MCE is a measure to indicate the percentage of value added activities contained in an activity that is used by companies. The use of MCE as a representation of a decrease in cycle time and man hours. The purpose of this research is to identify and analyze non-value added activities and value added activities, in the production process of the hull construction in PT. PAL Indonesia. Activities Non Value-added indicators known from the calculation of man hours, conducting problem analysis by combining 7 waste, with 7 management tools. Research conclusion is that MCE currently the lowest at this stage of SSH is equal to 28 percent, meaning very far from MCE ideal, in this step of SSH 72 percent contain the activities of non added activities, types of waste highest are activities waiting time for 32.02 percent. Concluded that from MCE analysis Storage and delay known that have the biggest share in the number activity. Therefore should be the reduction of storage and delay to reduce non-value added activity and Cycle Time pressed for MCE every stage of the production process to be more eff ective.