Design & activate the workflow

The first step is to design the workflow using Jira Administration Settings > Issues > Workflows. 

After designing the workflow you can active for your project. You do that by updating the workflow scheme.

Check Xray specific configurations for workflows

Go to Jira Administration Settings > Manage Apps > Xray > Miscellaneous Miscellaneous and check the several workflow related configurations. 

The following configurations are specific for Tests & Test Executions

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Check the specific module "Testing Workflows setup" for more details about workflows.