The main purpose of this study is to examine the Quality Management System interventions in SMEs in such a way to minimize the duplication of efforts and resources and come up with improved hybrid model for implementation. Main problems of these manufacturing enterprises and stakeholders are they work the systems as project for seasons or for short terms but the system have not continuity, In addition to that there are repetitive projects which are started by government organizations to help enterprises management systems and productivity (From the enterprises data). When design QMS model used the ISO principles and 5S Stages and analyses the impact and effects of Quality management systems on organizational performance, the impact and effects of ISO on organizational performance and the impact and effects of 5S on organizational performance. The data for the analysis was collected with the help of questionnaires from The Managers, Supervisors and Production Managers of small and medium manufacturing enterprises which located in Gullele Sub City. The collected data have been summarized using descriptive analysis method and then the relationships proposed and verified using Pearson correlation, and the causal relations were analyzed using regression analysis. Based on the result of the analysis, there is strong and positive relationship between QMS and organizational performance. Moreover, quality management system has significant influence on organizational performance. In order to minimize the duplication of similar systems and managing efforts and costs, In this study to develop model used the positive B value regression coefficients because the positive B value signs positive and significant relationship between 7P5S variables and organizational performance. The variables that have positive B value in regression coefficients are 3 from the 7 principles and 3 from 5S strategies. From this result the new developed model is called 3P3S model. 3P3S which takes QMS principles and Kaizen practices is developed. Thus, SMEs have to implement the proposed 3P3S model to actualize the benefits of Quality Management System practices and interventions. Key Words: QMS, the Seven Principles, Kaizen, 5S, Performance