I have a total of 19 Likert scale variables. I want to see which variables are related to one another (describe one common concept) and combine them together.

My method:

1. Perform a factor analysis and check the variables which have higher than 0.6 factor loadings for each factor.

2. I take these variables with high factor loadings and calculate Cronbach's Alpha.

3. if the Cronbach's Alpha is higher than 0.8 i combine the variables together by calculating the mean.

Can you please tell me if my method has any logical errors? What do you think about the method?

PS: The variables are needed for a panel regression

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