Rotary or Flat Bed Die Cuts
The main method or standard means of die cutting involves the use of metal dies to give paper or substrate products specific shapes or designs that cannot be accomplished by a straight cut on a web press or a guillotine cutter. By using knife-edge cutting blades formed in to a pattern or die, a machine presses the die in to the material to produce the desired shape.  any shape can be created and applied to a diverse array of raw materials. Labels, envelopes, folders, cartons, and documents are only some of the lots of printed products that can be die cut for added functionality.
Web presses often have a rotary die unit that is utilized for die cutting paper and label stocks. Although there's limitations on the kinds of dies and the paper selections that can be provided, rotary die cutting serves as an effective method for longer run quantities of printed materials requiring some type of die cut area.
Single sheet products require the use of a flat bed die and a flat bed cutting press to die cut the shape in to the paper stock. The speed of this method is slower than a web press, but it does provide die cutting capabilities to a greater diversity of paper stocks and printed products.

Laser Engraving
A second method of die cutting, which has been developed in recent years, is called laser engraving. By using a computer-controlled beam of light to cut through the material, text & pics can be exactly reproduced on a variety of paper stocks. By using a laser, manufacturers can provide an exceptionally high quality, well-detailed & fine-lined reproduction of intricate art & pics or corporate logos.
The laser can generate die cuts that have cut away areas which are tiny in size, unlike a rotary or flat bed die cut which encounters difficulty in having a die made for tiny cut areas & further, has difficulty in stripping away the paper from the tiny cut out areas. A laser engraved die cut can be created to reproduce a 800 dpi (dots per inch) picture allowing for a cut impression with a significant amount of clarity & definition.

Perf Cutting or Perforating
An alternative to die cutting that is sometimes used is perf cutting or perforating. This method does not fully trim the desired materials away from the original shape, but in lieu creates a cut out area that remains in place. Perforating is used when a desired section is to be removed from the document, but not immediately. The intent is to have the perforated area stay on the document until it is removed later by the consumer or a secondary method. Perforating blades, which contain cut & uncut areas, are constructed in to a die pattern. The cut area of the blade strikes through the material while the uncut segment or tie of the blade does not cut the paper, enabling the perforated area to stay attached to the document until it is to be removed.
Preparation for Die Cuts or Perforations
When determining if a material ought to be die cut or perforated, the following points ought to be thought about:
The thickness and firmness of the material.
The stretch and elasticity or spring back of the material.
The coatings or laminated parts of the material.
In order to provide a top quality ("clean") die cut or perforation, the following factors ought to be thought about:

The type of material to be die cut or perforated.
The type of die and blades used for the cut or perforation.
The cutting surface (either hardened steel or compressible substrate) on which the material will lay when the die or perf blades are forced in to the material.
The machine that is accomplishing the die cut or perforation.