Handbook of Management Scales/Cost performance

From Wikibooks, open books for an open world
Jump to navigation Jump to search

Cost performance (alpha = 0.817; composite reliability = 0.830; average variance extracted = 0.62)[edit]


Multi-item constructs served as variables for four performance measures of quality performance, delivery performance, flexibility performance and cost performance. Construct validity was given by satisfactory psychometric properties on content validity, unidimensionality, reliability, convergent and discriminant validity. The development and design of the survey instrument by an international group of senior researchers, as well as the grounding of each measurement item in empirical operations management literature, assured content validity.


Respondents were asked to indicate their performance relative to their competitors' performance on a number of dimensions, using a scale ranging from "far worse" (value = 1) to "far better" (value = 7).

  • Direct manufacturing costs
  • Total product costs
  • Raw material costs


Related scales[edit]