Dr. Evil's tractor beam was part of Dr. Evil's evil plot to destroy the Earth. He had thoughtlessly codenamed it Preparation H, totally unaware that he was referencing a popular topical hemorrhoid cream. The beam was designed by Roboto Industries.
His son Scott chuckled at this name: "Why don't you just call it Operation Ass Cream, you ass?" But Evil didn't understand what Scott meant, no matter how much he referenced how the name was actually cream. Such as after the above question, Evil asked confused, "Oh, I'm sorry. Did you want some ice cream?" Scott snidely replied he would love some "chocolate ass cream" and his father still didn't understand what he was laughing about. When Frau Farbissina expresses approval of the plan, Evil declares that "On the whole [he] think[s] Preparation H feels good", leading Scott to once again laugh at the accidental innuendo.
Dialogue 
Edit
- Dr. Evil: On the whole I think "Preparation H" feels good. (Scott chuckles) Now what?
- Scott: No. I completely agree - Preparation H does feel good on the hole.
- Dr. Evil: (unaware of what Scott actually means) Well, I'm glad we're sprechen sie the same lingrie.
