the team 

launch. 
33

Table 1 General Guide for the DMAIC Process

Phase Purpose Main Activities Main Deliverables Typical Duration

(Weeks) Discovery

Phase 

(optional)

To reach 

understanding 

with the process 

owner and to 

prepare a draft 

project charter

– Discuss project 

with process 

owner, including 

problem and 

expectations

– Identify members 

of the project 

team

– Prepare a 

draft project 

charter, including 

problem and goal 

statements, business 

impact, scope, 

timeline, and project 

team

– Draft project 

charter 

– List of team 

members

2–4

Define 

Phase

To validate 

project viability 

including the 

business impacts, 

verify the 

project charter, 

define and map 

process, and 

identify critical 

customer and 

stakeholder 

requirements

– Collect 

information about 

the process, the 

customers and 

stakeholders, and 

the business

– Define process 

steps and develop 

a high-level 

process map (flow 

chart)

– Define suppliers, 

input, output, and 

customers

– Identify critical 

customer and 

stakeholder 

requirements

– Evaluate business 

impacts and 

validate project 

viability

– Review and 

revise the project 

charter based on 

the define phase 

findings

– Assess project risk

– Develop a project 

plan

– Present team 

findings and 

recommendations 

to the project 

sponsor in the 

gate review

– Validated project 

charter

– Critical customer 

and stakeholder 

requirements

– “SIPOC” chart; this 

chart defines the 

process and process 

related elements:

S—Suppliers

I—Input

P—Process

O—Output

C—Customers 

– High-level process 

map

– “RACI” chart; 

this chart defines 

the roles and 

responsibilities of 

project personnel 

with regard to 

specific tasks:

R—Responsible

A—Accountable

C—Provides 

consultation

I—Receives 

information

– Project 

management plan 

– Gate review—Team 

recommendations 

for path forward 

3–4
34

Table 1 General Guide for the DMAIC Process

(continued)

Phase Purpose Main Activities Main Deliverables Typical Duration

(Weeks)

Measure 

Phase

To develop a 

quantitative 

database and 

quantitative 

performance 

metrics, and 

establish 

performance 

baseline and 

performance 

goals

– Collect process records 

and establish a process 

database

– Decide on the need 

for additional 

measurements 

including 

measurement systems 

and data collection 

methods

– Prepare a VSM of 

the process; this is a 

detailed process map 

showing process steps 

and flow including 

quantitative data (e.g., 

cycle times, time traps, 

inefficiencies, and 

waste) 

– Develop performance 

metrics and establish 

performance baseline 

and performance goals 

– Update the project 

charter as necessary 

– Present team findings 

and recommendations 

to the project sponsor 

in the gate review

– A VSM of the 

process

– Quantitative 

validation of 

problem, goal, and 

business impact 

statements

– Measurement 

system, including 

operational 

definitions and 

performance 

metrics

– Baseline process 

capability and 

performance 

– Updated project 

charter

– Possible quick wins

– Gate review—Team 

recommendations 

for path forward

4–6

Analyze

Phase

To identify and 

rank process 

problems and 

their root 

causes

– Analyze process 

data and identify 

process issues and 

performance problems

– Identify critical-toquality inputs

– Identify, screen, and 

rank root causes

– Present team findings 

and recommendations 

to the project sponsor 

in the gate review

– Root cause(s) of 

process issues 

and performance 

problems

– Critical-to-quality 

inputs

– Possible quick wins

– Gate review—Team 

recommendations 

for path forward

3–4
35

Table 1 General Guide for the DMAIC Process

(continued)

Phase Purpose Main Activities Main Deliverables Typical Duration

(Weeks) Improve

Phase

To identify 

process 

improvement 

measures, 

implement 

a pilot to 

demonstrate 

improvements, 

and prepare and 

execute a plan 

for full-scale 

implementation 

of the improved 

process

.

– Identify, screen, 

and rank process 

improvement 

measures based on 

benefits and risks 

– Select and recommend 

a best solution

– Implement a pilot 

and demonstrate 

improvements

– Develop a plan 

for a full-scale 

implementation of 

the solution 

– Present team 

findings and 

recommendations to 

the project sponsor in 

the gate review

– Tested solution to 

the problem

– Plan for full-scale 

implementation of 

the solution

– Before and after 

performance 

metrics 

– Gate review—Team 

recommendations 

for path forward

2–3

Control

Phase

To document the 

project, including 

demonstrated 

improvements, 

and to develop 

monitoring and 

control measures 

to sustain 

improvements 

long term

– Document the 

project, including 

recommended 

improvements 

– Develop monitoring 

and control 

measures to sustain 

improvements long 

term

– Hand off the project 

documentation to the 

process owner

– New process 

map and 

documentation 

of improved 

process and an 

implementation 

plan for long-term 

solution

– Process control 

plan, including 

process 

monitoring and 

control measures

– Project 

documentation 

2–3
36
37

Guide to Lean Six Sigma Tools. A detailed presentation of Lean Six 

Sigma tools is beyond the scope of this report, but the reader can 

learn about these tools in many of the listed references (e.g., Juran & 

Godfrey, 2000), as well as the internal NRC Lean Six Sigma Web page: 

http://nrcweb:8600/oedo/LEAN SIX SIGMAP/index.html.

