Carletes
Essentially you are conceptually correct (but the devil is in the details). A complete reading of B31 Case 173 is essential because, yes, there are limitations (see B31 Case 173, (d) for example). Also remember that not all the materials that have been used previously in the B&PV Code will qualify for the 3.5 factor of safety. So you must use the maximum allowable stress magnitudes as provided by the Section II, Part D, 1999 Addenda, Tables 1A and 1B.
The above is only my opinion and not that of ASME or any ASME Code Committee.
Regards, John.
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John Breen