This paper addresses the gap in understanding factors influencing the implementation of function modelling methods in industry practice. The study is underpinned by analysis of technical reports from workplace projects in automotive product development, focusing on three aspects: (i) the technical challenge associated with the specific workplace problem, (ii) the broader workplace context and (iii) business-focused evaluation of the impact of the method. The analysis was carried out by a mixed team of academics and industry experts to ensure robust understanding of the methodological challenges within the technical context and realistic evaluation of impact from a business perspective. The principal contribution is the introduction of a comprehensive reference framework for the evaluation of applicability of a functional modelling method in industry practice. While the study evidence is confined to the Systems State Flow Diagram method, the framework dimensions reflect generic aspects of practical application relevant to the evaluation of other methods. The proposed framework provides guidance for researchers to carry out systematic analysis of the use, effectiveness and impact of function modelling methods in real-world applications, and for industry to evaluate the applicability of methods to real-world engineering projects, including pathways for evaluating impact to justify investment in method adoption.