Closed loop systems(most vehicles today) rely on an Oxygen sensor(lamda) to compare oxygen levels in exhaust gases to those outside of the system. They're mostly based on lowering emissions and improving fuel economy. The oxygen sensor tells the EFI how much oxygen is available for combustion and doesn't let the engine run rich. Some systems will start up in open loop mode then switch to closed loop once the engine is warm. Open loop doesn't rely on an Oxygen sensor. I thought the SAE methods were for whether they measured torque or hp to calculate the other one.