Table 2 provides a list of some of the more commonly used Lean Six 

Sigma tools and their uses. 
38
39

Table 2 Selected Lean Six Sigma Tools

Tool Description, Function and Uses DMAIC Phase

Project charter The project charter is a one-page project 

summary that covers:

Business Impact

Opportunity/Problem Statement

Goal Statement

Project Scope

Project Plan

Project Personnel Including Roles and 

Responsibilities

Discovery, Define, 

Measure

SIPOC chart This chart defines the process and process 

related elements defined in Table 1

Define

Process map A process flow chart showing process steps 

and flow

Define, Measure

Value stream map A detailed process map showing process 

steps and flow including quantitative 

process data (e.g., cycle times, time traps, 

inefficiencies, and waste)

Measure

Fishbone diagram A cause-and-effect diagram used to uncover 

the root causes of problems

Analyze, Improve

5 whys

A method used with the cause-and-effect 

diagram and the Pareto chart to critically 

examine the causes of problems and 

identify the root causes

Analyze

Pareto chart A bar chart used to rank problems, causes, 

inputs, and solutions in terms of their effects 

and impact on process output and results

Define, Analyze, 

Improve

Cause-and-effect 

matrix

Not to be confused with the cause-andeffect diagram, this is a matrix used to 

correlate process inputs and outputs and 

identify and rank input variables that 

significantly impact process output (critical 

to quality requirements and inputs)

Define

Kano diagram A data collection tool used to understand 

what product or service features are valued 

by customers and develop critical-to-quality 

requirements

Define, Measure

Gage R&R 

(Repeatability and 

Reproducibility)

A measurement system analysis tool 

used to determine the repeatability 

and reproducibility of measurements 

and measurement system reliability to 

consistently produce accurate measurements

Measure
40

Table 2 Selected Lean Six Sigma Tools

(continued)

Tool Description, Function and Uses DMAIC Phase

Statistical tools:

Histograms, box plots, 

mean, median, mode, range, 

variance, and standard 

deviation

Time series, run charts, 

control charts

Scatter plots, correlation, 

and regression analysis 

Hypothesis tests (e.g., t-test, 

analysis of variance)

Statistical tools used to characterize 

and analyze process data sets

Statistical tools used to display and 

analyze process data and illustrate 

how the process is changing over 

time

Statistical tools used to determine 

whether relationships exist between 

process input and output variables 

and to develop quantitative 

equations for relationships

Statistical tests used to make 

judgments about process samples 

and their underlying populations to 

ultimately determine whether there 

are statistically significant changes 

in the process at different times (or 

places) 

Measure, Analyze
41

Part 3: Lean Six Sigma Infrastructure and Internal Resources at the 

U.S. Nuclear Regulatory Commission

The NRC launched a Lean Six Sigma initiative in 2007. The agency 

wanted to develop a Lean Six Sigma capability to improve quality, 

timeliness, and efficiency and increase the overall effectiveness of its 

operations. Much progress has been made. The agency established a 

Lean Six Sigma program and created a Lean Six Sigma infrastructure, 

provided Lean Six Sigma training to staff members and managers, 

and executed several Lean Six Sigma projects. 

Potential Applications and Benefits at the NRC

Lean Six Sigma applications can increase the NRC’s “business” 

effectiveness by improving individual processes throughout the 

agency. It will also support the agency’s operational planning, as 

well as strategic objectives (effectiveness, operational excellence, 

and openness) and strategic goals (safety and security) as provided in 

the current (fiscal year 2008–2013) strategic plan. In addition, Lean 

Six Sigma will result in some important intangible benefits to the 

NRC. Examples include improved communication and transparency, 

increased staff empowerment at all levels, and increased stakeholder 

satisfaction and confidence.

