Material Test Reports (MTRs) are the unsung heroes of steel traceability. They’re not flashy. They’re not customer-facing. But in a steel service center, a missing or mismanaged MTR can cause shipment delays, failed audits, and even catastrophic liability. If you’re a CHRO focused on workforce effectiveness, you can’t afford to ignore the systemic risks posed by poor MTR handling.
Whether your team is cutting coil, fabricating tube, or shipping bar stock, every material move must be tied to traceable documentation. MTRs provide the vital link between physical product and metallurgical certification. Yet too often, these documents are treated as clerical afterthoughts—filed incorrectly, separated from inventory, or worse, lost entirely.
Why poor MTR management is more than a quality issue
When an MTR goes missing or can’t be linked to a shipped product, the fallout isn’t limited to the Quality Department. You risk:
Shipping non-compliant or misidentified material
Failing customer audits or certification renewals
Triggering costly rework, returns, or chargebacks
Exposing the company to legal liability if faulty material causes damage
From an HR perspective, these breakdowns usually reflect weak training, undefined responsibilities, and unclear escalation paths—not just a flawed filing system.
Common pitfalls in MTR handling
Manual processes without verification:
Paper MTRs passed hand-to-hand without a cross-check process lead to mismatched documents and shipments.
Disconnected systems:
When MTRs are managed outside the ERP or WMS, it’s hard to link them accurately to jobs or sales orders.
Staff not trained to read or validate MTRs:
A cert may look “complete,” but if no one checks heat numbers, mechanical properties, or grade specs, you risk shipping the wrong product.
No chain of custody or document ownership:
When “everyone” is responsible, no one is. Missing MTRs become ghosts in the system—no source, no resolution.
Build MTR handling into job design
Your first line of defense is clarity. HR must ensure that every relevant job description—from receiving clerk to shipping coordinator—includes explicit responsibilities around MTR handling. This includes:
Confirming MTRs are received and legible
Linking MTRs to the correct inventory or order
Escalating discrepancies before material moves forward
These tasks should not be buried under “other duties as assigned.” They must be core KPIs reviewed in regular check-ins and performance evaluations.
Train staff to interpret—not just file—MTRs
Reading an MTR requires more than matching order numbers. Staff must understand what the mechanical and chemical properties mean, how they relate to customer specs, and what constitutes a red flag. HR should develop a structured training plan with:
Baseline technical training on MTR components
Visual guides showing good vs. bad documentation
Case studies of past documentation failures
Role-play exercises on identifying and escalating issues
Don’t assume only Quality needs this training. Warehouse, sales, and customer service teams all benefit when they understand what an MTR confirms—and why it matters.
Define an escalation protocol for document issues
What happens when an MTR is missing? Illegible? Doesn’t match the material in inventory?
Too often, the answer is “wait until someone complains.”
Instead, HR should work with operations to define a standard escalation flow:
Level 1: Internal check for misfiled or delayed documents
Level 2: Notification to procurement or supplier for replacement
Level 3: Hold the job, notify the customer, and log a quality event
Make this process visible. Post it in receiving and shipping areas. Include it in onboarding. Build confidence that flagging a bad MTR is not a bottleneck—it’s a safeguard.
Digitize—but do it with discipline
Electronic MTRs solve many problems—but introduce new ones if not managed correctly. Your digital solution must:
Link MTRs to inventory in real time
Allow multi-field search (heat number, grade, customer, PO)
Maintain version control (no overwriting old certs)
Restrict editing access and track file history
HR’s role is to ensure that people understand and use these systems properly. Conduct usability surveys, monitor logins, and adjust training when adoption lags.
Reinforce through internal audits
Audit readiness isn’t about scrambling once a year. CHROs should push for regular internal audits that assess:
Presence and completeness of MTRs in outbound shipments
Accuracy of document-to-inventory matching
Staff adherence to SOPs for document verification
Quality of scanned or digital MTR files
Use these audits to identify training gaps—not to assign blame. Publish anonymized results to all teams and recognize improvements quarter over quarter.
Mitigate supplier-side documentation risks
Sometimes the problem isn’t internal—it’s the supplier sending incomplete or incorrect certs. HR can assist Procurement and Quality by:
Supporting supplier documentation standards during onboarding
Creating scorecards that track supplier cert accuracy and timeliness
Incorporating documentation reliability into supplier reviews
You can also designate “MTR champions” inside your team—people who spot and resolve supplier documentation issues quickly, and who can train others to do the same.
Make traceability a cultural value
Ultimately, MTR management isn’t just about systems and SOPs. It’s about fostering a culture where traceability is taken seriously. HR leaders should:
Celebrate error-free documentation audits
Reward teams that meet 100% traceability goals
Embed document control success into bonus structures
Include traceability questions in promotion interviews
You’re not just looking for people who follow rules—you want people who own the outcome.
Conclusion
Poor MTR management may start with a missing cert—but it can end with a failed audit, a lost customer, or a costly recall. CHROs must play a proactive role in embedding document accuracy into team structure, training, and performance culture.
Traceability is not a paperwork issue. It’s a workforce discipline issue. Build the right habits now, and your steel service center will be safer, smarter, and always audit-ready.
