This paper presents practical experience in planning, implementing, and adopting a Quality Management System (QMS) for embedded systems development at VTT Electronics. The main objective for the development of the QMS was to make it practical for real-life embedded systems research and development (R&D) projects. We have applied the IS0 9001 standard and IS0 9000-3 guidelines in building the quality system. From our personnel's point of view, the most important parts of the system have been document skeletons and plan templates that were made accessible to everyone. One of the major quality improvement resulting from the use of the QMS has been the enhanced predictability of R&D projects. This makes it possible for the organization to concentrate on essential matters. From our clients' point of view, we have clearly improved the quality of our R&D services in terms of the customer satisfaction index. Based on QMS auditing activities, we have been able to evaluate and tune our R&D procedures in a systematic manner. We have decided to use Total Quality Management and Quality Award frameworks in the further development of the QMS. Customer service and human resources management are examples of important areas for further quality improvement.