Process Improvement. Lean Six Sigma could potentially improve 

hundreds of NRC processes. Examples include licensing reviews, 

rulemaking activities, contract review and award, document 

development and concurrence, budget development, resource 

allocation, and operational planning. Specific benefits from 

individual process improvement projects include the following:

•	 improved product and service quality by reducing variability, 

defects, and errors

•	 improved timeliness and efficiency by eliminating delays, 

waiting times, and unnecessary activities and tasks including 

rework

•	 freed full-time equivalents and increased productivity by 

improving efficiency

•	 reduced cost by eliminating or significantly reducing waste 
42

•	 reduced gap between expectations and actual performance

Strategic Plan Support. Successful execution of a Lean Six Sigma 

program and the improvement of different NRC processes will lend 

significant support to the implementation of the agency’s strategic 

planning, including the current strategic plan. 

The current NRC strategic plan for fiscal years 2008–2013 can be 

found on the agency’s Web site at http://www.nrc.gov/readingrm/doc-collections/nuregs/staff/sr1614/v4/sr1614v4.pdf. This plan 

describes the NRC’s mission, values, and strategic safety and security 

goals, including the strategic outcomes, issues, and resources needed 

to support these goals. The strategic plan also describes three 

organizational excellence objectives (openness, effectiveness, and 

operational excellence) that will also support the strategic goals 

and attributes the safe use of radioactive materials to the agency’s 

adherence to the “principles of good regulations,” which include 

efficiency, independence, clarity, and reliability. The strategic plan 

indicates efficiency can be improved without compromising safety. 

Finally, the strategic plan states that the effectiveness concepts apply 

to all levels of the agency and identifies a number of effectiveness 

strategies, including the use of state-of-the-art techniques.

Lean Six Sigma can support all three organizational excellence 

objectives in the NRC strategic plan and thereby can support the 

agency’s strategic safety and security goals. The use of Lean Six Sigma 

can improve the accuracy and timeliness of regulatory products and 

licensing actions, reduce the variability in the agency’s products 

and actions, increase process efficiencies, stabilize and improve the 

reliability of agency processes, improve process flexibility to handle 

change, and increase confidence in the regulatory process. 

Support for Operational Planning. Lean Six Sigma can also support 

improved business operations and process monitoring and 

control activities, such as data collection, project management, 

staff development and training, and staff empowerment. 

Examples include improved budgeting and resource allocation 

and disbursement processes and operational plans, and reducing 

performance gaps.

Increased Stakeholder Satisfaction. Lean Six Sigma can improve the 

agency’s effectiveness with its stakeholders both inside the agency 

(Commission, senior management, and NRC staff) and outside 
43

the agency (Congress, the public, licensees, and others). Increased 

satisfaction is a direct result of improved product and service quality 

and timeliness, increased efficiency, and reduced cost.

Other Benefits. Successful implementation of Lean Six Sigma can 

have other benefits, including improved communication and 

coordination throughout the agency, increased staff empowerment, 

improved employee morale and self-esteem, improved transparency, 

and a greater ability to respond to outside change.

Infrastructure and Internal Resources

The Lean Six Sigma program at the NRC resides in the Office of 

the Executive Director for Operations and consists of a Lean Six 

Sigma Program Manager, a core group of black belts, and rotating 

black belt trainees. The program is responsible for developing and 

maintaining a Lean Six Sigma capability, supporting internal Lean 

Six Sigma training, supporting Lean Six Sigma project execution, and 

supporting other Lean Six Sigma planning and operation activities 

throughout the agency. 

The Lean Six Sigma program maintains an internal NRC Web page, 

which can be accessed at http://nrcweb:8600/oedo/lean six sigmap/

index.html. This Web page provides information about the Lean 

Six Sigma program, including program capability, Lean Six Sigma 

projects, forms for new project submittals, criteria for project 

selection, training opportunities, and some of the commonly used 

Lean Six Sigma tools. 

The Lean Six Sigma program supports the execution of Lean Six 

Sigma projects in response to requests by management and staff 

throughout the agency. For additional information or questions 

about the Lean Six Sigma program, please contact the Lean Six Sigma 

Program Manager, John Harrison (301-415-0151; John.Harrison@

nrc.gov) or Mindy Landau, Deputy Assistant for Operations, 

Communications and performance Improvement (301-415-8703; 

Mindy.Landau@nrc.gov) in the Office of the Executive Director for 

Operations. 
44

Staff Development

Many NRC managers and staff members have received formal 

training in Lean Six Sigma. Eleven staff members have received Lean 

Six Sigma training as black belts, and many managers have also 

received training as white belts. In addition, all of the black belt 

trainees and many other staff members have been involved in Lean 

Six Sigma projects, as either team members or project sponsors. Both 

formal and on-the-job training are continuing at a rapid pace.
45

Sample Lean Six Sigma Projects

The NRC has executed several Lean Six Sigma process improvement 

projects. Readers can find an updated list and descriptions 

of completed and ongoing Lean Six Sigma projects at http://

nrcweb:8600/oedo/lean six sigmap/index.html.
46
47

References and Online Resources

Cited Books and Articles:

Arthur, Jay, Lean Six Sigma Demystified, McGraw-Hill, 2007.

