Hi Ankit,
Perhaps one of the titles 'Equipment and Component' or 'Equipment and Material' suits to your query. Even now you can change it.
My simple answer to your simple query would be:
An Equipment (Machine used for industrial production) is an assembly of several Components.
And a Component is nothing but a Material with a unique code.
In your example, It is you who decides a component (such as a Motor) an Equipment in SAP system. Accordingly it will be an Equipment and/or a Material.
Jogeswara Rao K
