This script is very similar to a script Jason Schleifer wrote from Maya, it allows you to split a predefined object into several segments based on the transforms of special cutter objects, these segments can then be linked back into a skeleton hierarchy. The advantage of displaying segmented geometry in the viewport rather than the skinned mesh is that you get faster playback speeds.
When you evaluate this script it create a new "Category" in the "Customize User Interface" window called "Harry's Proxy Creator" where you'll find the tool