If $z$ is too small, you may "forget" to strike out some composites (having only prime factors larger than $z$). Therefore if $z$ is too small you only get $S(\\{1,\ldots,x\\},z\\#) \ge \pi(x)-\pi(z)+1$. For example, with $z=3$, we find that $S(A,P)=\lfloor x\rfloor -\lfloor \frac x2\rfloor -\lfloor \frac x3\rfloor + \lfloor \frac x6\rfloor$, hence $$\pi(x)\le \lfloor x\rfloor -\lfloor \frac x2\rfloor -\lfloor \frac x3\rfloor + \lfloor \frac x6\rfloor+1$$ as a very simple and very rough estimate. For example, this says $\pi(100)\le 100-50-33+16+1=34$, whereas $\pi(100)=25$. Clearly, the error starts growing from $x=25$ onward.