Cutout animation is a form of stop motion animation using flat characters, props, and backgrounds cut from materials such as paper, card, stiff fabric or even photographs. The props would be cut out and used as puppets for stop motion. 
The video on the left shows you a tutorial on how to create a Cutout Animation Video
The video on the right is an example of a high quality Cutout Animation
The video in the middle is an example of what I expect you to be able to accomplish.