Should I use Sub-Equipment Hierarchy for sub-systems (first post)?

I am 2 months into the maintenance manager role for a fleet of Locomotives and it has been decided to use SAP PM by senior management based on a separate business arm requirements.
I believe for this to be successful the first step is to get the structure right so that data is collected in the most logical manner.
I intend to use SAP to schedule all maintenance tasks based on measuring points and dates of previous work orders, capture system and sub-system failure history, capture costs and parts usage and trend performance of subsystems based on their own and system level measuring points.
I have been told that all locomotives are assigned to a single functional location within the business model. The individual locomotives themselves are assigned as separate pieces of equipment in this functional location.
Within the individual locomotives there are a series of subsystems that have associated maintenance requirements based on time and usage and they are serial number tracked. These items are exchanged between the locomotives and the warehouse upon failure, upgrade or overhaul and include:
AC traction Motors
Wheelsets
Diesel Engine
Main Generator
Auxiliary Generator
Dynostarter
Gearbox
Compressors
Traction motor blowers (Fans)
Radiator fans and AC radiator fan motors
Is it logical to put these as sub-equipment within an Equipment Hierarchy with the Locomotive being the superior equipment?
Should notifications regarding their failure be assigned to the Superior Equipment (Locomotive) or the Sub-Equipment and what are the implications of each? If assigned to sub-systems can I still report on system reliability by "rolling up" the failures?
Do the measuring points (e.g. kilometres) assigned to the Superior Equipment (Locomotive) accumulate to the Sub-Equipment automatically and does installation and removal from different Locomotives with different kilometres affect this? For example a traction motor in Locomotive 001 is installed from 100,000 to 360,000 locomotive kilometres and then it is installed in Locomotive 002 from 300,000 to the current 340,000 locomotive kilometres. Does SAP accumulate 300,000 kilometres of life to the traction motor sub system based on its superior equipment's measuring points?
I have many more questions to come that I will most likely solve through experimentation and future questions, but in order to hit the ground running I would appreciate your feedback if any of you have similar experiences.
Thanks in advance
Glenn Sanders

In SAP, you can define "N" no. of hierarchies for Functional Location & Equipment.
But in the reporting, you can get the costs at Functional Location level & Equipment level at next. Its not possible to have Sub Functional Location level or Sub Equipment Level.
Also, you have mentioned that you will interchange the Sub components between Locomotives. Also, you want to maintain those using Serial Numbers. You can define these Sub Components as Assemblies with Serial Numbers so that Equipment can be created for those combinations.
To maintain Measuring Point for Sub Components, Equipment should be created. In SAP, you have the option to transfer the Measuring Points from One Equipment (Superior Equipment) to another Equipment (Sub Equipment).
While interchanging the Sub Component from One Locomotive to another Locomotive, without Measurement Reading Transfer, you can dismantle & install the same.

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