"putz" has, of course, several meanings; here's one of them:
http://www.merriam-webster.com/dictionary/putzDefinition of PUTZ
: a decoration built around a representation of the Nativity scene and traditionally placed under a Christmas tree in Pennsylvania Dutch homes : crèche
here are some others:
http://www.yourdictionary.com/putzthe penis
a person regarded as stupid, simple, foolish, etc.
intransitive verbSLANG to waste time; putter (around)Bt even as a stand-in (no pun intended) for "penis" I find "putz" less vulgar - or having less shock value - than some of the other nicknames, like dick, shlong, love pump, etc. In fact, speaking in relative terms, "putz" almost sounds "putzig." :-)