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You're not calculating it correctly.
The Out of Unit (OOU) ability shifts the hero by 0.25 on the scale, and the hero will start the battle within the range of [0.25; 0.5].
This means the unit's initiative range is [10; 20], below which the unit has no chance of going before the hero, and above which the unit will definitely go before the hero with OOU.
A unit within this range has a chance to go either before or after the hero.
Orc units, without any artifacts, fall within this range, meaning they already have a chance to go before the hero with OOU.
Furthermore, the tactic was described, as can be seen from the example, for the late game.
This means that many initiative artifacts will likely be collected.
This needs to be taken into account. These artifacts are not fully compensated for by anything, and the hero's initiative is not increased either.
Furthermore, 120 Warlords, 10 per week, even from a single castle, is 12 weeks.
Not 5 months, but only 3.
