To teach phonemic awareness to my kindergartners and first graders, I tell them we are going to stretch bubble gum. I let them pretend chew it up... then they get it in their hands and I tell them a word, cat, then we stretch it out into sounds /c/ /a/ /t/. Then we slap it back together and say cat. This is a fun activity and it gets the kids thinking about sounds in words.
Remember, we should work on PA everyday until 2nd grade but only spend a few minutes on it.