I can't compile your sketch:
/Users/john/Documents/Arduino/sketch_sep22a/sketch_sep22a.ino: In function 'void setup()':
/Users/john/Documents/Arduino/sketch_sep22a/sketch_sep22a.ino:7:19: warning: suggest parentheses around arithmetic in operand of '|' [-Wparentheses]
TCCR1B = TCCR1B & B11111000 | B00000001;
^
/Users/john/Documents/Arduino/sketch_sep22a/sketch_sep22a.ino: In function 'void loop()':
sketch_sep22a:12: error: 'set' was not declared in this scope
if (set == true) {
^
sketch_sep22a:13: error: 'timeold' was not declared in this scope
timeold = timenew;
^
sketch_sep22a:13: error: 'timenew' was not declared in this scope
timeold = timenew;
^
sketch_sep22a:15: error: 'rpm1' was not declared in this scope
rpm1 = double(double(enc_count1) * double(333333.33 / (timenew - timeold))); //60000000/180=333333,33
^
sketch_sep22a:15: error: 'enc_count1' was not declared in this scope
rpm1 = double(double(enc_count1) * double(333333.33 / (timenew - timeold))); //60000000/180=333333,33
^
sketch_sep22a:20: error: 'PIN_OUTPUT' was not declared in this scope
analogWrite(PIN_OUTPUT, 100);
^
/Users/john/Documents/Arduino/sketch_sep22a/sketch_sep22a.ino: In function 'void count1()':
sketch_sep22a:25: error: 'set' was not declared in this scope
set = true;
^
sketch_sep22a:30: error: 'enc_count1' was not declared in this scope
enc_count1 = enc_count1 + lookup_table[enc_val1 & 0b1111];
^
exit status 1
'set' was not declared in this scope