Final answer:
The false statement about lean operations is that they 'Are quickly becoming the dominant business paradigm.' While influential, declaring them as the dominant model overstates their presence. Additionally, lean operations can increase vulnerability to supply-chain disruptions and are not universally adopted across all business strategies. The correct option is D.
Step-by-step explanation:
Concerning lean operations, the statement that is false is Are quickly becoming the dominant business paradigm. While lean operations are certainly influential and have been adopted in various sectors far beyond manufacturing, to say they are quickly becoming the dominant paradigm may overstate their presence.
Lean operations focus on eliminating waste, both internal and external, and can indeed make a company more vulnerable to supply-chain disruptions due to minimal inventory levels and a high dependence on just-in-time delivery systems.
However, supply chain issues often can be mitigated with technological advancements, effective transportation methods, and sound national and international labor and supply policies.
Conversely, when firms become too large, they can suffer from diseconomies of scale, also known as the leviathan effect, making it inefficient to operate at such a large scale. In such cases, reducing operations can lead to lower average costs with a lower output level, aligning with the principles of lean operations.
Moreover, lean operations are not necessarily the ultimate goal for all businesses and may not align with certain business strategies or industry requirements. The essence of lean is to do more with less, but each business must evaluate if this approach suits its goals and operational environment. The correct option is D.