Mschro:
I don’t know about the latest code reqr’mts., but just plain good practice has always dictated or recommended drilling/machining as the final step for hole sizing. Burning methods and accuracy have improved quite dramatically in recent years, so maybe this deserves some rethinking. But, until I was proven to be over doing it, I’d still opt for drilling or burning the hole 1/8-3/16" dia. small and then drilling to final size, and chamfering the edges of the hole. The thinking always was; burning was too rough, it left stress raisers in exactly the wrong orientation, it left a hardened layer at the hole surface, it was not accurate enough. The hole surface is pretty highly stressed and you want it to be well fitted with the pin and strong, but yielding, not hard, brittle and with many small notches perpendicular to the stress fields. From 11-1 o’clock you have very high bearing stresses btwn. the pin and hole in the lug, plus tensile and shear stresses, and at about 3&9 o’clock you have high tensile stresses due to axial loading and plate bending combined. All of these stresses get higher when the hole is too much larger than the pin dia. being used. If the lugs are only being used a few times to transport and install the equipment you might rationalize working to a smaller factor of safety in your design, at your own risk. Not so if this is a piece of lifting equipment which will be used many times and abused in the process. In this latter case you want a high FoS to tolerate field use and abuse.