PT SGM is a company that makes nutritious products made from milk which is one of the locations in Yogyakarta. In the process of milk powder production there are still some potential wastage both in the wet process and dry process which can cause low productivity and high resource use. This research background is increasing of competition, increasing customers requirement and corporate targets that must reduce air and energy use by 2- 5% per year. The purpose of this study is to evaluate the production process through a lean manufacturing concept approach to minimize waste that occurs using value stream mapping (VSM). Value stream mapping (VSM) is a mapping through value stream with details of activities that provide added value and activities that do not provide added value. The research method used is case study and a qualitative method carried out on the flow of milk powder production process. The resulting analysis results are then applied as a future process mapping activity and compared to the current activity mapping process. Based on the results of the study showed that the lead time decreased from 14 hours to 8 hours, so it was more efficient 6 hours or 42.8% then activities that did not provide added value decreased 72.7% from 29,700 seconds to 8,100 seconds by eliminating waste by reducing the number of liquid milk tanks and the number of silos for milk powder. Then some productivity parameters also showed good results, among others, operating efficiency could still be in the range of 82.5% -83.7%, reduction of wasted milk material (losses) decreased by 1.7% from 5.7% to 4.0%, then the average water use was reduced to - 11% and energy reduced by -3%.