Sir! Good to see you here too
Basically, one of the approaches I recently went through was that "Mill Tolerance effects are built into the design factor", and so don't need to be incorporated by dividing the t by 0.875. The reference is a book "Piping and Pipeline Engineering Design, Construction, Maintenance, Integrity, and Repair By George A. Antaki". According to 4.1.2 Pipeline Design Equation, "90% SY x 0.875 /1.1= 0.72 SY" where 90% is Hydrostatic Mill Test Pressure, 0.875 [= 100% - 12.5%] and 1.1 is the "Over-Pressurization Factor". So by this, we get 0.72 factor, and all the remaining factors w.r.t different locations will be less than 0.72 as defined by Table 841.114A ASME B31.8.
Against this claim, I wanted to find the relationship between Mill Tolerance and Design Factor in somehow more detail.
Please have a look at this text in the referred book and thanks in advance for helping me out in clarifying this.
AlBaigMughal
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