Certified Production & Operations Manager (POM) Practice Exam

Which of the following would NOT be an operations function in a commercial bank?

1. Loan processing

2. Customer service

3. Auditing

4. Transaction processing

The correct answer is: Auditing

In a commercial bank, operations functions primarily relate to the activities that directly contribute to the production and delivery of services to customers. Loan processing, customer service, and transaction processing are vital operations functions as they involve direct interaction with clients and the execution of banking services, which are fundamental to the bank's day-to-day operations. Auditing, on the other hand, is generally considered a support or control function rather than a direct operations function. It focuses on assessing compliance with policies, regulations, and procedures, as well as determining the accuracy of financial records. While auditing is critical for ensuring the integrity and reliability of the bank's operations, it does not directly contribute to delivering services to customers or managing the core functions of the bank. Thus, it is distinct from the operational activities that engage customers and execute banking transactions.