Are the pins connected according to the diagram or according to the defines in the sketch? The two don't match.
Why step through all 8 inputs on the master when you only have 4 slaves?
value = (bitRead(count_1, 2),bitRead(count_1, 1),bitRead(count_1, 0));
The commas don't paste the three bits together into a value. You probably meant:
value = count_1 & 0x07;
You don't have the analogRead() inside the loop that loops through the slave inputs so you will only be reading input 7 of the first four slaves followed by the four unconnected inputs of the master.
If you want to display the first 32 inputs, try:
void loop () {
int value;
// LOOP THROUGH ALL THE ADDRESSES OF THE MASTER
for ( byte count = 0; count < 32 ; count++ ) {
// SET THE ADDRESS BITS
digitalWrite(S_S0, bitRead(count, 0) ); // Slave A0
digitalWrite(S_S1, bitRead(count, 1) ); // Slave A1
digitalWrite(S_S2, bitRead(count, 2) ); // Slave A2
digitalWrite(M_S0, bitRead(count, 3) ); // Master A0
digitalWrite(M_S1, bitRead(count, 4) ); // Master A1
digitalWrite(M_S2, bitRead(count, 5) ); // Master A2
// READ THE ANALOG VALUE
value = analogRead(Z);
// SERIAL OUTPUT
Serial.print(count, BIN);
Serial.print('\t');
Serial.println(value);
}
delay(3000);
}