Brue, Greg, Six Sigma for Managers, McGraw-Hill, 2002.

Brussee, Warren, All about Lean Six Sigma, McGraw-Hill, 2006.

Deming, W.E., “Elementary Principles of the Statistical Control of 

Quality,” Nippon Kagaku Gijutsu Renmei, Tokyo, 1950, 1952 (in 

English). 

Deming, W.E., “Out of the Crisis,” MIT Center for Advanced 

Engineering Study, 1986. 

George, Michael, David Rowlands, Mark Price, and John Maxey, Lean 

Six Sigma Pocket Toolbook, McGraw-Hill, 2005.

Graham, Richard, PERFORMANCE is the best POLITICS, HPG Press, 

2008

Juran, Joseph M. and A. Blanton Godfrey, Juran’s Quality Handbook, 

Fifth Edition, McGraw-Hill, 2000.

Maleyeff, John, “Improving Service Delivery in Government with 

Lean Six Sigma,” IBM Center for the Business of Government, 2007.

Pizdeck, Thomas, The Six Sigma Handbook, Quality Publishing, 1999.

Womack, James P., Daniel T. Jones, and Daniel Roos, The Machine 

That Changed the World, Harper Collins Publishers, 1991.

Online Resources:

American Society for Quality Web site: http://www.asq.org/

Lean Six Sigma Academy Web site: http://Lean Six Sigmaacademy.

com/

The W. Edwards Deming Institute Web site: http://deming.org/
48

U.S. Nuclear Regulatory Commission Lean Six Sigma internal Web 

page: 

http://nrcweb:8600/oedo/lean six sigmap/index.html

U.S. Nuclear Regulatory Commission Strategic Plan for Fiscal Years 

2008–2013: 

http://www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1614/v4/

sr1614v4.pdf.

Suggested Reading:

Abramson, Mark A., Jonathan D. Breul, and John M. Kamensky, “Six 

Trends Transforming Government,” IBM Center for the Business of 

Government, Washington, DC, 2006.

Bozdogan, Kirk, Ronald Milauskas, Joe Mize, Deborah Nightingale, 

Abhinav Taneja, David Tonaszuck, “Transitioning to a Lean 

Enterprise: A Guide for Leaders”, Massachusetts Institute of 

Technology, 2000.

George, Michael, David Rowlands, and William Kastle, What is Lean 

Six Sigma, McGraw-Hill, 2004.

George, Michael, Mark Price, and Hundley Elliotte, Transforming 

Government Using Lean Six Sigma, McGraw-Hill, 2007.

Gygi, Craig, Neil DeCarlo, Bruce Williams, and Stephen R. Covey, Six 

Sigma for Dummies, John Wiley & Sons, 2005.

Jaisingh, Lloyd R., Statistics for the Utterly Confused, McGraw-Hill, 

2000.

Kennedy, Michael N., Product Development for the Lean Enterprise, 

The Oaklee Press, 2003.

Kiemele, Mark J., Stephen R. Schmidt, and Ronald J. Berdine, Basic 

Statistics, Tools for Continuous Improvement, Fourth Edition, Air 

Academy Press, 1997.

Koch, Richard, The 80/20 Principle, The Secret of Achieving More 

with Less, Doubleday, 2003.
49

Kotter, John P., “Leading Change: Why Transformation Efforts Fail”, 

Harvard Business Review, March/April 1995.

Maleyeff, John, “The Integration of Lean Management and Six 

Sigma” (with E.D. Arnheiter), The TQM Magazine, Volume 17, 

Number 1, 2005, pp. 5–18.

Maleyeff, John, “Exploration of Internal Service Systems Using Lean 

Principles,” Management Decision, Volume 44, Number 5, 2006, pp. 

674–689.

Mizuno, Shigero, and Yoji Akao, editors, “QFD: The Customer-Driven 

Approach to Quality Planning and Deployment,” Asian Productivity 

Organization, Tokyo, 1994.

Rother, M., and J. Shook, “Learning to See,” Version 1.3, Lean 

Enterprise Institute, 2003.

Smith, Richard, and Jerry Blakeslee, Strategic Six Sigma: Best Practices 

from the Executive Suite, Wiley, 2002.

Womack, James P., and Daniel T. Jones, Lean Thinking, Simon & 

Schuster, 1996.
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