Purpose The purpose of this paper is to gain a better understanding of the challenges academics face today in developing a knowledge-based economy. In response to these challenges, the authors developed a collaborative approach to enhancing the learning experience for engineering management (or industrial engineering) capstone design courses. The core of this approach is the problem-based learning through the execution of Lean Six Sigma (LSS) projects implemented via university–industry partnerships. The ultimate goal of this approach is to facilitate the integration and application of theoretical knowledge while promoting the development of professional skills in undergraduate students as demanded by business organizations. Design/methodology/approach The framework is firmly grounded in theory and methods from project management and quality management, and LSS literature and was tested in an engineering and management capstone design course at the author’s university. The case study presented here offers a detailed analysis of the design and implementation of the proposed framework. The authors also present the results of a survey conducted to assess the extent to which the proposed approach contributes to bridging the gap between theory and practice. Findings Results from the pilot implementation and survey results revealed that students who took the enhanced LSS capstone course felt that their projects helped them gain a better understanding on how to apply the theory to practical situations while preparing them to approach and solve problems in real-world settings confidentially. The authors also found that the LSS green belt certification helped recent graduates to transition to the workforce more easily, gain more credibility among coworkers and supervisors and make contributions quicker than other new hires, get the job they wanted faster and overall advance in their careers. Originality/value The framework is a composition of best practices used in a variety of universities and industries. While the majority of the LSS university-based programs are typically offered at the graduate level and with limited (support for) project executions, the framework proposed here provides the infrastructure for solid company staff-student team collaborations on projects executed from inception to implementation.