Keep the dice separated into different piles. Each color dice should be in its own pile. This gives some organization to your activity.
Choose a die from each colored pile and have the student roll them. Let them practice a few rolls before you begin the actual lesson. Some students roll either too hard or too soft. Once your student can roll the dice and have them land on the table, you can begin the lesson.
Place the dice together so all the letters are facing the same direction. You should also position them so they are sitting side by side so the student can read the word easier.
Ask the student to sound out the word made by the phonics dice. It may not make a real word, but the student can still sound out the letter sounds. The point of the lesson is to have the student practice sounding out the phonic sounds in words.
Repeat the process using different dice. With each roll, a new word is made. Have the student sound out the word after each roll.